Bid Price from Cost and Margin Calculator
The price a cost plus a target margin implies, and the gross profit behind it.
Result
Gross profit at that price
$13,461.54
Markup on cost
53.8 %
Price to quote
$38,461.54
Price per month at an annual contract
$3,205.13
Reading: what this result means for the job
A workable margin on this price. The gross profit below is what is left before overhead, and it is the figure to compare with a competing bid rather than the price itself.
Applicability limit
The price is the cost of to serve divided by one minus the target margin, and it is a starting point rather than a quote. The cost of to serve has to include the same scope as the service being priced, and it excludes overhead unless you have included it in the cost entered. This is a planning figure for the values entered, not a measured result. Coverage rates, product yields and application rates are properties of a specific product, applicator and substrate, and the label or data sheet for the product you are using always takes precedence over the default here. Cost covers the chemical only, at the price entered. It excludes labour, equipment, applicators, consumables, freight, storage, waste disposal and any over-pour that the allowance does not capture.
Check before the job
Working
Price to quote
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Price per month at an annual contract
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Gross profit at that price
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Markup on cost
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What to check
- Build the cost from your own figures, including overhead, before using it.
- Confirm whether your margin is quoted on price or on cost.
- Check that the scope behind the cost matches the scope behind the price.
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