Overhead costs are real and must be taken into account.
Many
small companies guess or ignore burden rates because they find
these costs difficult to calculate.
QuoteCam includes a Burden Rate Calculator to determine costs incidental to the business.
The system audits the revenue potential of each job. It then factors the calculation into the quote to recoup these costs. Merely adding a profit margin to an artificially low cost is choosing to ignore the burden rates. Any theoretical profit must be used to pay overhead. What remains is the actual profit.
