The colloquial expression used to describe a markup methodology taught by Irv Chassen and the management consulting company he founded known as PROOF that places the responsibility of recovering overhead costs solely on the labor or available production capacity a company has. Also know as a Capacity Based Markup or Indexed Markup, Differential Markup, or Labor Based Markup.
Web Articles on PROOF and Capacity Based Markup:
- Allocating Overhead to Labor Makes Financial Sense | JLC Online
- How To Charge For Overhead | JLC Online | Job-Costing, Overhead, Markup, Estimating, Iowa
- A Simple System for Turning a Profit | JLC Online
- Science, not art, and certainly not guessing by: Irv Chasen, 12/1/2004
- OVERHEAD: Recovering the Obvious by: Irv Chasen 1976
- One of the Potential Problems in Using a Traditional Volume Based Markup – Construction Business Solutions | Paradigm Projects
- Comparing Markup Methodologies In Real Some World Pricing Scenarios – Construction Business Solutions | Paradigm Projects
- Pricing Spec Homes Using a Capacity Based Markup Model – Construction Business Solutions | Paradigm Projects
Books containing information on PROOF/Capacity Base Markup:
- Running a Successful Construction Company (For Pros, by Pros): David Gerstel
- How Much Should I Charge?: Pricing Basics for Making Money Doing What You Love: Ellen Rohr
I am ex-architectural woodworker and general contractor turned IT, Business and Project Management consultant, software developer wannabe senior division triathlete and ski racer, Yankee fan and founder of Paradigm-360.com, 360 Difference Mac4Construction.com,iOS4Construction.com and now TheBuildingAndRemodelingWiki.com too.
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