OT: How much of your overhead should be payroll?

bigbet1234 · Aug 2, 2007

I'm looking at about 30% of total sales. I now it's probably dependent upon the business, but lets get some %'s

Nice new layout by the way with advertisers above

joeyfitzclick · Aug 2, 2007

My payroll is anywhere from 25-35 %. Anything over 35% and you need to cut some corners.

bigbet1234 · Aug 2, 2007

Is that including your pay too?

joeyfitzclick said:
My payroll is anywhere from 25-35 %. Anything over 35% and you need to cut some corners.

joeyfitzclick · Aug 2, 2007

No

But I do not have an integral role in the day to day running of the business. If you put in a regular 40 hour week you must include your salary in the sales to payroll ratio.

WinningWand · Aug 2, 2007

25% but outsourcing more will drive it to 19%.

winbet · Aug 2, 2007

Too wide a question Bigbet, it depends on the business. While Joey is probably talking about Restaurants which in England they see 1/3 of takings going in overheads, bookmaking can be 0.08 of turnover.

You could reverse audit the business and ask how much is it worth then summise the labour costs but more to the point is how much the going rate is in other outlets, maybe you find the staff cost is more in your company but you have better staff.

When I was in business I made sure I paid top dollar, that way I always had the best service. If there's a problem then its nothing to do with staff service. :thumbsup:

buddyboy · Aug 3, 2007

1% if you hire illegals
40% if you hire Americans

American worker says, "we have an immigration problem in this country"
American business says, "yes we do, Mexico needs to send more and in a hurry"

Seymour · Aug 3, 2007

winbet said:
Too wide a question Bigbet, it depends on the business. While Joey is probably talking about Restaurants which in England they see 1/3 of takings going in overheads, bookmaking can be 0.08 of turnover.

You could reverse audit the business and ask how much is it worth then summise the labour costs but more to the point is how much the going rate is in other outlets, maybe you find the staff cost is more in your company but you have better staff.

When I was in business I made sure I paid top dollar, that way I always had the best service. If there's a problem then its nothing to do with staff service. :thumbsup:

This is the first post I have ever read by Winbet where he is not fucking around - I have re-read it - unless he edited it, it does not use the term "wanker".