# Overhead, Labor, Profit, line item on proposals



## TJBClassicConst (Mar 11, 2011)

Just curious, as I've seen a couple of competitor's proposals which list a line item with....

overhead, profit, and labor

Are many of you doing this??? Why or why not???


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## Sir Mixalot (Jan 6, 2008)

I don't do that.:no: My price is my price"." :w00t:

-Paul


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## RobertCDF (Aug 18, 2005)

I have bottom line price, it's one number there is no breakout of lines. "We propose to complete the work described above for $$,$$$.00"


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## Rio (Oct 13, 2009)

No, but if they want to pay (well) for a detailed estimate we'll do that.


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## JBMagi (Jul 5, 2008)

I am curious about this as well. I have never come across out in the field, but out is an option in the estimating software I use. I appears check the box to spread my profit margin across all the categories. Out is nice for me to see while doing the estimate but never understood why I would disclose this to the client.


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## J L (Nov 16, 2009)

I've sold jobs before with detailed quotes that broke out profit and overhead at the end. I'll admit, people look at you kind of funny when they get to that part. This was for a company I worked for as an estimator/project manager. We only give a lump sum price and if they asked for a detailed breakdown of the price, we RUN!


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## Chris Johnson (Apr 19, 2007)

Commercial work for the GC can dictate Overhead and Profit, so you show it. I ran into this on many government projects.


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## ApgarNJ (Apr 16, 2006)

Never show it. I've seen some guys do it, I don't agree.


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## Bad Boy Biker (Dec 12, 2009)

There have been several big jobs we bid that it was required. We listed it and in several cases got the job.


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## JHC (Jun 4, 2010)

Oh no unless it is required, and even then I didn't like it.


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## Bweikel (Feb 20, 2011)

The only reason I could see someone doing that is maybe for a cost plus contract.

"The most common way people give up their power is by thinking they don't have any." -- Alice Walker


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## ohiohomedoctor (Dec 26, 2010)

People already get confused why we charge for labor and material, adding overhead and profit will only make this worse. 

Maybe it is necessary for commercial or govt jobs, but when it comes to residential stick with job x = $ y.

http://www.ohiohomedoctorremodeling.com


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## Bweikel (Feb 20, 2011)

ohiohomedoctor said:


> People already get confused why we charge for labor and material, adding overhead and profit will only make this worse.
> 
> Maybe it is necessary for commercial or govt jobs, but when it comes to residential stick with job x = $ y.
> 
> http://www.ohiohomedoctorremodeling.com


Great website by the way:thumbsup: 

Did you do it yourself?

"The most common way people give up their power is by thinking they don't have any." -- Alice Walker


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## Mike's Plumbing (Jul 19, 2010)

When you do that just given your customer something to focus on.....profit. when a person who doesn't do what we do for a living looks at the profit number no matter how small or large they try and do the math themselves and tend to come up with what they feel is fair. They have no clue and you don't want them to do that.

If you can instill confidence you can write a proposal on a piece of lumber and they will be fine with it. Keep it simple and focus on selling value. 

Mike


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## lomez (May 10, 2011)

I've never understood this approach, although I've seen it a couple times (always dealing with some level of government ). Except on a cost plus contract....NO WAY! 


My profit has nothing to do with the client's decision making process.


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## ohiohomedoctor (Dec 26, 2010)

Bweikel said:


> Great website by the way:thumbsup:
> 
> Did you do it yourself?
> 
> "The most common way people give up their power is by thinking they don't have any." -- Alice Walker


Thank-you! I did a lot of it, all of it as of late, but I had a guy help me set it up.

http://www.ohiohomedoctorremodeling.com


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## 480sparky (Feb 1, 2009)

I have one line with a dollar amount on it..... the price I'll do the job for.


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## VA Remodeler (Aug 8, 2007)

One price only that says "Labor and Material".

I got a chance to see a couple of those through the years that some of my good customers have shown me and I was a little surprised. My first reaction to myself was "aren't they trying to get the job"?? I can see when you would have to, but in these cases they didn't. ...no offense to anyone out there that does do it that way.


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## larryb (May 23, 2008)

If a "proposal" (estimate) sent to an insurance company on an insurance job - always include full O&P on 100%. No need to show it on customer billings/proposals however - the price is the price.


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## moorewarner (May 29, 2009)

I have been doing this but was starting to wonder if it was just a bad idea. This thread has cleared up that question. :laughing:


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