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Locksmith: Target Margin Quote vs Contribution per Sale

Add up delivery costs and overhead, choose a margin, then check how many sales you need.

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Locksmith / callout economics
Set a price that covers your costs

Add up delivery costs and overhead, choose a margin, then check how many sales you need. Start with a completed job sheet, supplier quotes and a crew schedule. Each example below uses hypothetical values you can replace.

Which calculator should you use?

ToolWhat it answersWhat to check
Target Margin QuoteFind a quote that retains the chosen margin after revenue-based commission.Adding a commission percentage to cost does not preserve the target margin. Commission is based on the selling price.
Contribution per SaleFind the amount a completed sale contributes toward fixed costs.Contribution still needs to cover rent, management, software, and other fixed costs before there is net profit.

These tools answer different questions and may use different units. Choose the tool that measures what you need; a larger result does not necessarily mean a better outcome.

Step 01

Target Margin Quote

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

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

Show example inputs and result
Hardware cost200
Dispatch time cost150
Travel cost50
Fixed overhead allocated to this callout100
Target margin after commission25 %
Selling-price commission5 %

Result: 714.2857 . Delivery cost 400; allocated overhead 100; commission 35.7143; retained contribution after assigned costs 178.5714.

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

Open target margin quote

Worked example · Input checks

Step 02

Contribution per Sale

Find the amount a completed sale contributes toward fixed costs.

Contribution = price − materials − hours × labour cost − other variable cost

Show example inputs and result
Revenue per callout800
Materials or purchased services250
Delivery labour hours5
Burdened hourly labour cost35
Other variable cost50

Result: 325 .

Contribution still needs to cover rent, management, software, and other fixed costs before there is net profit.

Open contribution per sale

Worked example · Input checks

Use the results in your plan

For a locksmith business, review hardware, dispatch time, and travel across the complete workflow. Use one consistent period and delivery unit: a callout. Compare the assumptions with recorded outcomes after delivery, then update the estimate.

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