Request For Quote
The Painting Company receives a "Request For Quote" an employee is dispatched to review the potential job. During the review processes it is discussed what is required to complete the job and a quote is drawn up.
Meet with Customer
Discuss Requirement to Complete Job
Write Up A Quote
The Paint Project
The project is to paint a large garage. This job requires sanding and prep work along with 2 coats of paints. There are 4 different colors to be used on the various parts of the garage.
Requires Sanding and Prep
Requires 2 Coats of Paint
4 Different Colors
Requires Detailed Cut Work
Total costs of Time/Materials = $2,409.96
Labor-Boss - $43.76 X 24.0 hrs
Labor-Helper - $27.78 X 24.0 hrs
Wall Paint - $49.00 X Qty 5
Trim Paint - $53.00 X Qty 2
Rafter Paint - $240 X Qty 1
Door/Window Paint - $51.00 X Qty 2
*** Time/Labor costs are calculated by using the "TPC Direct Labor Form". The "TPC Direct Labor Form" will adjust hourly rates based on the employees burden to the company IE. Tax, Benefits, Indirect Labor.
*** Estimated time would vary by company.
Calculate By Net Profit Percentage
Company goal 15% Net Profit
*** "Net Profit" is the remaining revenue after paying the "Time/Materials(COGS)", "Overhead" and "Sales Commission". "Net Profit" should NOT be confused with "Gross Profit".
*** Typical Range: 7% to 15%
*** A dramitically high "Net Profit" percentage can greatly impact your final price. Businesses should consider this when setting profit goals.
Company's Overhead : 40%
Rent/Mortgage
Utilities
Vehicles
Indirect Labor
Expenses / Sales x 100 = Overhead %
*** Typical Range: 30% to 60%
*** Price competitve businesses strive for a 50% or less "Overhead Percentage"
*** Based on company's expense and monthly sales the "Overhead Percentage" is 40%
Outside Sales Representative
10% Sales Commission
*** Sales Commission is the percentage of the revenue that is paid to a salesperson for obtaining or cultivating a sale. Sales Commission is optional and can be 0%
*** Commission can also refer to fees such as credit card processing fees, referral fees etc.
*** Commission/Fees is a percentage of the total price.
Calculate a "Price Report"
Selling Price
Net Profit
Breakeven Price
Sales Commission
Time/Materials
*** Calculation creates "Price Report"
*** The "Price Report" highlights the profitability of the "Product" or "Service" based on the companies "Overhead", "Commission" and desired "Profit".
VIEW PRICE REPORT
Project Summary
The paint project was completed. By using the The Profit Calculator and accounting for all financial aspects of the paint project "The Painting Company" was able to cover costs including "Time and Materials", "Overhead" and "Commissions". A "Net Profit" amount was included so "The Painting Company" was able to make a profit on this job.
VIEW PRICE REPORT