PHCC Overhead & Profit Calculator
The key to making a profit in any industry lies in charging the customer enough for your services to cover all your costs, plus the profit you are seeking. Too many contractors set their prices instead by guessing at what their customers want to pay or by using their competitors' pricing as a guide. By not recovering their own true costs, these contractors are essentially working hard every day while putting themselves out of business. It's only a matter of time until the cash flow cannot support current work and the small business fails.
Fortunantly, there is help available from the PHCC Educational Foundation for those business owners who are looking for some help in calculating their real costs and finding the right selling price for their company.
The Foundation is proud to announce the release of its newly upgraded and enhanced software:
PHCC Overhead & Profit Calculator©.
The new software is a significant leap beyond the Foundation’s previous overhead worksheets and was developed using feedback gathered from contractor users. The result is a greatly expanded set of spreadsheets that is more flexible, more accurate and can better tell the story behind the numbers you enter. At its core it remains a simple to use tool that helps small contractors find a selling price that covers all their costs of doing business and provides the net profit percentage they desire.The CD comes loaded with Excel spreadsheets that take users through the steps of calculating their Labor Costs, Overhead Costs, Break-Even Rate, Profitable Selling Price, Monthly & Annual Budgets, and Target Revenue & Profit Goals.
Business owners can use the spreadsheets in company meetings to demonstrate to employees the true costs of doing business and why all that money they collect from customers isn't going into the owner's pocket!
PHCC chapters are encouraged to give an overview of the program at local chapter meetings to help new or small business owner members gain better control over their pricing policies. The CDs can also be used as member recruitment or retention gifts by your chapter.
The CD includes narrated tutorials to guide users through how to use the worksheets and a printed guide with additional instructions and examples. Extra tools on the CD include a Lost Time to Dollars productivity calculator and a Financial Ratios calculator to help you analyze & compare your financials against industry averages.
New Features in the 2011 Version:
- Ability to track costs and revenue for up to 50 employees.
- Ability to allocate employee & overhead costs and revenue across up to 10 different departments.
- Easier & more precise method to account for office staff costs.
- Get a properly calculated selling price to use for the entire company or selling prices tailored for each department.
- New reports worksheet that graphs your data and allows comparisons between employees and departments.
- New budget worksheets that allow you to build a monthly plan for your revenue and expenses, with instant feedback on how your decisions will impact cash flow.
The CD is available for sale through the PHCC website, item #9330. PHCC member pricing is $199, or $249 for non-PHCC members. Multiple copy discounts are available for PHCC chapters or other groups. Contact John Zink at the PHCC Educational Foundation for details at (800)533-7694.
Free Webinar Sneak Peek
Learn how the software works by watching our tutorial videos. Each video covers one step of the worksheets: