Resources

Guides Behind the Numbers

Each guide explains the concept behind a cluster of engines in plain English, worked example included. Every figure comes from the same tested calculation the engines use, so the explanation and the tool always agree.

14 resources.

Guides

Plain-English explainers for the concept behind a cluster of engines, with a worked example.

GuideThe Loaded Labor Cost GuideA $20 wage is not a $20 cost. This guide shows what burden actually pays for, and why bidding off the wage instead of the loaded rate quietly loses money on every job.GuideThe Markup vs. Margin GuideUsing your target margin as a markup is the single most common contractor pricing mistake. This guide shows exactly what it costs on a real job, in dollars.GuideThe Overhead and Owner Income GuideCovering overhead is not the same as paying yourself. This guide shows both numbers side by side, and how far apart they usually are.GuideThe Employee vs. Subcontractor Staffing GuideStaffing has two different questions hiding inside it: who should do ongoing work, and how should a short-term gap get covered. This guide answers both with worked numbers.GuideThe Equipment and Truck Stock GuideTwo capital decisions that both come down to the same question: does the fixed cost of owning something pay for itself against the alternative. Worked through for equipment and truck stock.GuideThe Scope and Warranty Cost GuideChange orders, trip charges, and callback reserves are three places a contracting business quietly loses (or overcharges) money if they are priced by feel instead of by the numbers.GuideWhen to Hire Your Next CrewAt 95% utilization, overtime costs $5.42 more per billable hour than a new hire would. A $240,000-revenue crew pays for its own startup cost in 5 months. Both numbers say the same thing at once: hire now.GuideThe Management Layer LadderEvery management hire, from a first working foreman to an operations manager, answers the same question: what is the owner's time actually worth, and does this hire free up more of it than it costs.GuideBranch Expansion: The Break-Even Nobody RunsA second location is a bigger bet than a second crew: $150,000 to start, $180,000 a year in new overhead, and 24 months to break even even when the case is viable, not strong. Running the cash-runway math before signing a lease is what turns a viable case into a survivable one.

Visual Resources

One chart, one idea.

VisualBuilding a Cash Buffer That Covers PayrollA slow month should never mean scrambling to make payroll. A 4-person crew needs $20,800 set aside to cover 4 weeks with zero incoming revenue, a number that scales exactly with crew size and however many weeks of cover feel safe.VisualLTV to CAC: The Marketing Spend RatioThe same $350 spent to acquire a customer is a strong bet or a weak one depending entirely on what that customer is worth over time. One ratio settles it, and it moves fast.VisualCrew Utilization: The Idle Capacity CostA crew billing 1,500 of 2,000 available hours is running at 75% utilization, which sounds fine until it is priced: 500 idle hours per worker at a $32.50 loaded rate is $32,500 a year, paid whether or not a single job used it.

Reference

Lookup tables and checklists.

ReferenceHVAC and Plumbing Add-On RevenueMaintenance agreements and inspection plans look like easy recurring revenue until the visit cost, materials, and admin overhead are actually totaled up. A $220 HVAC agreement clears only a 14.77% margin, below a 20% target, once the real annual cost is counted.ReferenceDeposits, Retainage, and Payment TermsThree separate contract terms, receivables timing, deposit size, and retainage, each tie up cash in a different, quantifiable way. Tightening payment terms alone from 45 to 15 days frees $49,315 in cash on $600,000 of annual revenue.