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Add Profit, Overhead, and Round for Final Bid

1:11
2:07
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At 1:11 in

How to Bid Steel Edging

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What happens here

To ensure profitability and cover indirect business expenses, add a percentage for profit and overhead to the total direct cost. The video suggests adding approximately 10% initially. So, $4.41 per linear foot plus 10% ($4.41 * 1.10 = $4.851). Then, for customer simplicity and to potentially increase profit margin, round this figure up to an easily digestible number. The video rounds to $5.50 per linear foot for steel edging, compared to $3.50 per linear foot for vinyl edging. This final rounded price is what you will present to your customers.

Goal: Establish a final, customer-friendly bid price per linear foot that includes profit and overhead.

What they say

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per linear foot. Now profit and overhead don't forget the 10% we add on to this. That comes out to be right around what is it? 50 cents a linear foot. But we're going to make all of our numbers round and even. If we stuck with that number, it' be 535. But I want our customers to have simple choices. Remember, everything breaks down to three simple choices. So, so far we have blackjack edging at $3.50 a linear foot. Now, steel edging will be in comparison about $5.50 a linear foot. Technically, it should be $5.35 a linear foot, but we don't want to make it confusing. So, we're going to make it simple for our customers. We're going to bump it up a little bit more and put some more change in our pocket at the same time.

Auto-generated from the video audio.