Overhead

Two companies, the same patio, the same money out the door. One books 26% gross margin, the other 37%. Which one is making more money? Neither.

Video coming

The sheets are ready now. The episode lands here the day it's up.

What this one covers

  1. 1

    What overhead is, the six costs that are genuinely arguable, and the only rule that matters: sort them once and never move them.

  2. 2

    What an hour really costs: overhead per billable hour on top of the burdened wage, and the assumption in the denominator that makes every bid too cheap.

  3. 3

    Ray and Dana's whole year side by side, and what it does to the ranking of every job in the series.

The sheets

This episode hasn't been recorded yet. The sheets go up here the same day it does.

Prices are mine. Yours are different. The math is the same.

Who made this

Ledge is software for landscape design-build. These sheets are the thinking underneath it.

Every number on these sheets is the kind Ledge carries for you on a real job: the burdened hour, the man-hours a price buys, what the crew actually did against it. The first ten shops run Ledge free; we make money only on payments. If you want to see it on your own jobs, there's one person to talk to.