Hourly Rate Calculator - Steps to Controlling your Labor
If you can control your labor you control ultimately your profitability, especially in a service based business involving technicians or mechanics for example. Your profit on your materials should look after itself as you should be putting sufficient mark up/profit on materials anyway so for the purposes of this explanation materials are all looked after with a healthy profit margin.
The calculations below therefore only involve labor costings not materials and are centered around overhead recovery analysis for a service based business using an automotive repair shop as a working example for our hourly rate calculator.
This process can be used also however as an hourly rate calculator for any service based business. You could use this to calculate an hourly rate for consulting services for example. Again this calculates labor rates only and no materials are involved in this calculation process.
To find out more about the Overhead Recovery Analysis Template download the PDF document below. Read this before watching the video, the video uses examples from the guidelines so its easy to follow.
Overhead Recovery Template - Guidelines
See a Video on How to use the Overhead Recovery Analysis Template
This Template is in Excel (.xls) format and suitable for all Excel Versions from V97 - V2010.