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| Know Your Overhead Burden |
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 It takes a lot more than machine tools and tradesman to run a machining business. Costs for delivery, insurance, fuel, administration etc it just seems endless. Large companies know this very well and they factor it into their costs but small & medium business's find this hard to correlate and very time consuming.
Because of this its often ignored but these overhead costs are very real and they have to be paid.
QuoteCam's Burden rate calculator lets you add all your monthly overhead costs including salaries, wages etc and all the incidental costs that are needed to run a business. The system then looks at the potential to recover these costs based on your recoverable hours. At the end you are left with a hourly "Burden Rate" that is taken into account in your quotes.
Lets face facts. If you ignore these costs when costing a quote then you are simply adding a profit margin to a artificially low cost. It means that any profit you think you are making needs to be used to pay your overheads. Only what's left afterwards is real profit. |
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