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How to Price Jobs for Profit: Break-Even and Margin for Service Businesses
To price jobs for profit, start with what each job costs you directly, add a share of your fixed overhead, and then add the profit you want. A price below your break-even covers the work but not the business. So this guide shows the formulas, a worked example, and a test to run on every […]
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Florida Sales Tax and Home Services Contractors: What Owners Get Wrong
Florida sales tax for contractors depends on the type of job. On a real property job, a contractor usually pays tax on the materials but does not charge the customer. Installing tangible personal property is different, however. There, the Florida Department of Revenue says to charge tax on the total charge. This is general information, […]
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Purchase Price Variance: The Manufacturing Number Owners Never Look At
Purchase price variance (PPV) is the difference between the standard price a manufacturer planned to pay for a material and the actual price it paid, multiplied by the quantity purchased. A positive result means you paid more than planned. So it is one of the earliest signals that material costs are drifting away from your […]
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