VideoOperations
Pricing and Margin Workshop
Set profitable pricing for service and product businesses.
35 min
Resources
Build price from the bottom up
- Direct labor including payroll taxes and benefits
- Direct materials plus waste and freight
- Allocated overhead as a percentage of direct cost
- Risk contingency for scope and schedule
- Target margin — set it before you look at the competition
Three pricing mistakes that kill margin
- Quoting from memory instead of a worksheet
- Absorbing scope changes without a change order
- Multi-year contracts with no escalation clause