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Plumbing service Target Margin Quote

Find a quote that retains the chosen margin after revenue-based commission.

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Plumbing service / service visit economics

Plumbing service Service visit Quote

Your result714.285714

Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.

657.14160685.71180714.29200742.86220771.43240Fittings cost
Other inputs stay fixed. Point labels show the calculated result; this is a scenario comparison.

Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)

What you’ll need

Gather a completed job sheet, supplier quotes and a crew schedule. Include fittings, access time, and travel. The starting figures are examples. Replace them with your own records.

Formula and worked example

Quote = (itemised delivery costs + allocated overhead) ÷ (1 − margin − commission)

Example figures
InputExample
Fittings cost200
Access time cost150
Travel cost50
Fixed overhead allocated to this service visit100
Target margin after commission25 %
Selling-price commission5 %
Calculated result714.2857

Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.

Choose reliable inputs

Plan materials, travel and crew time before committing to a price. For this plumbing service calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one service visit.

  • Fittings: include the portion belonging to this service visit or reporting period, and record where the value came from.
  • Access time: include the portion belonging to this service visit or reporting period, and record where the value came from.
  • Travel: include the portion belonging to this service visit or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

How should commission change my quote?

Adding a commission percentage to cost does not preserve the target margin. Commission is based on the selling price.

Allocate overhead once; target margin and commission together must be below 100%.

Compare a different assumption

What if this input changes?

If fittings cost rises by 10%, this example changes by 28.5714 . This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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