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.
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
| Fuel cost | 200 |
|---|---|
| Standby time cost | 150 |
| Equipment wear cost | 50 |
| Fixed overhead allocated to this clearance visit | 100 |
| Target margin after commission | 25 % |
| Selling-price commission | 5 % |
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 quoteContribution 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 clearance visit | 800 |
|---|---|
| Materials or purchased services | 250 |
| Delivery labour hours | 5 |
| Burdened hourly labour cost | 35 |
| Other variable cost | 50 |
Result: 325 .
Contribution still needs to cover rent, management, software, and other fixed costs before there is net profit.
Open contribution per saleFully Loaded Labour Cost
Convert staff cost into a delivery-hour cost for pricing.
Loaded cost = (pay + employer costs + allocated overhead) / productive hours
Show example inputs and result
| Annual gross pay | 45,000 |
|---|---|
| Employer benefits and payroll costs | 10,000 |
| Allocated annual staff overhead | 5,000 |
| Productive annual hours | 1,500 |
Result: 40 per productive hour.
Productive hours exclude leave, training and non-delivery time. Enter employer charges from your own payroll records.
Open fully loaded labour costOverhead per Sale
Spread a monthly fixed cost budget across completed sales.
Overhead allocation = fixed costs / completed sales
Show example inputs and result
| Monthly fixed costs | 6,000 |
|---|---|
| Completed clearance visits per month | 60 |
Result: 100 per sale.
Fixed cost per sale rises when completed volume falls. Test a conservative volume scenario before setting prices.
Open overhead per saleSales Volume for Target Profit
Plan completed sales to cover overhead and an entered profit target.
Required volume = ceiling((fixed costs + target profit) / unit contribution)
Show example inputs and result
| Period fixed costs | 8,000 |
|---|---|
| Target operating profit | 4,000 |
| Revenue per clearance visit | 500 |
| Variable cost per clearance visit | 300 |
Result: 60 sales.
The unit contribution must be positive. Check whether delivery capacity can support the resulting volume.
Open sales volume for target profitSales Needed After a Discount
Find the volume needed to preserve contribution after lowering price.
Required sales = ceiling(original contribution / discounted unit contribution)
Show example inputs and result
| Original selling price | 100 |
|---|---|
| Variable cost per sale | 60 |
| Price discount | 10 % |
| Original sales volume | 100 |
Result: 134 sales.
Use contribution after variable cost. The discounted price must still exceed variable cost.
Open sales needed after a discountUse the results in your plan
For a snow removal business, review fuel, standby time, and equipment wear across the complete workflow. Use one consistent period and delivery unit: a clearance visit. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
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