The Service Profitability Calculator
The Service Profitability Calculator
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Know Exactly Which Clients and Services Actually Make You Money.
A complete framework and step-by-step calculator for uncovering the true profitability of every service, project, and client you have.
A full calendar doesn't mean a profitable business — many service companies are quietly losing money on half of what they sell without knowing it. This book teaches you to calculate true cost using fully-loaded labor rates, materials, and allocated overhead; find your effective hourly rate and the real impact of utilization on margin; set a cost-informed pricing floor instead of guessing at market rates; and spot the specific patterns (scope creep, legacy pricing, high-touch low-ticket clients) that quietly drain profit. Includes a full worked example and a ready-to-use profitability calculator template you can run per service line or per client every quarter.
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