Reply To: Overhead and Profit

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October 27, 2015 at 8:43 pm #401
John Brock
Keymaster

Hi David-

Thank you for the inquiry.

Labor – you can handle Labor a couple of different ways. In Components, you can add Labor per component (for example, you may have an appliance component and add it’s costs/tax, etc. then add installation labor per unit in the Components tab. In Materials and Layers, you can assign labor to any and all associated cost items you wish. OR, you can add Labor in Quotes.

Markup – profit, etc. The way I set it up is to have a checkbox in the UI (User Interface) that allows you to add margin (margin not markup – margin is the percentage of total costs. For example, a 15% markup would equate to 12.8% gross margin, so our total would take the total and divide by (1-margin percentage) – for example, a 15% margin would be total cost divide by .85 to get total estimate. If you need to add markup to a particular item, I suppose you could do it in the tax box in that component, layer or material.

Does this help? Please feel free to email me directly at john@estimatorforsketchup.com and I will be glad to help you with any questions, suggestions, etc.