Pricing Jobs with Confidence

This case study shows how we helped a family-owned plumbing and heating company put real numbers behind their pricing. A labor rate calculator and new job-costing processes gave ownership a clear view of what each employee's time needs to earn and what each job actually costs. The result was a practical way to set rates, quote jobs, and know the work will be profitable before it starts.

Problem

For years, this family-owned plumbing and heating company quoted jobs on experience and gut feel, with no way to know if labor rates were set right or materials were marked up enough. The bottom line said the business was working, but ownership had a feeling they were leaving profit on the table.

Solution

We built a Labor Rate Calculator that sets target billing rates for each type of employee based on wages, billable hours, overhead, and profit goals. We also helped put new processes in place to capture the data needed for true job costing, connecting their field-service and accounting systems into one view.

Impact

The company has already reevaluated labor rates for several employees and quotes new work with more confidence. With the right data now being captured, they can measure true job costing to find under-quoted jobs and see which work is most and least profitable. When a job misses, they can see exactly why.

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