This video deserves WAY more views and attention!! This is exactly what I've been searching for I started as a solo operation this past year and just completely changed the way I thought about business for 2018 and this video has helped me understand business way more! I would definitely used this software or even buy it because it brings some sick value!! Thank You for the upload 😊👊
Every year we used to change our overhead numbers we also used a sliding scale smaller jobs had larger overhead and profit as a genersl rule most jobs had a5% profit if we were busy we might lower OH&P it was better to keep our employees working than have to lay them off snd lose them
I agree that a business should not rely on material mark-ups to recoup lost revenue, but a business should still markup material. I don't care if the customer looks up the price of the material and tries to argue about the price, I just tell them that this is the amount I am charging for the material. If you don't want to pay, I'll cut it out. I should add, the material I use comes at the end like the labor. We won't know what material we have to use till we get there and already use it.
Hi Thank you for the spreadsheet! It helped me tremulously! What you got going is amazing! I do have a question: I've calculated my billable charge and it came to $204.91 per hour. Is this per employee an hour or for my 5 crew including the owners which is the total of 5 guys total? If you have any email I can reach out that would be great. Thank you!
Got your e-mail - The billable hour charge on the Step 3 worksheet, cell E13 - This number is for each field employee hour spent working on the customer's project. If you have a two-person crew, then the hourly rate to charge is this times 2 for the hours they are doing billable work on the job site. For your 5 person crew, that means $1,024.55 an hour being billed while your crew is in the customer’s home. It should not include any office staff/company owner if they are not at the customer’s site doing the install work. I don’t know the cabinetry field, so I can’t say if that is high or low - but if all your cost inputs have been done right, then that number is what your company needs to charge to make back your cost + the profit % you entered. If that seems really off, then a conversation with your accountant or CPA would be helpful.
Why are the office staff [x3 ppl] lumped into Field Staff [x 5 ppl] hours when calculating Billable Hour? Surely that should be different as they work different hours?
They do work different hours, but the company's costs for all employees only gets paid by customers via field staff billable hours. So all costs - office staff, field staff and overhead must be recovered in those billable hours.
Roger - it should work for most small businesses that operate on a time & material charging basis. If you are charging customers on flat rate/per visit basis, it will take additional work beyond the scope of these spreadsheets to determine what those charges should be. There are many flat rate calculators available for sale from others.
Hi Carlos - You buy the equipment you need and then have customers pay for that equipment over the expected useful life of that equipment. There are set accounting rules on how to handle that. In the software, there is a line item on Step 2 of the spreadsheet for Equipment Depreciation. Do a search for capitalization of expenses and depreciation or talk with your accountant to learn more about that.
@@PHCCEducationalFoundation THANK YOU Trying to lower my overhead to be more competitive. Have older equipment that still use in the field not sure to input it. to lower my overhead
Hi Shadyrra, the software is built on what percentage of their time technicians are doing billable work - which is related to how many customers you have to keep them busy doing that billable work. The number of customers that takes depends on your unique situation. Billable hours - yes - this is for the techs out in the field while they are doing work that can be charged to a customer.
Thank you! Sorry, we cannot provide the unlock password. The cells on the spreadsheet are locked to protect the integrity of the formulas and to prevent others from copying these sheets to try to sell for a profit - we make them available for free. Thanks for your understanding.
In Step 2 (Overhead), In The "Cost As A % Of Sales Revenue" Column, It Stays At 0.0% Although The Other Overhead Numbers Are Entered. Am I Missing Something Perhaps From Another Column Or Something?
Marlyn, Hard to say without seeing what you have entered in the worksheets. Best guess is that field employee hours (billable time) have not been allocated in Step 1, which would allow the spreadsheet to calculate sales revenue.
Vinnie, it was designed with residential service & repair plumbing companies in mind, but should work ok with other trades that follow a similar operation style. It's free to use, so give it a try! Visit phccfoundation.org/overhead to download it.
Jose - the Excel spreadsheets are available at no charge, visit phccfoundation.org/overhead. The PowerPoint is not available except for PHCC chapters who wish to use them for a chapter meeting educational event.
You must recover the costs of all staff time proportionately in what is being charged to each customer. So the expense of those hours that are not directly attributable to a job (non-productive tech time & the office staff) must be recovered in the billable hours that are charged to customers. Customers are not paying for just a technician, they are hiring your whole company to get a job done - including all of its resources.
@@eduardoartiaga5158 If you want the spreadsheets, you can download the Excel file at no cost here: www.phccfoundation.org/foundation/phcc-overhead-profit-calculator/
Ali - We keep the formulas locked for two reasons - it prevents people from accidentally editing a formula that breaks the worksheets and to help prevent others from copying the work and then reselling it when we are giving it away for free to help our industry. The unlocked areas of the sheets are where all data entries should be made.
Samantha - We absolutely want people to use software (ours or anyone else's) to help them calculate their real costs and proper selling price so they can run a successful company. BTW, this software is now available at no charge by request - just e-mail us at foundation@naphcc.org.
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This video deserves WAY more views and attention!! This is exactly what I've been searching for I started as a solo operation this past year and just completely changed the way I thought about business for 2018 and this video has helped me understand business way more! I would definitely used this software or even buy it because it brings some sick value!! Thank You for the upload 😊👊
Thanks, glad it helped! This software is now available at no charge to contractors by request - just e-mail us at foundation@naphcc.org.
@@PHCCEducationalFoundation thanks for the video, still the software free of charge ?
@@scotolivera8207 Yes, a sponsorship from A.O. Smith allows us to give it away at no cost. Check your gmail!
@@PHCCEducationalFoundation could i have the excel sheet
@@mohammedaymanhammad6696 Yes, just visit phccfoundation.org/overhead to download it.
Im watching this for the first time, very helpful
This is great content!! You have done well organizing it and addressing the point!
Thank you Ermias!
WOW! Great presentation!! Thank you!
Finally in English!!! Thank you
Every year we used to change our overhead numbers we also used a sliding scale smaller jobs had larger overhead and profit as a genersl rule most jobs had a5% profit if we were busy we might lower OH&P it was better to keep our employees working than have to lay them off snd lose them
I agree that a business should not rely on material mark-ups to recoup lost revenue, but a business should still markup material. I don't care if the customer looks up the price of the material and tries to argue about the price, I just tell them that this is the amount I am charging for the material. If you don't want to pay, I'll cut it out. I should add, the material I use comes at the end like the labor. We won't know what material we have to use till we get there and already use it.
Hi
Thank you for the spreadsheet! It helped me tremulously! What you got going is amazing!
I do have a question: I've calculated my billable charge and it came to $204.91 per hour. Is this per employee an hour or for my 5 crew including the owners which is the total of 5 guys total?
If you have any email I can reach out that would be great.
Thank you!
Got your e-mail - The billable hour charge on the Step 3 worksheet, cell E13 - This number is for each field employee hour spent working on the customer's project. If you have a two-person crew, then the hourly rate to charge is this times 2 for the hours they are doing billable work on the job site.
For your 5 person crew, that means $1,024.55 an hour being billed while your crew is in the customer’s home. It should not include any office staff/company owner if they are not at the customer’s site doing the install work.
I don’t know the cabinetry field, so I can’t say if that is high or low - but if all your cost inputs have been done right, then that number is what your company needs to charge to make back your cost + the profit % you entered. If that seems really off, then a conversation with your accountant or CPA would be helpful.
@@PHCCEducationalFoundation Please send me the sheet
Why are the office staff [x3 ppl] lumped into Field Staff [x 5 ppl] hours when calculating Billable Hour? Surely that should be different as they work different hours?
They do work different hours, but the company's costs for all employees only gets paid by customers via field staff billable hours. So all costs - office staff, field staff and overhead must be recovered in those billable hours.
Hi havent watch video yet but does this work for every business even down to lawn care?
Roger - it should work for most small businesses that operate on a time & material charging basis. If you are charging customers on flat rate/per visit basis, it will take additional work beyond the scope of these spreadsheets to determine what those charges should be. There are many flat rate calculators available for sale from others.
what if you own your equipment. how you charge it? (same as a rental store will charge?)
Hi Carlos - You buy the equipment you need and then have customers pay for that equipment over the expected useful life of that equipment. There are set accounting rules on how to handle that. In the software, there is a line item on Step 2 of the spreadsheet for Equipment Depreciation. Do a search for capitalization of expenses and depreciation or talk with your accountant to learn more about that.
@@PHCCEducationalFoundation THANK YOU
Trying to lower my overhead to be more competitive. Have older equipment that still use in the field not sure to input it. to lower my overhead
How many customers do I need? Billable hours is this for the tech out on the field?
Hi Shadyrra, the software is built on what percentage of their time technicians are doing billable work - which is related to how many customers you have to keep them busy doing that billable work. The number of customers that takes depends on your unique situation. Billable hours - yes - this is for the techs out in the field while they are doing work that can be charged to a customer.
Thank you for your hard work! By the way , what is the password to un protect workbook?
Thank you! Sorry, we cannot provide the unlock password. The cells on the spreadsheet are locked to protect the integrity of the formulas and to prevent others from copying these sheets to try to sell for a profit - we make them available for free. Thanks for your understanding.
Is there anyway I can get this software? I found extremely helpful and would like to use it.
This software is now available at no charge to contractors by request - just e-mail us at foundation@naphcc.org.
Ok I sent an email over. Thanks
Thank you! I got it. Already deleted the comment. tks.
I dont believe I ever recieved the workbook. I check all my email folders.
thank you, great video.
does quick book has such capability to do the above calculation? thanks
Thanks Mark. Sorry, I don't know if Quickbooks does these calculations.
@@PHCCEducationalFoundation, thanks for the reply
In Step 2 (Overhead), In The "Cost As A % Of Sales Revenue" Column, It Stays At 0.0% Although The Other Overhead Numbers Are Entered. Am I Missing Something Perhaps From Another Column Or Something?
Marlyn, Hard to say without seeing what you have entered in the worksheets. Best guess is that field employee hours (billable time) have not been allocated in Step 1, which would allow the spreadsheet to calculate sales revenue.
@PHCC Educational Foundation I figured it out. I ended up erasing all the numbers and starting over from scratch. Works like a charm. Thanks
Hey...what software are you talking about?
Jonathan Logan It's the PHCC Overhead & Profit Calculator - phccfoundation.org/overhead
Could you use this for Pest Control Company?
Vinnie, it was designed with residential service & repair plumbing companies in mind, but should work ok with other trades that follow a similar operation style. It's free to use, so give it a try! Visit phccfoundation.org/overhead to download it.
how may I get this Worksheet ?? Help me plz
Hi, you can grab the PHCC Overhead & Profit Calculator here - phccfoundation.org/overhead
Are the power point sheets also available for download?
Jose - the Excel spreadsheets are available at no charge, visit phccfoundation.org/overhead. The PowerPoint is not available except for PHCC chapters who wish to use them for a chapter meeting educational event.
Do we still need to add the amount of the non billable hours? Otherwise, the more non billable hour, the more amount will be charged to customer.
You must recover the costs of all staff time proportionately in what is being charged to each customer. So the expense of those hours that are not directly attributable to a job (non-productive tech time & the office staff) must be recovered in the billable hours that are charged to customers. Customers are not paying for just a technician, they are hiring your whole company to get a job done - including all of its resources.
Is this software still available?
@@PHCCEducationalFoundationwhat if the employee has to work on holidays such as a pianist or organist playing in a religious setting.
Thanks
can i get the powerpoint
Eduardo - Unfortunately, the PowerPoint is not available to share.
How can we purchase or get more information.
@@eduardoartiaga5158 If you want the spreadsheets, you can download the Excel file at no cost here: www.phccfoundation.org/foundation/phcc-overhead-profit-calculator/
I need password to open the file
Its protected i can't open it
Ali - We keep the formulas locked for two reasons - it prevents people from accidentally editing a formula that breaks the worksheets and to help prevent others from copying the work and then reselling it when we are giving it away for free to help our industry. The unlocked areas of the sheets are where all data entries should be made.
why would you not just lower your salary and your taxes as well?
I guessed 115/ hour at the beginning of the video.
17,000 per month
about 20 min of value and 40 min of selling there software
Samantha - We absolutely want people to use software (ours or anyone else's) to help them calculate their real costs and proper selling price so they can run a successful company. BTW, this software is now available at no charge by request - just e-mail us at foundation@naphcc.org.
1700