360 DifferenceThe Capacity Based Markup Worksheet
(also known as the " PILAO" Worksheet)
An Excel Spreadsheet for correctly determining a Loaded Labor Rate and or an appropriate Labor Markup for Contractors Using a Capacity Based (aka PROOF/Indexed/Labor Allocated Overhead) Markup Methodology.
To learn more about Markup try searching the Developer’s Blog here for books and article links with the tag Markup.
Introduction
( Introduction | Overview & Features | Pricing | Comments )
As part of a discussions in the Journal of Light Construction Online Forums back in 2004 regarding use of what is known as a Capacity Based Based Markup (also sometimes known as PROOF or Indexed or Labor Allocated Overhead markup so hence the PILAO acronym for the worksheet) I created this Excel Workbook.
For more information regarding using a PROOF/Indexed/Labor Allocated Overhead markup method in general click to read the Paradigm-360 Quietly Re-Thinking Out Loud Blog Post: The Potential Problem Using a Traditional Volume Based Markup : Comparing the Traditional Volume Based Markup vs. a Capacity Based Markup Methodology and the links there to other articles on the web.
Overview & Features
( Introduction | Overview & Features | Pricing | Comments )
The Capacity Based Markup Worksheet works by allowing the user to enter all the real or estimated overheads costs into the proper categories for allocation distribution (Fixed
and Variable Overhead) and then using those figures to calculate an appropriate Loaded Labor Rate for each individual employee.
The Capacity Based Markup Worksheet Toolset:
The Introduction
The Introduction Worksheet provides a basic overview of the spreadsheet’s framework and navigation links to the individual worksheets.
(click to view the worksheet image full sized)
The Labor Cost Worksheet
The Labor Cost Worksheet
With the Labor Cost Worksheet in the yellow shaded data entry cells you set the wage rates, employer costs, benefit costs, and other miscellaneous Variable Overhead Expenses you want to cover such as truck payments, vehicle maintenance, small tools, etc.
(click to view the worksheet image full sized)
The Billable vs. Non-Billable Hours Worksheet
On the Bilabial vs. Noninflammable Worksheet you account for items such as paid holidays vacation time, training, downtime and other non-billable but paid hours that you and your employees will generate.
(click to view the worksheet image full sized)
The Fixed Overhead Costs Worksheet
With the fixed Overhead Worksheet you enter you cost or budgets for all of your Fixed Overhead items such as Capital Tools, General Office Expenses, Marketing, Insurance , Professional Fees, Local & Regional Business Taxes., Loan Payments, Contingency, Owners Compensation, Sales Cost and the Net Profit you want your business to generate.
(click to view the worksheet image full sized)
The General Summary Information Worksheet
The General Summary Information Worksheet displays the calculated Labor Billing Rates for you and your employees along with a breakdown based on all of the entered data as to what your costs and projected Net Profit are per employee and/or per hour, per day, per week, per month or per year.
(click to view the worksheet image full sized)
The Owners Information Worksheet
And after setting up and answering the questions in the yellow shaded cells the Owners Information Worksheet displays the Owner’s Compensation package based on all the data entered.
(click to view the worksheet image full sized)
Pricing
( Introduction | Overview & Features | Pricing | Comments )
The Capacity Based Markup Worksheet
Capacity Based Markup worksheet is an simple Excel workbook with no macros so it works with either Macintosh or Windows versions of Excel and can even be opened and used with Apple’s iWork Numbers application too.
Licensed users of the Capacity Based Markup Worksheet will also receive a free upgrade to version 2.0 when it becomes available in the spring of 2010.
$10.00 — Purchase Your Copy Via Paypal
On recieving notification of your order from PayPal we will make every effort to send your download link to the Capacity Based Markup Worksheet via the email address on your PayPal account ASAP (generally within 1 to 24 hours)
Revision History
- 3/12/2004 12:37pm First draft Version 1.1 published
- 3/12/2004 6:15pm Version 1.2 published. Added a Contingency line item to the fixed Overhead Worksheet section of the workbook and some minor spreadsheet housekeeping chores were taken care.
- 3/12/2004 6:15pm Version 1.3 published. 1) Reordered the two categories on the top of the Labor Cost Worksheet so that Employee Wage Information would be entered before the Yearly Work Schedule Information. 2) Made the separation of the the Billable vs. Non Billable Hour Computations from the basic Cost information distinct.
- 3/13/2004 3:25pm Version 1.4 published 1) Split what was the Labor Worksheet into separate worksheets now called the Labor Cost Worksheet and the Billable vs. Non-Billable Hours Worksheet 2) Added comments to the cells on those worksheets to help clarify what they are to the user and help with data entry. 3) Separated the Owners Compensation Information out as it’s own separate worksheet.
- 3/13/2004 10:42pm Version 1.5 published 1) Added comments to the cells on the Overhead Worksheet
- 3/14/2004 10:22am Version 1.6 published
- 3/13/2004 6:22pm Version 1.7 published
- 3/15/2004 7:06pm Version 1.8 published
- 3/25/2008 5:05pm Version 1.9 published
Comments
( Introduction | Overview & Features | Pricing | Comments )
