MarginWorksJob Profit Check
Before you sign the bid: does this price actually make money once labor, materials, subs, and overhead are counted? Profitable, marginal, or losing money, with the price you'd need to fix it.
Sensitivity to bid price
| Scenario | Price | Margin | Verdict |
|---|---|---|---|
| Price -10% | $4,500 | 44.4% | Profitable |
| Price -5% | $4,750 | 47.4% | Profitable |
| Your bid | $5,000 | 50.0% | Profitable |
| Price +5% | $5,250 | 52.4% | Profitable |
| Price +10% | $5,500 | 54.5% | Profitable |
Methodology
Formula: total job cost = materials + subcontractors + (labor hours × loaded labor rate) + (labor hours × overhead per hour). Projected margin = (bid price - total job cost) / bid price. Minimum profitable price = total job cost / (1 - target margin).
Assumption: a verdict of "profitable" requires meeting your target margin, not just clearing zero profit, "marginal" means you're making money but below target, and exact break-even (zero profit) is treated as "losing money" since it isn't a livable outcome for the business.
Limitation: doesn't account for payment timing, change orders, or risk of scope creep, this is a point-in-time check against the costs you enter.