Let's discuss an important aspect of your business - your true overhead costs. It's crucial to have a clear understanding of this, as it directly impacts your profitability.
In simple terms, overhead refers to the expenses you need to cover in order to keep your business running smoothly, even when there's no one actively working on projects. It encompasses everything except material costs, labor expenses, and job-specific expenditures. This includes office expenses, salaries, sales costs, office equipment, and vehicles, among others.
For electrical contractors like yourself, overhead typically ranges between 13% and 20% of total sales. Interestingly, smaller contractors tend to have higher overhead percentages, while larger contractors generally have lower percentages. However, it's important to note that these figures are just averages. Every company is unique, and your overhead percentages may vary depending on your specific line of work, business practices, and accounting period.
The key is to keep your overhead at the minimum necessary to ensure your field workers operate at maximum efficiency. There's no one-size-fits-all "correct" percentage that applies to everyone.
Understanding your true overhead costs is vital for making informed decisions about pricing, budgeting, and overall financial management. It allows you to have a clear picture of your business's financial health and helps you strategize for growth and profitability.
I have an important question for you. Do you know your true overhead cost? If your answer to this question is no, it's possible that you're missing out on a significant amount of money.
I wanted to reach out to you because I believe there may be an opportunity for us to help you increase your revenue. We have come across a solution that has proven to be highly effective for businesses like yours. By implementing this solution, you could potentially see a substantial boost in your profits.
I understand that you may have reservations or concerns, but I assure you that our solution is both reliable and trustworthy. Many other businesses in your industry have already taken advantage of it and have seen remarkable results.
We know that starting your own contracting business can be a daunting task, especially if you began as a field technician. But don't worry, TurboBid is here to make your life easier.
Our #1 rated estimating software solution is designed specifically for contractors like you. We understand the challenges you face and have included all the tools you need to run your business successfully.
With TurboBid, you don't have to worry about the complexities of estimating costs. Our innovative "Wizards" guide you through each step, helping you identify and account for labor burden costs, company overhead costs, and everything else you need to consider.
We want to make sure you have everything you need to succeed, which is why we also provide dedicated support to help you set up your copy of TurboBid. We're here to answer any questions and make the process as smooth as possible.
So, if you're ready to take the leap and become a successful business person, TurboBid is here to support you every step of the way. Join the countless customers who started their own contracting companies with TurboBid and never looked back.
Want to accurately calculate your company's overhead costs without any hassle? Look no further! Introducing the Overhead Wizard from TurboBid.
Our user-friendly wizard will guide you through all the necessary steps to calculate your overhead costs with precision. And the best part? As your costs change, simply update the values in the wizard and your estimates will automatically adjust accordingly.
To get a better idea of how the Overhead Wizard works, we've created an informative video for you. Just hit the Play button and start exploring the wizard by clicking on the clearly outlined red buttons or symbols.
So why stress over crunching numbers when you can let the Overhead Wizard do all the work for you? Give it a try today!
Looking forward to helping you streamline your overhead cost calculations.