PHCC Overhead & Profit Calculator
The key to making a profit in any industry lies in charging the customer enough for your services to cover all your costs, plus the profit you are seeking. Too many contractors set their prices instead by guessing at what their customers want to pay or by using their competitors' pricing as a guide. By not recovering their own true costs, these contractors are essentially working hard every day while putting themselves out of business. It's only a matter of time until the cash flow cannot support current work and the small business fails.
Fortunately, there is help available from the PHCC Educational Foundation for those business owners who are looking for some help in calculating their real costs and finding the right selling price for their company.
PHCC Overhead & Profit Calculator©.
The software was developed using feedback gathered from contractor users. At its core it is a simple to use tool that helps small contractors find a selling price that covers all their costs of doing business and provides the net profit percentage they desire.The full download version comes loaded with Excel spreadsheets that take users through the steps of calculating their Labor Costs, Overhead Costs, Break-Even Rate, Profitable Selling Price, Monthly & Annual Budgets, and Target Revenue & Profit Goals.
Business owners can use the spreadsheets in company meetings to demonstrate to employees the true costs of doing business and why all that money they collect from customers isn't going into the owner's pocket!
PHCC chapters are encouraged to give an overview of the program at local chapter meetings to help new or small business owner members gain better control over their pricing policies.
Tutorials to guide users through how to use the worksheets and a printed guide with additional instructions and examples are available.
- Ability to track costs and revenue for up to 50 employees.
- Ability to allocate employee & overhead costs and revenue across up to 10 different departments.
- Easier & more precise method to account for office staff costs.
- Get a properly calculated selling price to use for the entire company or selling prices tailored for each department.
- New reports worksheet that graphs your data and allows comparisons between employees and departments.
- New budget worksheets that allow you to build a monthly plan for your revenue and expenses, with instant feedback on how your decisions will impact cash flow.
The software is available at no charge upon request. Just e-mail us at firstname.lastname@example.org.
Webinar Sneak Peek
Learn how the software works by watching our tutorial videos. Each video covers one step of the worksheets: