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Pricing
Post by dennisrmay on Nov 30th, 2009, 7:06pm
When I am pricing cabinets, doors can cost different amounts how do I charge more for doors. Is there something in the program to chainge the price if the doors are up graded or do I need to chainge the per lineal foot price for the cabinets to get more for upgrading doors.
Re: Pricing
Post by Jeff on Dec 1st, 2009, 04:23am
I dont use program for pricing anymore, but when I did this is what I did.
Use the software for pricing out the boxes only as this is a constant regardless of what the doors are. Then simply add the cost of the doors to the cost of the boxes.
Re: Pricing
Post by NickB on Dec 1st, 2009, 05:07am
Jeff what do you do for pricing now??
Nick
Re: Pricing
Post by Jeff on Dec 1st, 2009, 05:20am
I have created a job costing spreadsheet. I fill it in to quote, then fill it in again as I am doing the job. It allows me to track my time, my material costs, my overhead, and most importantly it tells me if the job was profitable.
By using the form to quote and track the job costs, it also allows to check the accuracy of your quotes.
If you go to the CWB magazine website and look under archives for management strategies, Anthony Noel wrote a 5 piece article on job costing. It was called "5 easy pieces" and I believe it was from around July of last year. Look it up, it is a very worthwhile read. I have taken his spreadsheet and modified it a little to better suit my quoting process. Send me an email and I will forward you a copy of my spreadsheet if you would like.
Re: Pricing
Post by NickB on Dec 1st, 2009, 05:38am
Thanks Jeff just sent you an email...
Nick
Re: Pricing
Post by Jeff on Dec 2nd, 2009, 1:45pm
I have had a few people ask me for this now, so I am going to post it here for all to see. I have emailed Rob the files and hopefully he can host them and post a link. Below is quick instructions on how to use it. It was created from Anthony Noels article on Job Costing called 5 easy pieces that was in CWB magazine. You can find the article at the CWB magazine website, or hopefully rob will post it as well and maybe make this a sticky at the top of the forum so it doesn't get lost in cyberspace
Anyways.....
I have included the sheet I use for estimating and also an actual one from a recent job so you can get the idea.
My actual spreadsheet "Overhead Rate" links to another excel file that calculates my overhead so it is automatically adjusted when I update my overhead costs. For the attached spreadsheets, I just threw the number $20 in. You need to adjust this to whatever your actual overhead rate is per hour.
In the total including tax column, you will see in the formula *1.13 where the .13 represents our 13% sales tax we pay. You need to change the .13 to represent the sales tax you pay on purchased goods.
Hours and hourly rate columns takes info from sheet 2 (Time Sheet). If you have more than 1 employee, you need to add more tables on the Time Sheet page and modify the formula on the Cost Sheet page so there is a row for each employee.
You may have to do some tinkering with the formulas etc depending upon how many employees you have etc, but its all pretty basic excel commands.
Heres how it works:
Design in cabinet planner. Cabinet planner will then tell you how many sheets of wood you need and how many square feet of doors you have. Use your best judgement to determine how many of each type of wood you need and fill it in. Same goes for doors. There may be some extra square footage for doors and sheet goods that cabinet planner has not accounted for, so use your best judgement and add whatever you think. Fill in your estimates for sheet goods, hinges, slides, and basically everything the job will need. I have the items I commonly use in my estimate sheet so I just enter quantities and add anything else that may be special and job specific.
Then go to the time sheet, and list out the steps involved and your time estimates.
Now go back to sheet 1 and enter an amount billed. Adjust the amount billed up or down until the Profit or loss cell reads a number you like and this is the amount you quote the customer. You will see in the materials column I have 5% tacked on to the bill to cover misc items. You may want to leave this, delete it, or adjust it to suit your specific business.
Now if you get the job
Start with a blank form and religiously track your time and materials.
When the job is done, you will know exactly how much money you made or lost, and you will be able to identify areas that took longer than you estimated and materials that cost more or less than you estimated. After you have run a couple jobs using this, quoting will become extremely fast and accurate as you have a history for each process.
I have also created a separate spreadsheet that compares the main columns for easy review at the end of the job and at the end of the year. It is attached as well. You simply just take numbers from the job costing sheets and enter them into the profit tracking sheet. Gives a quick snapshot of all your jobs.
Hope this helps some of you out. I should also note that Anthony Noel should take all the credit for this. I have just summarized his work above and attached the spreadsheets so you dont have to create them yourself.
Re: Pricing
Post by Rob on Dec 2nd, 2009, 2:07pm
http://cabinetplanner.com/files/Cost_Accounting_Anthony_Noel.doc
http://cabinetplanner.com/files/Job_Costing_-_Estimate.xls
http://cabinetplanner.com/files/Job_Costing_-_Example_Job.xls
http://cabinetplanner.com/files/PROFIT_Tracking.xls
Re: Pricing
Post by NickB on Dec 2nd, 2009, 4:09pm
Jeff thanks again for sharing this.
I think this is going to help me more than you know! 
Sometimes I forget I started this to make money at something I love doing. Now to stop doing charity work and start making money!!!! 
Nick
Re: Pricing
Post by lsrode on Apr 1st, 2013, 1:05pm
After using Cabinet Planner for years I have always wondering why cabinet were costing more than my estimated cost. I am strictly a custom millwork builder. The costumer knows up front that I only work by the hour and what my hourly rate is and minimal percentage on materials.
This is only with the millworks actual cost using raised paneled door and drawer fronts. I have a per sqft price entered in the raised panel cell on the price page believing that was in reference to the raised panel doors drawer fronts.
I was trying to compare the price difference between raise and slab doors & drawer fronts I found out that there wasn’t a price change between the two.
Needless to say I was livid! Thus joined the forum for information.
Does the raised panel price only reflect the custom raised panel cost from the menu bar at the top of the main program page?
I like CP software for design and the forum. I just wish that it had the ability to inject the individual door prices per square foot price.
Thank you for you allowing me to express my concerns. lsrode