Overhead and Profit

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    David Childs

    Can I markup material to cover material burden?
    Can I markup labor to cover labor burden?
    Can I add a profit percent on top?

    John Brock

    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.

    John Brock

    To add to discussion about overhead and profit, I originally wanted to keep the UI simple (hence the one checkbox for total gross margin). Some overhead items, like insurances, etc. could be entered as quotes, but the way you would have to handle O&P is with gross margin. Would you rather see two checkboxes? One for Overhead and one for Profit?

    I have a bunch of ideas for the Version 2, if 1 takes off, and I would definitely consider adding that functionality and more and appreciate your input!

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