What you actually earn per hour once the unpaid hours are counted — quoting, driving, buying materials, chasing invoices, doing the books on a Sunday. A trade that bills $90 an hour and spends half its week not billing is earning $45. The number is uncomfortable and it is the one that explains why a full calendar can still feel like standing still.
Related terms
- Break-evenThe point at which a day's work has brought in enough to cover what the day cost you, before a cent of profit.
- Job costingPutting the real labour, materials and expenses of a finished job against what you charged for it, so you know what that job made.
- OverheadWhat the business costs to run whether or not you work today — insurance, the van payment, the phone, the accountant, the software, the storage unit.
More in pricing, cost and profit
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