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Know what the job earns before you quote it.
Three calculators for the jobs that go wrong quietly: what a job actually earns, what to quote when the parts range is wide, and what a no-show costs. Every result shows the formula and the assumptions, so you can check the arithmetic yourself.
The fields start with a worked example. Replace the figures with your own. Nothing is sent anywhere, and no figure is saved unless you print it.
What a job actually earns
Price minus the direct costs. This is gross margin, before rent, insurance, admin, tax or your own draw.
The margin
What the job leaves before overhead.
—gross margin
Formula and assumptions
Gross profit = price − (parts + labour + other direct costs).
Gross margin = gross profit ÷ price × 100.
Markup on cost = gross profit ÷ total direct costs × 100. A 50% margin is a 100% markup; they are not the same number.
Price for target margin = direct costs ÷ (1 − target margin ÷ 100).
Assumes: the price excludes sales tax, every direct cost is included once, and labour is costed at what you pay rather than what you charge. It does not include overhead, finance, tax, warranty, rework or your own drawing.
What to quote when the parts range is wide
A call-out, the labour, a parts range and a contingency, then a target margin. The result is a range, not a promise.
The quote
A range you can explain, not a number you have to defend.
—suggested quote range
Formula and assumptions
Cost = call-out + (hours × rate) + parts + other fixed costs.
Cost with contingency = cost × (1 + contingency ÷ 100).
Quote = cost with contingency ÷ (1 − target margin ÷ 100).
Gross profit = quote − cost with contingency.
Risk if you quote low = low quote − high cost. A negative number means the low quote does not cover the high-cost version of the job.
Assumes: the hours include travel and setup, the parts range comes from a real supplier price, and the margin is gross before overhead and tax. It does not include callbacks, warranty, finance or the cost of chasing payment.
What an empty slot costs
The lost gross profit, plus the staff time only when that time is an extra cost. Revenue is not the same as profit.
The cost
What the empty slots add up to.
—over 4 weeks
Formula and assumptions
Lost gross profit = appointment value × gross margin ÷ 100.
Staff cost = hourly cost × minutes ÷ 60.
Cost per no-show = lost gross profit + staff cost, but only when the staff time is an extra cost.
Period cost = cost per no-show × no-shows per week × weeks.
Assumes: the appointment value and margin are averages, tax is excluded, and the slot could not be filled. It does not include the marketing cost of refilling it, the lifetime value of a lost regular, or the effect of a deposit policy on bookings.
Formulas and manual worksheet
If JavaScript is off, or you want to check the maths, these are the same rules the calculators use. Write your own figures on the lines.
Margin
Gross profit = price - (parts + labour + other direct costs) Gross margin % = gross profit / price x 100 Markup on cost % = gross profit / total direct costs x 100 Price for target margin = total direct costs / (1 - target margin / 100)
Price ________ Parts ________ Labour ________ Other ________
Direct costs ________ Gross profit ________ Gross margin ________%
Quote
Cost = call-out + (hours x rate) + parts + other fixed costs Cost with contingency = cost x (1 + contingency / 100) Quote = cost with contingency / (1 - target margin / 100) Gross profit = quote - cost with contingency Risk if you quote low = low quote - high cost
Call-out ________ Hours ________ Rate ________ Parts low ________ Parts high ________
Other ________ Contingency ________% Target margin ________%
No-show cost
Lost gross profit = appointment value x margin / 100 Staff cost = hourly cost x minutes / 60 Cost per no-show = lost gross profit + staff cost (only if the staff time is extra) Period cost = cost per no-show x no-shows per week x weeks
Appointment value ________ Margin ________% Minutes ________ Hourly cost ________
No-shows per week ________ Weeks ________ Staff time extra? ________
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