00:01
Welcome back to Callahan’s
00:02
Welcome back to Callahan’s corner, where you ask the
00:03
corner, where you ask the questions we answered live here
00:05
questions we answered live here on Facebook. So what are the
00:06
on Facebook. So what are the questions submitted earlier
00:06
questions submitted earlier this week was how do you
00:09
this week was how do you utilize the direct cost feature
00:10
utilize the direct cost feature in the bottom Left-hand corner
00:13
in the bottom Left-hand corner of the Service, Autopilot
00:14
of the Service, Autopilot estimates So this is going to
00:16
estimates So this is going to be your job costing feature in
00:20
be your job costing feature in Service Autopilot so if you’re
00:22
Service Autopilot so if you’re using a more system a multiple
00:24
using a more system a multiple overhead recovery system the
00:26
overhead recovery system the direct cost is going to be part
00:29
direct cost is going to be part of your overhead recovery for
00:31
of your overhead recovery for your materials, your equipment
00:32
your materials, your equipment and subcontractors, and then
00:34
and subcontractors, and then I’m gonna show you how to break
00:35
I’m gonna show you how to break out your labor with. Burden
00:38
out your labor with. Burden separately on the actual job,
00:39
separately on the actual job, there are gonna be some pros
00:41
there are gonna be some pros and cons of using this direct
00:42
and cons of using this direct cost because it is static and
00:44
cost because it is static and only on the estimate and it
00:46
only on the estimate and it doesn’t report out in the
00:47
doesn’t report out in the report Center or any of the
00:48
report Center or any of the other analytics but if you want
00:50
other analytics but if you want that granularity I’m gonna show
00:52
that granularity I’m gonna show you some pros and cons on how
00:54
you some pros and cons on how to do it our pros and cons of
00:55
to do it our pros and cons of using it how to use it and then
00:57
using it how to use it and then if if you want to have a fully
00:59
if if you want to have a fully loaded overhead recovery
01:01
loaded overhead recovery system, that’s a little more
01:02
system, that’s a little more streamlined with no manual
01:03
streamlined with no manual entry and updating with less
01:05
entry and updating with less room for error. You how to do
01:07
room for error. You how to do that as well. so what I’m gonna
01:09
that as well. so what I’m gonna do is open up the screen here
01:10
do is open up the screen here and show you how this actually
01:12
and show you how this actually lays out. so as usual fashion,
01:15
lays out. so as usual fashion, we’re gonna bump this down.
01:17
we’re gonna bump this down. we’re inside Service Autopilot
01:18
we’re inside Service Autopilot right now and the first thing
01:21
right now and the first thing I’m gonna do is just go into a
01:22
I’m gonna do is just go into a and estimate and show you what
01:25
and estimate and show you what I’m actually talking about as
01:26
I’m actually talking about as direct costs so direct costs
01:29
direct costs so direct costs down here on the bottom and
01:31
down here on the bottom and that is really the area that
01:33
that is really the area that we’re talking about. so the
01:34
we’re talking about. so the question is what is it? How do
01:35
question is what is it? How do we utilize direct cost and what
01:37
we utilize direct cost and what what’s the foundation? Of that
01:39
what’s the foundation? Of that so, like I said, it’s a static
01:41
so, like I said, it’s a static number only works on the
01:42
number only works on the estimate. There’s no reporting
01:43
estimate. There’s no reporting around it. I can’t speak to
01:46
around it. I can’t speak to Vthree updates potentially
01:48
Vthree updates potentially maybe something like this will
01:49
maybe something like this will be locked in there and use but
01:51
be locked in there and use but I have not heard from Service
01:54
I have not heard from Service Autopilot, yay or nay but this
01:55
Autopilot, yay or nay but this is obviously in version two
01:57
is obviously in version two right now and it does work but
01:58
right now and it does work but it is a static numb. It doesn’t
02:00
it is a static numb. It doesn’t leave the estimates so I’m
02:01
leave the estimates so I’m gonna show you two ways of
02:02
gonna show you two ways of tackling your direct costs as
02:04
tackling your direct costs as far as an overhead methodology.
02:06
far as an overhead methodology. so the first thing we need to
02:07
so the first thing we need to do. Go to Service Autopilot
02:09
do. Go to Service Autopilot under the gear icon. and we’re
02:12
under the gear icon. and we’re gonna go into job accounting
02:15
gonna go into job accounting job costing, and this is where
02:16
job costing, and this is where the direct cost live. Now. it’s
02:18
the direct cost live. Now. it’s a little confusing because it’s
02:21
a little confusing because it’s not using the word direct cost
02:24
not using the word direct cost necessarily it’s job costing
02:25
necessarily it’s job costing the direct cost are right here
02:27
the direct cost are right here and what I’ve done is gone in
02:29
and what I’ve done is gone in and added a lawn care set up
02:32
and added a lawn care set up and we put it. 18 foot trailer
02:35
and we put it. 18 foot trailer 30 – Six -inch walk behind a 30
02:38
30 – Six -inch walk behind a 30 – six -inch laser Z the.
02:43
– six -inch laser Z the. Potentially the make up all the
02:45
Potentially the make up all the equipment that crew as well as
02:47
equipment that crew as well as a maintenance crew package.
02:48
a maintenance crew package. That’s a weed, wackers blowers
02:50
That’s a weed, wackers blowers and sticks. So I’ve broken this
02:51
and sticks. So I’ve broken this all down so if we go to the
02:53
all down so if we go to the example of the 2500 pickup
02:56
example of the 2500 pickup truck, This is what’s actually
02:58
truck, This is what’s actually behind the scenes. so I’ve
02:59
behind the scenes. so I’ve named it. I’ve put the
03:00
named it. I’ve put the description for the lawn mowing
03:02
description for the lawn mowing crew at the type is an asset
03:04
crew at the type is an asset and equipment that’s important
03:06
and equipment that’s important because on the next screen, I’m
03:07
because on the next screen, I’m gonna show you how we recover
03:07
gonna show you how we recover that as a percentage and it’s
03:11
that as a percentage and it’s active. so once you got that in
03:12
active. so once you got that in there and it saved but most
03:13
there and it saved but most people are wondering. Hey Mike.
03:14
people are wondering. Hey Mike. How did you come up with $5 and
03:16
How did you come up with $5 and 63 cents as a? Costing items so
03:19
63 cents as a? Costing items so what we’ve done is gone into a
03:22
what we’ve done is gone into a an equipment costing breakdown
03:24
an equipment costing breakdown for the more system very
03:26
for the more system very similar to Charles Vander Koy
03:27
similar to Charles Vander Koy system in his book that he
03:31
system in his book that he thought now what we’ve done
03:32
thought now what we’ve done here is I’ve got the example in
03:35
here is I’ve got the example in column here. so I’ve got that
03:36
column here. so I’ve got that shabby 20 eight 20 – 500 and
03:39
shabby 20 eight 20 – 500 and I’ve got the purchase price of
03:42
I’ve got the purchase price of 28 thousand five years, finance
03:44
28 thousand five years, finance six percent interest in the
03:46
six percent interest in the salvage area years per day
03:48
salvage area years per day hours per day and I’ve got And
03:51
hours per day and I’ve got And I’m including inflation to
03:52
I’m including inflation to three and a half percent. and
03:54
three and a half percent. and insurance and licensing and I’m
03:58
insurance and licensing and I’m going in to put miles per miles
04:01
going in to put miles per miles per gallon cost per per gallon
04:03
per gallon cost per per gallon in fuel cost number of oil
04:06
in fuel cost number of oil changes. What’s the cost of
04:07
changes. What’s the cost of that oil change that we’re just
04:08
that oil change that we’re just dialing into that system of
04:10
dialing into that system of what this truck is breaking
04:11
what this truck is breaking down number of tire changes per
04:13
down number of tire changes per year. the tire change intervals
04:16
year. the tire change intervals how many miles in the cost of a
04:19
how many miles in the cost of a tire replacement, so that’s
04:21
tire replacement, so that’s gonna do is get me an
04:22
gonna do is get me an additional maintenance cost
04:23
additional maintenance cost you’re basically an hourly
04:24
you’re basically an hourly cost. per hour. For this truck
04:29
cost. per hour. For this truck a $5 and 63 cents, and it also
04:31
a $5 and 63 cents, and it also gonna give me a yearly
04:33
gonna give me a yearly operating budget in a monthly
04:34
operating budget in a monthly operating budget. What’s that
04:35
operating budget. What’s that vehicle actually costing me so
04:37
vehicle actually costing me so I’m taking the hourly cost with
04:39
I’m taking the hourly cost with additional maintenance of kind
04:40
additional maintenance of kind of fudge factor in there for my
04:42
of fudge factor in there for my truck. my trailer. I’m gonna
04:45
truck. my trailer. I’m gonna scroll down and go into my
04:46
scroll down and go into my mowers. I’m grabbing my mower
04:48
mowers. I’m grabbing my mower and then I’m going in and
04:50
and then I’m going in and grabbing my maintenance package
04:52
grabbing my maintenance package so instead of getting stuck in
04:52
so instead of getting stuck in the minutia of doing each weed
04:55
the minutia of doing each weed whacker blower stick, we are
04:57
whacker blower stick, we are gonna lump them all together
04:58
gonna lump them all together and make a maintenance package.
04:59
and make a maintenance package. We’re taking these items from.
05:03
We’re taking these items from. Hourly perspective of what
05:04
Hourly perspective of what they’re costing us with
05:06
they’re costing us with maintenance and replacement and
05:07
maintenance and replacement and dropping them into service
05:09
dropping them into service autopilot. So I’ve got my truck
05:10
autopilot. So I’ve got my truck The description it’s going into
05:12
The description it’s going into the asset equipment type in a
05:16
the asset equipment type in a $5 and 63 cents is literally
05:18
$5 and 63 cents is literally what this truck is costing me
05:20
what this truck is costing me per hour with maintenance and
05:24
per hour with maintenance and financing and inflation. So
05:26
financing and inflation. So that’s right in there So $5 and
05:28
that’s right in there So $5 and 63 cents any large piece of
05:30
63 cents any large piece of equipment like a truck or
05:30
equipment like a truck or trailer by the Vander coin
05:32
trailer by the Vander coin model is going to be used on a
05:35
model is going to be used on a basically a curbside recovery.
05:36
basically a curbside recovery. so that’s gonna be recovered.
05:38
so that’s gonna be recovered. Percent of the time so what
05:42
Percent of the time so what we’re gonna do is build out
05:43
we’re gonna do is build out your equipment here and put it
05:46
your equipment here and put it into the job costing so we’re
05:47
into the job costing so we’re gonna build out each type of
05:50
gonna build out each type of piece of equipment and then we
05:53
piece of equipment and then we wanna go to fixed variable
05:54
wanna go to fixed variable overhead now Essay gives you
05:57
overhead now Essay gives you some examples of labor subs
05:58
some examples of labor subs equipment and product
05:59
equipment and product materials. So if you’re going
06:00
materials. So if you’re going by the Vander Coy model and
06:03
by the Vander Coy model and example materials are gonna be
06:05
example materials are gonna be 10 percent recovery equipment
06:06
10 percent recovery equipment is – five percent in
06:08
is – five percent in subcontractors a five percent
06:10
subcontractors a five percent so areas here that I would fill
06:13
so areas here that I would fill in and the Delta is 60 percent
06:15
in and the Delta is 60 percent for labor So now that once we
06:17
for labor So now that once we have these fixed and variable
06:20
have these fixed and variable items set up, we would probably
06:22
items set up, we would probably wanna go in and avoid manual
06:25
wanna go in and avoid manual work. So if we’re in the
06:27
work. So if we’re in the estimate we would have to add
06:29
estimate we would have to add in each piece of equipment so
06:31
in each piece of equipment so we have to add the trailer the
06:33
we have to add the trailer the mowers the truck and the
06:35
mowers the truck and the maintenance package now,
06:36
maintenance package now, obviously no one is gonna do
06:38
obviously no one is gonna do that as far as estimating. It’s
06:40
that as far as estimating. It’s it’s cumbersome. so what I’m
06:40
it’s cumbersome. so what I’m gonna recommend If you’re going
06:42
gonna recommend If you’re going to utilize the direct cost,
06:44
to utilize the direct cost, it’s build out a specific
06:45
it’s build out a specific template with this already.
06:47
template with this already. Reloaded so that is gonna be
06:48
Reloaded so that is gonna be going into. the gear icon and
06:55
going into. the gear icon and templates and what we’re gonna
06:56
templates and what we’re gonna do is build out a template with
06:58
do is build out a template with direct cost already built in
07:00
direct cost already built in there. so I’m gonna go in and
07:01
there. so I’m gonna go in and pull up my multiple overhead
07:03
pull up my multiple overhead recovery version of this that
07:05
recovery version of this that I’ve already built under the
07:06
I’ve already built under the more system and let me see if I
07:09
more system and let me see if I can find it here.
07:15
Believe this is it we’ll see if
07:17
Believe this is it we’ll see if not, I’ll show you how we built
07:18
not, I’ll show you how we built it out. It is so what I did is
07:20
it out. It is so what I did is I went in and added the item
07:22
I went in and added the item under the direct cost, but I’ve
07:25
under the direct cost, but I’ve comprised my truck here and set
07:27
comprised my truck here and set up so if you’re doing hardscape
07:29
up so if you’re doing hardscape or design build you don’t wanna
07:31
or design build you don’t wanna have to add each one of these
07:32
have to add each one of these so you can set your traditional
07:34
so you can set your traditional set up for this year or in
07:36
set up for this year or in mowing maybe but if we’re doing
07:38
mowing maybe but if we’re doing field mowing, so we have a
07:40
field mowing, so we have a special piece of equipment
07:40
special piece of equipment that’s going out for field
07:42
that’s going out for field mowing like an RC mower that’s
07:44
mowing like an RC mower that’s going on a sleep pill for a
07:45
going on a sleep pill for a certain job or a brush hog. We
07:47
certain job or a brush hog. We could add that in. But we wanna
07:50
could add that in. But we wanna have our main set up here on
07:52
have our main set up here on the direct cost already set up
07:54
the direct cost already set up and that’s gonna pull in the
07:55
and that’s gonna pull in the rates that we pulled in from
07:57
rates that we pulled in from our equipment costing sheet. So
07:58
our equipment costing sheet. So this is $5 and 63 cents is what
08:02
this is $5 and 63 cents is what that. truck is costing me to
08:06
that. truck is costing me to maintain and have it on the job
08:08
maintain and have it on the job and now that I’ve set my
08:10
and now that I’ve set my overhead recovery numbers as
08:11
overhead recovery numbers as the percentages it’s going to
08:14
the percentages it’s going to automatically do that now one
08:15
automatically do that now one of the defaults or I guess I
08:17
of the defaults or I guess I don’t wanna say downfalls and
08:18
don’t wanna say downfalls and one of the things to be aware
08:18
one of the things to be aware of is the quantity here.
08:22
of is the quantity here. Defaults to one so I’m gonna
08:23
Defaults to one so I’m gonna show you how to overcome that
08:25
show you how to overcome that issue here so the question was
08:28
issue here so the question was asked that Callahan’s, how do I
08:30
asked that Callahan’s, how do I build this out and utilize it?
08:31
build this out and utilize it? What’s it mean then I’m gonna
08:33
What’s it mean then I’m gonna show you how to avoid having to
08:34
show you how to avoid having to do all this if you want to have
08:36
do all this if you want to have it fully loaded on one line and
08:38
it fully loaded on one line and it’s everything loads it’s
08:38
it’s everything loads it’s kinda set it and forget it but
08:41
kinda set it and forget it but the idea here is that we’ve
08:42
the idea here is that we’ve built this template and we’re
08:43
built this template and we’re gonna hit save Now. what I’m
08:48
gonna hit save Now. what I’m gonna do is go into a test
08:50
gonna do is go into a test client and the work. That would
08:52
client and the work. That would go on here for a lawn mowing
08:54
go on here for a lawn mowing example, as we go into property
08:56
example, as we go into property measurements. Pull up the
09:00
measurements. Pull up the satellite and this is already
09:01
satellite and this is already been measured, so it saves some
09:02
been measured, so it saves some time, but we’re going in and
09:03
time, but we’re going in and the Google Earth or smart maps,
09:05
the Google Earth or smart maps, View And Service Autopilot, and
09:07
View And Service Autopilot, and we’re gonna get our turf square
09:08
we’re gonna get our turf square footage in line that all in
09:10
footage in line that all in there and so what we’re gonna
09:12
there and so what we’re gonna do is. I’m gonna see this all
09:15
do is. I’m gonna see this all out. in our turf was 9400
09:18
out. in our turf was 9400 square feet and you’re probably
09:20
square feet and you’re probably never ever gonna have this many
09:22
never ever gonna have this many custom fields but I didn’t test
09:24
custom fields but I didn’t test this before I came live so I’m
09:25
this before I came live so I’m just gonna make sure the turf
09:27
just gonna make sure the turf square footage is indeed saved
09:28
square footage is indeed saved here, but the idea is whether
09:29
here, but the idea is whether in your. Virtual you’re
09:31
in your. Virtual you’re measuring the lawn on smart
09:34
measuring the lawn on smart maps V one or two or Vtwo or
09:36
maps V one or two or Vtwo or Vthree. you’re labeling it your
09:38
Vthree. you’re labeling it your your color coding it for
09:39
your color coding it for simplicity. now the next thing
09:40
simplicity. now the next thing you wanna do is we’re going in
09:42
you wanna do is we’re going in and add an estimate. so I’m
09:43
and add an estimate. so I’m gonna show you how we break
09:44
gonna show you how we break this down on the direct cost
09:46
this down on the direct cost method and then I’m gonna show
09:47
method and then I’m gonna show you how to do it fully loaded
09:50
you how to do it fully loaded so behind the scenes here what
09:52
so behind the scenes here what we’ve really got going on is
09:54
we’ve really got going on is I’m gonna go in the templates
09:55
I’m gonna go in the templates and I’m gonna grab my mores my
09:57
and I’m gonna grab my mores my multiple overhead recovery
09:59
multiple overhead recovery would direct. Example. And it’s
10:03
would direct. Example. And it’s gonna load my lawn mowing in.
10:07
gonna load my lawn mowing in. here so obviously this price is
10:09
here so obviously this price is a bit fictitious. so I’m gonna
10:11
a bit fictitious. so I’m gonna drive in a 5000 square feet,
10:11
drive in a 5000 square feet, which would be about a 40 – $5
10:14
which would be about a 40 – $5 cut point 25 million hours, and
10:16
cut point 25 million hours, and I’m gonna put the drive time in
10:18
I’m gonna put the drive time in here for this by putting in the
10:20
here for this by putting in the number one. it’s calculating
10:23
number one. it’s calculating the price on site and the the
10:25
the price on site and the the time for mobilization to that
10:27
time for mobilization to that and the point 12 man hours now
10:30
and the point 12 man hours now what we’ve got here is our
10:31
what we’ve got here is our direct costs are already loaded
10:33
direct costs are already loaded but what it’s doing is it’s
10:36
but what it’s doing is it’s Basically one hour that is not
10:39
Basically one hour that is not what you want so you wanna get
10:39
what you want so you wanna get down and get our Total time and
10:43
down and get our Total time and budget hours for on site and
10:44
budget hours for on site and mobilization of point 37.
10:49
And put that in there for all
10:50
And put that in there for all of our equipment now if you’re
10:54
of our equipment now if you’re recovering your maintenance
10:54
recovering your maintenance package separately for just
10:57
package separately for just time or utilization, you can
10:58
time or utilization, you can manipulate this. but for basic
11:00
manipulate this. but for basic example, we’re gonna cover all
11:02
example, we’re gonna cover all of these direct costs to the
11:04
of these direct costs to the point. 37 man hours here. and
11:07
point. 37 man hours here. and then we marked this to draft a
11:09
then we marked this to draft a quote. All the information
11:10
quote. All the information comes in. So I’ve got 5160 for
11:13
comes in. So I’ve got 5160 for revenue. I’m gonna cost of $20
11:15
revenue. I’m gonna cost of $20 and 40 cents and. At the end of
11:20
and 40 cents and. At the end of the day with my overhead
11:22
the day with my overhead recovery estimated gross profit
11:24
recovery estimated gross profit is 3120 120 overhead cost is $2
11:28
is 3120 120 overhead cost is $2 and 92 cents right here. That’s
11:30
and 92 cents right here. That’s right from here. We’ve got an
11:32
right from here. We’ve got an estimated net profit of 28
11:34
estimated net profit of 28 dollars and 28 cents at 54
11:36
dollars and 28 cents at 54 percent margin. Obviously this
11:38
percent margin. Obviously this is a fictitious pricing, but
11:40
is a fictitious pricing, but these are the numbers how they
11:41
these are the numbers how they go in here and if you’re
11:42
go in here and if you’re wondering how this math is
11:44
wondering how this math is going on here I’m gonna just
11:45
going on here I’m gonna just pull out my phone, real quick
11:46
pull out my phone, real quick and and and calculate it so I
11:48
and and and calculate it so I can show you what this. Looks
11:50
can show you what this. Looks like but if we take the point,
11:52
like but if we take the point, 37 man hours here in multiply
11:54
37 man hours here in multiply that times the $5 and 63 cents
11:58
that times the $5 and 63 cents that gives us the $2 and eight
12:00
that gives us the $2 and eight cents, which is right here for
12:02
cents, which is right here for the total. now If you remember
12:04
the total. now If you remember our equipment is being
12:06
our equipment is being recovered at 20 – five percent
12:08
recovered at 20 – five percent for that overhead recovery So
12:11
for that overhead recovery So time point 25, That is the
12:15
time point 25, That is the 52 cents that you see here. So
12:17
52 cents that you see here. So that’s the overhead recovery
12:18
that’s the overhead recovery that As he is doing exactly
12:21
that As he is doing exactly what it should be doing, but we
12:23
what it should be doing, but we do need to update the quantity
12:24
do need to update the quantity here to reflect the total
12:26
here to reflect the total budgeted hours cuz it’s
12:27
budgeted hours cuz it’s defaulting to the number one So
12:28
defaulting to the number one So now we’ve got that overhead
12:31
now we’ve got that overhead recovery. We can save it and
12:32
recovery. We can save it and send it now. That is how we use
12:34
send it now. That is how we use direct cost now another way of
12:35
direct cost now another way of doing this and you’re maybe
12:37
doing this and you’re maybe looking like how does that
12:39
looking like how does that work? What goes on the top line
12:40
work? What goes on the top line now if you’re using direct
12:42
now if you’re using direct cost, the only thing that’s
12:43
cost, the only thing that’s left in that recovery is your
12:45
left in that recovery is your labor with labor burden so
12:47
labor with labor burden so labor with labor burden. It is
12:50
labor with labor burden. It is going to go in and take the
12:53
going to go in and take the hourly wage. of your employee
12:56
hourly wage. of your employee or the hourly wage average wage
12:58
or the hourly wage average wage so the average wage of that
13:00
so the average wage of that crew with percentage of
13:02
crew with percentage of overtime. So this example, I’ve
13:03
overtime. So this example, I’ve got average wage with overtime
13:05
got average wage with overtime to 1360 – five and then I’ve
13:07
to 1360 – five and then I’ve got my labor burdens of
13:10
got my labor burdens of unemployment state employment
13:11
unemployment state employment comp liabilities, some other
13:13
comp liabilities, some other factors here as a percentage of
13:14
factors here as a percentage of the dollar. This is 19 percent
13:15
the dollar. This is 19 percent so if I plug in the 1360. An
13:20
so if I plug in the 1360. An hourly rate with burden an
13:21
hourly rate with burden an hourly rate with OT, so we
13:24
hourly rate with OT, so we would be basically. taking the
13:28
would be basically. taking the cost with burden of 1624. and
13:32
cost with burden of 1624. and dropping that into the pricing
13:33
dropping that into the pricing matrix. so our labor with labor
13:36
matrix. so our labor with labor burden our cost per hour is.
13:41
24. right here in the essay
13:44
24. right here in the essay blueprint the blueprint and
13:46
blueprint the blueprint and let’s say we’re charging 50
13:47
let’s say we’re charging 50 bucks per hour and from one to
13:49
bucks per hour and from one to 5000 square feet. It is 45
13:52
5000 square feet. It is 45 Bucks. That’s our base price.
13:57
Bucks. That’s our base price. And in the client template
13:58
And in the client template here, I said that was point 25
14:00
here, I said that was point 25 hours, so I’m just gonna kinda
14:01
hours, so I’m just gonna kinda reverse engineer this so you
14:02
reverse engineer this so you can kinda see how this would
14:03
can kinda see how this would play out.
14:10
That’s gonna give us the best
14:11
That’s gonna give us the best price and every 5000 every
14:13
price and every 5000 every thousand over a base price of
14:15
thousand over a base price of 5000. maybe is $3 more. And if
14:20
5000. maybe is $3 more. And if we are divided up by 50, it is
14:23
we are divided up by 50, it is point 06, man hours and $97 of
14:25
point 06, man hours and $97 of labor and labor burden. That is
14:27
labor and labor burden. That is the example that you are
14:29
the example that you are looking at here for the direct
14:31
looking at here for the direct cost. so you’re only looking at
14:33
cost. so you’re only looking at labor and labor burden the
14:35
labor and labor burden the other way of doing it is going
14:36
other way of doing it is going in and building out your mowing
14:38
in and building out your mowing crew. and same exact equation
14:43
crew. and same exact equation far as.
14:48
The math but this is different
14:51
The math but this is different so if we’re charging 50 bucks
14:52
so if we’re charging 50 bucks an hour and let’s say our total
14:54
an hour and let’s say our total break even is $36 per man hour,
14:57
break even is $36 per man hour, including labor and labor
14:59
including labor and labor burden and our fixed generalist
15:01
burden and our fixed generalist of cost and we’ve already
15:02
of cost and we’ve already recovered on an hour later
15:04
recovered on an hour later material equipment and subs.
15:05
material equipment and subs. You could say, okay, on average
15:07
You could say, okay, on average that is $36 break even. and
15:12
that is $36 break even. and this is going to
15:16
multiply the point 25 million
15:18
multiply the point 25 million hours times to 30 – six you’ve
15:20
hours times to 30 – six you’ve noticed instead of $4
15:21
noticed instead of $4 break-even cost just on labor
15:23
break-even cost just on labor and labor burden are fully
15:24
and labor burden are fully break even number with the
15:26
break even number with the overhead recovery of everything
15:28
overhead recovery of everything that’s indirect cost fully
15:29
that’s indirect cost fully loaded. Here’s $9 so everything
15:31
loaded. Here’s $9 so everything The same but our numbers as far
15:34
The same but our numbers as far as budgeted costs are different
15:36
as budgeted costs are different different so after talking
15:37
different so after talking Service Autopilot and their
15:39
Service Autopilot and their development team there is no
15:40
development team there is no negative as far as I’m
15:42
negative as far as I’m concerned to have this fully
15:43
concerned to have this fully loaded number on the Service,
15:46
loaded number on the Service, Autopilot estimate and it saves
15:47
Autopilot estimate and it saves you the step of direct costs
15:49
you the step of direct costs now in design build you may
15:51
now in design build you may need that granularity and
15:51
need that granularity and that’s perfect, but if you’re
15:53
that’s perfect, but if you’re in general maintenance or
15:55
in general maintenance or estimating a home cleaning
15:55
estimating a home cleaning things like that as far as I’m
15:59
things like that as far as I’m concerned, I don’t see any
16:00
concerned, I don’t see any reason to take it and recreate
16:02
reason to take it and recreate the. Far as having to go out.
16:06
the. Far as having to go out. and manipulate these direct
16:08
and manipulate these direct costs and update this each
16:08
costs and update this each time. I would rather have it
16:11
time. I would rather have it fully loaded up top here so
16:13
fully loaded up top here so literally all you do is say
16:14
literally all you do is say quote and it’s already in there
16:16
quote and it’s already in there and you know you’re good now if
16:18
and you know you’re good now if Vthree has some evolutions of
16:20
Vthree has some evolutions of direct costs and some things
16:23
direct costs and some things around us where this quantity
16:24
around us where this quantity field is dynamic and matches up
16:26
field is dynamic and matches up to the budget of hours, then
16:27
to the budget of hours, then there may be a whole different
16:28
there may be a whole different conversation, but as it is
16:29
conversation, but as it is right now, I’m recommending
16:31
right now, I’m recommending fully loading that top number
16:32
fully loading that top number with labor and labor burden and
16:35
with labor and labor burden and overhead recovery. So it’s your
16:36
overhead recovery. So it’s your total break even so all at the
16:37
total break even so all at the bottom. All we have is. But if
16:40
bottom. All we have is. But if you would like to have that
16:43
you would like to have that granular direct cost, I would
16:44
granular direct cost, I would not leave it open to the
16:46
not leave it open to the estimated to add the items pre
16:48
estimated to add the items pre build a template that fully
16:49
build a template that fully loads all those pieces of
16:50
loads all those pieces of equipment train them to update
16:52
equipment train them to update the quantity and then if you
16:53
the quantity and then if you have an ancillary piece of
16:55
have an ancillary piece of equipment, design build or
16:56
equipment, design build or something else, that’s not used
16:58
something else, that’s not used all the time. Then you add that
17:00
all the time. Then you add that in I already have that
17:01
in I already have that preloaded so comment your
17:03
preloaded so comment your questions drop below Callahan’s
17:04
questions drop below Callahan’s corner. You ask the questions
17:05
corner. You ask the questions we answered live right here on
17:06
we answered live right here on Facebook all things business.
17:09
Facebook all things business. Autopilot but really a lot of
17:12
Autopilot but really a lot of questions around this, So I
17:12
questions around this, So I wanted to really demystify it,
17:14
wanted to really demystify it, but as of today, August 2020
17:18
but as of today, August 2020 those things here for direct
17:20
those things here for direct costs are completely static to
17:21
costs are completely static to just hear and hear and they do
17:23
just hear and hear and they do not translate into the report
17:25
not translate into the report Center jobs or anything else so
17:28
Center jobs or anything else so far as I’m concerned I would
17:29
far as I’m concerned I would rather minimize the step
17:31
rather minimize the step streamline the process for your
17:32
streamline the process for your office, Your VA and if you are
17:34
office, Your VA and if you are doing design build there may be
17:37
doing design build there may be an argument. Some of this stuff
17:39
an argument. Some of this stuff on the fly, if we’re using an
17:40
on the fly, if we’re using an excavator Kidd that
17:42
excavator Kidd that traditionally isn’t on that
17:43
traditionally isn’t on that equipment set up and everything
17:44
equipment set up and everything else. I’m gonna recommend it as
17:45
else. I’m gonna recommend it as of at least August 2020 in
17:47
of at least August 2020 in Vtwo, you wanna keep that fully
17:49
Vtwo, you wanna keep that fully loaded break even for that
17:51
loaded break even for that profit margin on top to avoid
17:54
profit margin on top to avoid extra steps and streamlining
17:55
extra steps and streamlining that that estimating and job
17:58
that that estimating and job costing process in your
17:59
costing process in your estimates so feel free to drop
18:02
estimates so feel free to drop any questions on the live video
18:03
any questions on the live video here We’ve got a few people
18:04
here We’ve got a few people watching otherwise on the
18:06
watching otherwise on the recorded version if you wanna
18:07
recorded version if you wanna drop a question or two on here
18:10
drop a question or two on here I’ll watch it for the next 24.
18:12
I’ll watch it for the next 24. But a lot of questions around
18:16
But a lot of questions around overhead recovery the multiple
18:17
overhead recovery the multiple overhead recovery system where
18:18
overhead recovery system where we’re going out and creating a
18:21
we’re going out and creating a production rate based
18:21
production rate based estimating system, and that’s
18:23
estimating system, and that’s what we did in my company right
18:25
what we did in my company right to the Charles Vander Corp
18:26
to the Charles Vander Corp model, and I had some great
18:28
model, and I had some great success with it and this is how
18:30
success with it and this is how we can use Service Autopilot to
18:32
we can use Service Autopilot to implement that job costing a
18:33
implement that job costing a direct cost feature right in
18:35
direct cost feature right in the two so come questions right
18:37
the two so come questions right below. Callahan’s Corner USA
18:38
below. Callahan’s Corner USA Questions We answer them live
18:39
Questions We answer them live here on Facebook How to use the
18:41
here on Facebook How to use the direct. Feature job costing on
18:44
direct. Feature job costing on estimates inside Service