What the business costs to run whether or not you work today — insurance, the van payment, the phone, the accountant, the software, the storage unit. Overhead cannot be charged to any one job, so it has to be recovered across all of them, which means a price that covers only labour and materials is a price that loses money quietly all year.
In FieldQuo — Expenses and overhead
FieldQuo separates what you spend on a job from what you spend on the business, which is the split overhead recovery depends on.
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.
- MarginWhat is left of the price once the cost of doing the work is taken out, given as a percentage of the price.
- Labour burdenThe true cost of an hour of somebody's time, which is their wage plus everything you pay because they are on your payroll.
More in pricing, cost and profit
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