Margin Drivers AcademyModule 3 · Estimate every jobLesson 9 of 22
Pricing & Estimating
Job Estimator At a Glance
Check margin and realized rate before the bid goes out.
An estimate prices each line of a job by taking its cost and multiplying by a markup. Before the bid goes out, check two things: the gross margin it leaves, and the hourly rates it works out to.
Cost × Markup = Price: where the $1,565 bid goes
Example job · hardscape install, 8 crew hours- Job costs $669 · 42.8%
- Gross profit $896 · 57.2%
Every line of the bid
Hard Material
Stone, pavers, block and edging installed on the job.
Cost $410 × 2.00×
$820.00
Direct Job Labor
8 hrs × $27 = $216 wage + 20% burden ($43.20).
Cost $259.20 · 3.45× on wage
$745.20
Material & Chem/Fert
Plants, mulch, soil, chemicals and fertilizer.
Cost $0 × 2.00×
$0.00
Equipment Rental
Machines rented in for this job.
Cost $0 × 1.40×
$0.00
Subcontractors
Outside trades such as irrigation or lighting.
Cost $0 × 1.50×
$0.00
Trash & Other Direct Costs
Dump fees, permits and delivery for this job.
Cost $0 × 1.35×
$0.00
Total Installation Revenue
The bid: each line's cost × markup, added up.
Cost $669.20 · 2.34× overall
$1,565.20
The hourly rates that tell you if the bid works
Realized rate
$144.40
Revenue left after materials, equipment & subs at cost, per hour. ($1,565.20 − $410) ÷ 8
Labor rate / hr
$93.15
The target billing rate. Realized should beat it. $27 × 3.45
GP per man-hour
$112.00
Gross profit (ex-subs) per crew hour. $896 ÷ 8
Revenue / hour
$195.65
Installation revenue ÷ budget hours
Burdened rate
$32.40
True cost of an hour with taxes and comp. $27 × 1.20
Closing the gap: counting burden drops this job to 57.2%. To reach 60% the labor markup would need to be about 3.95× instead of 3.45×, or the crew hours trimmed. 2.00× on material keeps 50¢ of each dollar; 3.45× on wage keeps about 65¢ once burden is counted.
Check your own bid
Starts with the example hardscape jobCost × markup = price, line by line
Enter each line's cost and markup. See the bid, its gross margin and the hourly rates before it goes out.
Direct job labor
Other lines: cost ($) and markup (×)
Free tool · Put this guide to work
Price your next real job with the Job Estimator
Cost × markup on every line, labor burden counted as cost, then a margin and realized-rate check before the bid goes out. Your estimates are private unless you send one to us.
Open the free Job Pricing Calculator