Calculate the cost to deliver products or services

If you don't know what it truly costs to deliver, you can't price for profit. Calculating your cost to deliver — materials, labor, and overhead per job — is the foundation of margins that actually work.

Do this

1. Add up direct costs for one job: materials + labor time.
2. Add a share of overhead (tools, fuel, software, insurance).
3. That total is your cost to deliver — compare it to your price.
4. Use it to set prices that leave the margin you need.

Cost-to-Deliver Formula

Cost to Deliver = Materials + Labor + Overhead share

Example for one job: Materials: $60 Labor (3 hrs × $25): $75 Overhead share: $25 ───────────────────────────── Total cost to deliver: $160

If you charge $280, your gross profit is $120 (43% margin). If you only charge $180, you're barely covering costs — raise the price.