Escape the Overhead Shadow
Your "fixed costs" exist whether you're swinging a hammer or not. To escape the **Fake Profit Trap**, you must recover every shop light and insurance premium on every bid.
Overhead % Calculator
Rent, Insurance, Software, Admin
"To stay profitable, you must recover this 17.0% on every single job before you count net profit."
What Counts as Overhead?
Overhead consists of all the expenses required to run your business that cannot be directly attributed to a specific project.
Facility
Rent, utilities, shop maintenance, and office supplies.
Protection
General liability, professional insurance, and software licenses.
Admin
Bookkeeping, marketing, and non-billable staff salaries.
The Uncomfortable Truth about Fixed Costs
Most contractors treat overhead as "the cost of doing business." It isn't. It's a **Direct Debt** to your project profit.
The Costly Mistake: Death by a Thousand Subscriptions
Adding a new truck or a second office staff member changes your **Break-Even Point** instantly. If your overhead increases by $5,000/month and your markup stays at 30%, you need an additional $16,000 in monthly sales just to stay where you are.
Action: If your Overhead > 25% and your Net Profit < 5%, stop buying tools and start cutting Admin "bloat."
Industry Benchmarks (2026 Strategy)
While every business is unique, these brackets define your strategic position in the **Fake Profit Trap**:
- Elite Ops (10-15%): Lean, high-production velocity. High net profit potential.
- Growth Stage (15-25%): Standard for multi-crew remodeling. Requires strict job costing.
- Danger Zone (35%+): You are likely subsidizing your business with your own personal savings.
The Profit Blueprint Newsletter
One actionable tip every Tuesday to help you track labor, protect margins, and grow your remodeling business.
100% Signal. 0% Spam. Unsubscribe anytime.