True cost of doing business

[Carpet Cleaning Fool]

It sounds important.

Can someone explain what that means and how I can calculate it?

Thanks,

 

[RIP IT]

make sure you earn more than you spend and leave plenty of time to have a life.

 

[Jeremy N]

http://www.yourcostcenter.com/index.aspx

This is a really awesome tool.

 

[daniel@procarpet]

Easy. Keep track of every dollar you make and every dollar you spend on your business. What you are left with is your real income. Employees, taxes, insurance, maintanence, chemicals, advertising, equipment fuel etc. are all business expenses. All of these must be factored into your price. The more expense you have the higher the percentage of each job will go to your true cost of doing business. If your overhead is low then factor in around 30 percent of each job as business expenses. I believe Harper said he factors in 70 percent. That means he only keeps 30 percent of the total gross.

Harper should have a better response.

 

[Lee Stockwell]

Secret: The biggest "cost" isn't money....it's YOU, your life, your family, your health, opportunities lost that can never be recovered.

 

[John Olson]

Figure out every penny you're spending a year. Now take the hours on your truck and divide it. That is your true cost for every hour you run your machine before you start making any money.

P.S. You need to amorize in what it would cost you per month to replace your equipment. This is one I see alot of peole forget when I have them run this excerise. Just because your equipment is paid for doesn't mean your making more money it means your putting more money away to replace it.

 

[Desk Jockey]

Factors to include are Labor, Equipment (Tm), Materials Used, Vehicle, for cost of service.


Want more..... Maintenance/Repairs, Mortgage/Rent if you have a shop, utilities, insurance, taxes.

and I thought Art Kelly depressed me yesterday. :wink:

 

[ACE]

I have a nice excel spredsheet that will calculate profitability and a target hourly average given to me by Jeff Cross. Just contact me with your email address if you want it.

 

[J Scott W]

I have an Excell psreadhseet to calculate these costs. I should have never shared it with Jeff Cross.

I am glad to share it with anyone who sends me an email asking for it. You could even compare and see if Jeff is giving out the same spread sheet.

 

[Ryan]

Scott's spread sheet is great. It has helped me a lot.

 

[daniel@procarpet]

A better way to look at this is to figure out what it costs for your truck to just sit in the driveway/shop. Figure out what all and I mean all of your monthly expenses are from business to mortgage, health insurance, property taxes etc. and divide that number by 365 to get your true daily cost. Lucky for me my houses, equipment, trucks, and everything I own is paid for. My overhead is low but I still have plenty of taxes, phone/internet, maintanence, insurance, business supplies, etc to pay for. My biggest expense every year is fuel. Now that I have implemented a 20 dollar trip charge that is not an issue anymore. I just explain to my customers that I am an independant contractor and I can buy any tool or piece of equipment that I want and I choose to use the best. Sure I could show up and clean with a small truck or portable but since I choose to run a larger more powerful system I have a 20 dollar trip charge and will raise it to 25,30,40 etc over the years as fuel prices and chemicals go up.

 

[Hoody]

Daniel,

I hope your fuel bill, isn't more than your salary

 

[Dolly Llama]

It sounds important.

Can someone explain what that means and how I can calculate it?

Thanks,

I don't think you really want to know.
Our you might find out owning that POS V doesn't make as much $en$e as someone convinced you it would


..L.T.A.

 

[Greg Cole]

You can mentally masturbate on this one all night long. Subdivide, categorize, etx.. The easy answer is: everything that isn't your net profit.

 

[joe harper]

This ThReaD is "ILLRELIVANT".............. :shock:


All of you fOoKer'S....are "UN-EMPLOYABLE"......


"Just count your blessings"......That you were able to buy yourselves a job as a JaNiToR...


Ps...Other-wise...Most would be selling "FunNEL CakeS"...at the local FAIR....

 

[Nate The Great]

This ThReaD is "ILLRELIVANT".............. :shock:


All of you fOoKer'S....are "UN-EMPLOYABLE"......


"Just count your blessings"......That you were able to buy yourselves a job as a JaNiToR...


Ps...Other-wise...Most would be selling "FunNEL CakeS"...at the local FAIR....

Man, I love some funnel cake!!!!!! Good stuff.

 

[Greg Cole]

This ThReaD is "ILLRELIVANT".............. :shock:


All of you fOoKer'S....are "UN-EMPLOYABLE"......


"Just count your blessings"......That you were able to buy yourselves a job as a JaNiToR...


Ps...Other-wise...Most would be selling "FunNEL CakeS"...at the local FAIR....

Man, I love some funnel cake!!!!!! Good stuff.

Mmmmmm, with whip cream and cherry topping..... Harper- do you deliver?