Job Costing

[Will D]

At Mikeysfest this year one of the guys mentioned the importance of job costing. I’m right in the middle of modifying maintenance plans and pricing for my commercial customers, and I like the idea of basing my price on my expenses/profit, rather than picking a number out of thin air (which is basically what I’ve done before). I just don’t know how to go about it. I know how much my equipment cost, and I can figure out chemical usage, but other than that I have no idea how to calculate. Any tips to get me started?

 

[BIG WOOD]

Consider yourself as an employee, and a business owner on the job. How much does it cost to pay a well seasoned employee? And how much are you worth? Factor in not just the per hour cost of what the employee makes, but also add in the cost to pay payroll.

You've got expenses such as
chemicals
fuel
insurance
cost of equipment

and most importantly:
-payroll for both employee and you
-average 20% net
and more that I can't think of right now. It'll come to mind later today

 

[hogjowl]

Well, that was a wasted DAP, but I’m not surprised. I’ll post a more helpful post later, when I have time.

 

[they live]

Well, that was a wasted DAP, but I’m not surprised. I’ll post a more helpful post later, when I have time.

You should reflect on this.