5.9 Dual Overhead Pricing Strategy – Methodology for Success

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Commercial or General Job Estimating Pricing Tools

The commercial estimation or general estimating process for a job is defined in this section. A rehab job, such as plumbing or air conditioning, is about understanding your company costs of doing business. These materials and templates are designed to be user-friendly and specific to a company. They are generic so you can enter your company’s direct costs for a job and use the labor and overhead estimates to create price. It creates a break-even and then allows you to apply whatever profit your company desires to create a price.

Pricing Using Dual Overhead Method

Inside this video we explore what dual overhead is and how to apply it to your contracting business. It is a methodology that requires some time to study and implement but once mastered it is a highly effective system to make certain the labor and material portions of our contracting companies get priced properly to achieve a target profitability.

Run Time: 22:50

Dual Overhead Step by Step Pricing System

Learn the dual overhead method of pricing and how it creates factors for labor and non-labor areas of a estimate. It is by far the most accurate method we have to date as a pricing system.

Residential Use of Dual Overhead Pricing Method

Dual overhead is a method we suggest for companies who want to evaluate labor and materials separately in creating a price. It will lead to a break-even figure and then you can calculate your desired profit. Utilize this template to estimate how dual overhead works. As a general rule, dual overhead is best used when a company is fully segmented on its income statement allowing for accurate overhead by department.