Measure the current state
Subtract materials, direct labor, commission, permits, subcontractors, other direct costs, and allocated acquisition cost. The remaining contribution must still support overhead, tax, and profit.
Resource
Job Margin Guide
Contract value is not the amount the job contributes to the business.
The operating reality
Contract value is not the amount the job contributes to the business.
Subtract materials, direct labor, commission, permits, subcontractors, other direct costs, and allocated acquisition cost. The remaining contribution must still support overhead, tax, and profit.
A $12,000 job minus $4,200 materials, $3,000 labor, $500 commission, $700 other direct cost, and $600 acquisition contributes $3,000, or 25%.
The lesson
Start with a defined operating question
Subtract materials, direct labor, commission, permits, subcontractors, other direct costs, and allocated acquisition cost. The remaining contribution must still support overhead, tax, and profit.
Worked example
Put the idea in dollars
A $12,000 job minus $4,200 materials, $3,000 labor, $500 commission, $700 other direct cost, and $600 acquisition contributes $3,000, or 25%.
Operator checklist
Take the next action
Use actual business inputs and document assumptions.
- Use actual cost categories consistently.
- Allocate customer acquisition to the job.
- Review estimate versus actual after completion.
- Use the result to improve pricing and job selection.
Related principle
The operating rule behind the resource
Read the belief that keeps the number connected to the workflow.
Simple dollar example
Make the economics visible.
A $12,000 job minus $4,200 materials, $3,000 labor, $500 commission, $700 other direct cost, and $600 acquisition contributes $3,000, or 25%.
Illustrative only. Use your own numbers and assumptions; this is not financial advice or a guaranteed forecast.
What changes
One clear rule. One accountable next action.
Keep the workflow accountable
A $12,000 job minus $4,200 materials, $3,000 labor, $500 commission, $700 other direct cost, and $600 acquisition contributes $3,000, or 25%.
Frequently asked questions
Practical buying questions
What should I do after reading Job Margin Guide?
Use Job Margin Calculator with one consistent period, document the assumptions, and assign the next operating action.
Are the examples benchmarks?
No. They illustrate the math. Your trade, market, labor, materials, and close outcomes determine the actual result.
Do I need to submit a form to use the resource?
No. Foundational education and calculators are open. Saving a personalized result is optional.
Related reading
Keep following the operating system.
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