All these labor burden numbers seem real accurate. Mine is about 22% of payroll, due to the higher insurance rates here.
To get your overhead per hour, take all your overhead costs and divide by the total number of FIELD PRODUCTION HOURS your comapny will pay for. Owners salary should be in overhead as a line item.
Our average wage is $ 14.56 per hour.
6330 hours divided by $ 109,557.
Our overhead is $ 17.97 per hour.
6330 hours divided by $ 113,725.
Total cost per hour is $ 32.53 per hour.
20% net profit is about max in this saturated market, so we are getting about $ 39.00 per hour.
We got away from our very tight operations system because of an employee issue, 1( 1 employee
) that caused us substantial efficeny loss and production compromise. This really started to bite us in the
about 2 months ago, and is going to take a bit to recover from.
As a result, we are reindexing our operations process, and strictly running our copyrighted system and get some profit back in to this bad boy. Even at that $ 39.00 per hour and 20% net, efficent operations can increase that net by another 15% without increasing costs... IF, IF , IF, field and support operations are closley monitored , controlled and you have employee buy in through profit sharing.