I’m a little confused about the profit part of Profit and Overhead. How do we justify adding some percentage called profit? Not that I’m against it, no I just need to get the idea straight in my head. I know a business can’t survive without profit, but…..maybe I still need to make that transition from Craftsman to businessman that some of you talk about.
Working alone, I don’t have much overhead. I need to charge enough to pay for my overhead and make enough to live on. If I worked for someone else, I’d only be making about 25/hr I’d guess. Since I’m charging $35/hr does that extra $10 cover overhead and profit? Is P&O even appropriate when you only work T&M?
I currently work alone on T&M doing repairs, wiring, tile, trim, building cabinets… a little of everything really. I charge an hourly rate of $35 for everything after the initial meeting and no markup on materials. And I’m not getting rich I can tell you.