This is the third of four related articles. In the first installment, titled "Invisible Overhead," we discussed many costs that get overlooked, intentionally or unintentionally, by contractors in putting together job quotes. In the last article, we delved into three of the four basic components of a job price (materials, direct costs, indirect costs/overhead), with emphasis on developing a dollar-per-hour overhead amount to add to your labor costs in figuring job prices.
Now let's take a look at the fourth ingredient - profit. It's a mysterious word to many contractors, but all of you have at least heard rumors of its existence!