The Capacity Based Markup Workbook
(also known as the “PILAO” Worksheet):
An Excel Spreadsheet for Determining Billing Rate & Labor Markup for Contractors Using a Capacity Based (aka PROOF/Indexed/Labor Allocated Overhead) Markup Methodology. Wondering just what is a Capacity Based Markup and how should you go about using it? Vist the Paradigm-360.com Bookstore and take a trip through the Markup, Pricing, & Financial Management category and look for David Gerstel’s; Running a Successful Construction Company and Ellen Rohr’s How Much Should I Charge?: Pricing Basics for Making Money Doing What You Love.
A Little History as to How The Capacity Based Markup Worksheet Came About
As part of a discussions in the Journal of Light Construction Online Forums back in 2004 regarding use of what is known as a Capacity Based Based Markup (also sometimes known as PROOF or Indexed or Labor Allocated Overhead markup so hence the PILAO acronym for the worksheet) I created this Excel Workbook. For more information regarding using a PROOF/Indexed/Labor Allocated Overhead markup method in general click to read the the Quietly re-Thinking Out Loud Blog post entitled: The Potential Problem Using a Traditional Volume Based Markup.
Introduction
The Introduction Worksheet provides a basic overview of the spreadsheet’s framework and navigation links to the individual worksheets.
The Labor Cost Worksheet
With the Labor Cost Worksheet in the yellow shaded data entry cells you set the wage rates, employer costs, benefit costs, and other miscellaneous Variable Overhead Expenses you want to cover such as truck payments, vehicle maintenance, small tools, etc.
The Billable vs. Non-Billable Hours Worksheet
On the Billable vs. Noninflammable Worksheet you account for items such as paid holidays vacation time, training, downtime and other non-billable but paid hours that you and your employees will generate.
The Fixed Overhead Costs Worksheet
With the fixed Overhead Worksheet you enter you cost or budgets for all of your Fixed Overhead items such as Capital Tools, General Office Expenses, Marketing, Insurance , Professional Fees, Local & Regional Business Taxes., Loan Payments, Contingency, Owners Compensation, Sales Cost and the Net Profit you want your business to generate.
The General Summary Information Worksheet
The General Summary Information Worksheet displays the calculated Labor Billing Rates for you and your employees along with a breakdown based on all of the entered data as to what your costs and projected Net Profit are per employee and/or per hour, per day, per week, per month or per year.
The Owners Information Worksheet
And after setting up and answering the questions in the yellow shaded cells the Owners Information Worksheet displays the Owner’s Compensation package based on all the data entered.
The Capacity Based Markup Worksheet
Capacity Based Markup worksheet is an simple Excel workbook with no macros so it works with either Macintosh or Windows versions of Excel and can even be opened and used with Apple’s iWork Numbers application too.
Licensed users of the Capacity Based Markup Worksheet will also receive a free upgrade to version 2.0 when it becomes available in the spring of 2010.
$10.00 — Purchase Your Worksheet Via Paypal
On recieving notification of your order from PayPal we will make every effort to send your download link to the Capacity Based Markup Worksheet via the email address on your PayPal account ASAP (generally within 1 to 24 hours)