2 min read
Build the price up
Start with the direct cost of delivering the job, add a share of overheads, then a margin for profit. Underpricing the overhead share is the classic way a "busy" business makes no money. See gross margin.
Account for funding
If the job needs cash up front — materials, subcontractors — factor the cost of financing that outlay into the price. A profitable-looking job can lose money once the finance cost is ignored. Use the markup to margin calculator.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
What margin should I add to a job?
Enough to cover overheads and leave real profit after all costs, including any finance. The right level varies by sector; the mistake is forgetting overheads and financing.
Should I include finance cost in a quote?
If the job ties up cash you have to fund, yes. Ignoring the cost of financing the up-front outlay can turn an apparently profitable job into a loss.
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