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In this brief segment, Mike Andes explains his crew compensation approach, emphasizing that crew members receive 33% of the labor portion of a job’s revenue rather than a share of the total job value. He clarifies that the calculation is based on budgeted labor hours: for example, with 10 budgeted hours billed at $100 per hour, the company generates $1,000 in labor revenue, and the crew’s share at 33% equals $333. This illustrates how the model separates labor markup from material markup and ties crew pay directly to labor revenue.

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