£50
If you're a Subcontractor that isn't sure what to add to costs at tender and just follow other companies on what you've heard is "going rates", then this sheet is for you!
Simply add you annual turnover, head office overheads and the percentage you'd like to recover as net margin - so for example £1m turnover, £70k overheads per year and you want 10% net (£100k on £1m turnover).
As soon as you have this you can update it in seconds as your company changes.
Only update yellow boxes, blue are automatic. When done you'll see a percentage that you need to add to net costs when pricing work.
Note this is the minimum to generate that margin - it does not take account of risk, delays, varying costs, overhead change etc etc etc. It's a snapshot in time so you still need to keep your eye on the ball!
But I often see clients add say 20% because others do and expect at least 10% net. But then they may have a 12% overhead or similar. From the start, they're doing less profitable work than what you thought!