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TL;DR Price a roof backward from your profit, not forward from your costs: direct job cost ÷ (1 − overhead % − sales commission % − target net profit %). Example: a 25-square re-roof with...
TL;DR Roofing overhead percentage is your total annual overhead divided by your total annual revenue. A roofing company carrying $800,000 in overhead on $4M in revenue runs 20% overhead. To price a job, divide its...
TL;DR Most contractors are estimating with an overhead number nobody ever calculated. It is 10%, a round figure that felt about right, or something another contractor said he uses. Your real construction overhead percentage is...
TL;DR The average contractor nets about 6% to 7% before taxes. A well run company should target 8% to 10%, and top performers clear 12%. Most owners are working from a wrong number, usually because...