## Determining How Much Of A Sale Is Profit (- Overhead)?

By kathik Updated 13 May 2013 , 7:51pm by Ms Jenn

kathik Posted 19 Jul 2007 , 2:46pm
post #1 of 25

Okay, I know that sounds simple, but I need to figure out how much to deduct for overhead (electricity, etc.) and insurance and everything else. Is there a formula? I generally take my costs and multiply by three to get a price, but is there away to estimate to how much is profit?

Thanks,
Kathi

24 replies
Doug Posted 19 Jul 2007 , 3:37pm
post #2 of 25

try this little excel spreadsheet and see if it helps any.

it estimates the overhead based on the items listed.

it does it PER CAKE

(feedback for improvements -- within my limited math abilities -- are most welcome!!)

------------

EDITED -- uploaded version w/ columns set wider for larger numbers

kathik Posted 19 Jul 2007 , 6:07pm
post #3 of 25

You're incredible, Doug! Just one question. When I changed the numbers for my own needs the total shared expenses went over a thousand and that cell only shows "pound" signs. If I mouse over it it tells me the number, but is there a way I can adjust this so I can see the number?

Thanks,
Kathi

Doug Posted 19 Jul 2007 , 6:16pm
post #4 of 25
Quote:
Originally Posted by kathik

You're incredible, Doug! Just one question. When I changed the numbers for my own needs the total shared expenses went over a thousand and that cell only shows "pound" signs. If I mouse over it it tells me the number, but is there a way I can adjust this so I can see the number?

Thanks,
Kathi

just make that column wider!

go to the top where the column heading are (A, B, C, ...) and mover cursor to right side of column -- when it hits the line it will change to the resize columns cursor (vertical line w/ arrows pointing left/right out of middle) ..
click and hold -- and drag to right to make as large as needed.

kathik Posted 19 Jul 2007 , 6:41pm
post #5 of 25

Thanks, Doug. It's perfect!

Kathi

FatAndHappy Posted 19 Jul 2007 , 6:51pm
post #6 of 25

Thank you Doug - this is just what I have been looking for!!!

SweetBakeCakes Posted 18 Mar 2013 , 12:45am
post #7 of 25
Quote:
Originally Posted by FatAndHappy

Thank you Doug - this is just what I have been looking for!!!

I know this is a very old thread, but Doug can you please message me the spread sheet i do not see a link here thanks!!!

kearniesue Posted 8 May 2013 , 12:24pm
post #8 of 25

I'd love to see that as well, please, Doug.  Thanks!

Karen

bigdad Posted 8 May 2013 , 12:36pm
post #9 of 25

I do not see a link either

Baking Me Crazy Posted 8 May 2013 , 2:24pm
post #10 of 25

AI don't see a link either.. :-(

Claire138 Posted 8 May 2013 , 6:37pm
post #11 of 25

I don't see a link either

Ms Jenn Posted 8 May 2013 , 10:12pm
post #12 of 25

I see this post is really old, but i too cannot see the link. I have been looking for a simple way to price/cost my cupcakes, etc. Can anyone who has Doug's link please send it to me.

Thanks so much

Ms Jenn Posted 8 May 2013 , 10:14pm
post #13 of 25

@ Baking Me Crazy

Baking Me Crazy Posted 9 May 2013 , 6:03pm
post #14 of 25

ANo I Haven't

Stitches Posted 10 May 2013 , 2:01am
post #15 of 25

In order to use any spread sheet, you'd still need to gather your own information/numbers to plug into it. Once you have your base numbers it's not that hard to divide by 365 days or less. There's other online business calculators that do the same thing.

Stitches Posted 10 May 2013 , 2:14am
post #16 of 25

You might want to take some time looking at this site: http://www.score.org/resources/business-plans-financial-statements-template-gallery

mcaulir Posted 10 May 2013 , 3:19am
post #17 of 25

Doug hasn't  active on this site since September of 2010. It's unlikely he'll be sending links to anyone.

jason_kraft Posted 10 May 2013 , 1:00pm
post #18 of 25

AIf anyone has specific questions about determining profit or overhead I would recommend creating a new thread.

kearniesue Posted 10 May 2013 , 1:08pm
post #19 of 25

I made this one.  I just popped in what I thought my overhead costs would be (not sure exactly yet - just starting it) and my ingredients.  Then how much I use of each ingredient in my recipies.  I think it'll work for me to estimate prices :)

Karen

jason_kraft Posted 10 May 2013 , 1:15pm
post #20 of 25

A

Original message sent by kearniesue

I made this one.  I just popped in what I thought my overhead costs would be (not sure exactly yet - just starting it) and my ingredients.  Then how much I use of each ingredient in my recipies.  I think it'll work for me to estimate prices :)

[ATTACHMENT=729]price matrix.xls (198k. xls file)[/ATTACHMENT]

Great job on that workbook. The only change I would recommend is removing the separate markup for supplies and applying a consistent markup for profit on your total cost (including supplies, labor, and overhead).

kearniesue Posted 10 May 2013 , 1:29pm
post #21 of 25

Thanks, Jason.  So you apply your markup to everything, including the overhead?  i never thought of applying it to my labor, since it's just me.  I really appreciate your feedback!

Karen

jason_kraft Posted 10 May 2013 , 1:39pm
post #22 of 25

A

Original message sent by kearniesue

Thanks, Jason.  So you apply your markup to everything, including the overhead?  i never thought of applying it to my labor, since it's just me.  I really appreciate your feedback!

That's the way I calculated it, your markup is the added benefit you get from running your own business instead of working for someone else and accrues to your business (as opposed to wages paid to you). A single markup calculation also gives you a better idea of what your true cost is vs. your price.

kearniesue Posted 10 May 2013 , 2:12pm
post #23 of 25

Thanks.  I made that matrix based on information you posted in other threads, and I feel much more confident in my pricing now.  I really do appreciate your help!

Stitches Posted 13 May 2013 , 2:09pm
post #24 of 25

I'm sure someone will correct me, but when I think "over head" I think the costs to operate my business. The heat, electricity, insurance, my car, the insurance for the car, the accountant, telephone, rent, etc...

When I think about my "costs" per cake, that's where I'd use a matrix like what's been posted.

Because "over head" includes more then the costs plus labor for the cake.

So someone steer me right, please? It seems that there's "over head" missing from this equation.

Ms Jenn Posted 13 May 2013 , 7:46pm
post #25 of 25

@ Baking Me Crazy

and anyone else that needs it.

I found  Alice's cake matrix and a powerpoint to go with it. Also I found another matrix that you may like also. I will attach everything for you. I hope this helps.

I was not able to attach Alice's powerpoint. But if you would like me to try to email it to you send me your email. Alice's price matrix is very detailed and has several pages the powerpoint is helpful if you choose to use hers.

Again, I hope this helps.