Jul 25, 2019
Should You Include Labor Hours in Cost of Goods Sold (COGS)?
Service-Based Business Owners Must Include Labor Hours in their Cost of Goods Sold in order to get a true cost basis and calculate a true gross margin on their services. Especially when labor is part of the actual service.
Most importantly, solo business owners need to include labor hours too! They need to assign a typical hourly wage as if they have hired someone other than themselves to do the job. This is the only way to get a true COGS for services.
The Local Small Business Coach Podcast is for Local Small Business Owners who are tired of living job to job and want to get to $100,000 in personal income. Each episode we discuss how to increase your profits, boost your sales, improve your processes and develop stronger teams.
WHO THIS PODCAST IS FOR:
local small business owners, mobile businesses, brick and mortar businesses, handymen, landscapers, pool cleaners, cleaning services, QSRs, restaurant owners, mechanics, plumbers, real estate agents, dog groomers, franchisees, tradesmen, medical, dentist, insurance, & those looking to increase profits, boost sales, improve processes and develop stronger teams