bid for profit_ss
DESCRIPTION
5 Steps to Black - Identify overhead, identify revenue (history or projection), convert overhead to a percent of revenue, add profit, identify the black number. The "black number" is what you use in the computation for all bids to ensure you cover direct costs, overhead and meet your goals for profit. Speaker notes available upone request.TRANSCRIPT
Steps to BlackBy Chris Prince
5
CalculateOverhead1
By Chris Prince
By Chris Prince
History or Projected
Fixed VariableOffice
UtilitiesSalariesVehicle
BondsGasTravelProject
2By Chris Prince
By Chris Prince
What was last year’s Revenue?What is projected Revenue?OR
•Stable•Growth•AdjustmentM
OD
E
3By Chris Prince
CONVERT OVERHEAD TO of REVENUE %
By Chris Prince
Our Overhead: Our Revenue:
184,000$
800,000$
184,000 .23800,000÷ =
By Chris Prince
23% of Revenue
goes directly
to overhead
4By Chris Prince
IDENTIFYOVERHEAD& PROFIT
By Chris Prince
Our Overhead: Our Profit:
23 %10
33
%%
By Chris Prince
33% OF ANY JOB
GOES TO
OVERHEADPROFIT
5By Chris Prince
IDENTIFYYOUR BLACK #
By Chris Prince
OVERHEAD: PROFIT:
23 %10
33
%%
is this
the black #
By Chris Prince
DIRECT COST: 45,000
33 %$
+59,850 $
19,750.50 $
40,099.50 $-
By Chris Prince
33 % O & P of =
By Chris Prince
33 % O & P $
of =
67 % 45,000 of =
??
By Chris Prince
33 % O & P $
of =
67 % 45,000 of =
45,000 ÷ .67 $67,164.18 =
By Chris Prince
DIRECT COST: 45,000
33 %$
+59,850 $
19,750.50 $
40,099.50 $
DIRECT COST: 45,000
67 %$
÷$
22,164.18 $
45,000 $
67,164.18
By Chris Prince
DIRECT COST: 45,000
33 %$
+59,850 $
19,750.50 $
40,099.50 $
DIRECT COST: 45,000
67 %$
÷$
22,164.18 $
45,000 $
67,164.18 RED BLACK
By Chris Prince
All direct costs will be divided by
.67
Steps to BlackBy Chris Prince
5