Note> Model for illustrative purposes only

< Enter your division names (Maintenance, Snow, etc.)

< Enter your revenue budget by Division

< Enter your costs for each area

< Enter overhead figures (as best you can) for each division; the sum must equal your total overhead

*See 'Chart of Accounts' tab for overhead definitions

< Enter labor hours paid for each division here (from your payroll reports); if possible,

break out job hours versus indirect hours (non job-related) before entering

< Make sure the subtotals for each division are accurate and sum to the total

(Realize Rate divided by Wage Rate)

(Revenue divided by Overhead Expense)

Now it's time to build a new budget to increase your net margins. You will have to make assumptions about several inputs for your new budget and plan,

including sales growth by division. labor cost increase, overhead increase relative to sales growth (this must always amount to less than the total), and pricing

and margins by allocating overhead across divisions and applying an estimating bidding margin (this is a trial-and-error process). Follow the green cells to

Calculate Your New Budget/Plan

< 1. Enter your desired sales growth percentage for each of your divisions

< 2. Enter your assumed labor increase, on average, for each division (typically 0-4%)

< 3. Enter your indirect hours as a percentage of the total paid hours for the crew for each division

(typical range is 10-15%; however, enter your number)

< Enter your total overhead increase here (must be at least 2% less than your total sales increase;

this is typically obtained from a budget worksheet (see 'Chart of Accounts' tab)

5. Overhead Allocation (must be 100%) >>

< Allocate your overhead across divisions (must total 100%); this will drive your pricing strategy

< Use these margins to calculate your final pricing strategy after allocating overhead

< Enter figures for overhead and margins, using trial and error, to arrive at a pricing model showing

the absolute bid price increase required year over year (in relation to your current estimating model)

New Pricing (increase or Decrease from last year)

< This is based on your labor cost and overhead allocation

< This is based on your desired sales growth