Construction
The output that makes (or breaks) your margin
Output is the number of m² one worker completes per day. Every job has a minimum output: below it, your price no longer covers your costs.
How it's calculated
We recalculate the full cost of the job for every possible output (labour, scaffolding days, travel),
and look for the first output at which the cost drops below your price.
Not a simple proportion: materials don't depend on output.
and look for the first output at which the cost drops below your price.
Not a simple proportion: materials don't depend on output.
Worked example
Roof of 180 m² at €59.38 excl. VAT/m², planned output 22. Minimum output 13.30 (with no risks or fees on the price). Your team can slow down by about 40% before losing money.
Mistakes that cost you
- Pricing with a good day's output, on an easy job.
- Forgetting downtime: setting up, packing up, bad weather, waiting for deliveries.
- Never measuring the real output after the job.
Your situation doesn't look like the example? Do the full calculation with your own figures: it's free, with no sign-up.
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