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Customers & operations

Cost-to-serve calculator

Calculate the true cost of serving one customer or delivering one service from labor, support, fees, travel, materials, and acquisition cost.

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01

YOUR NUMBERS

What does this customer or service really cost you?

02

YOUR RESULT

Total cost to serve

$194
Delivery labor$84
Support labor$18
Price at target margin$258.67
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The entered service costs $194 to deliver. A 25% margin implies a starting price of $259.

BUSINESS PRICING EXAMPLES

Calculate the hidden cost of serving a customer

Customer profitability can be overstated when support time, transaction fees, travel, delivery, and acquisition expense are left out. Add them here before setting a service price.

Service customer with delivery and support time

A service takes three delivery hours, 45 minutes of admin/support, $35 of materials, $20 of travel, $12 of platform fees, and $25 of acquisition cost.

Enter these numbers in the calculator above

Delivery labor hours
3 hrs
Delivery labor cost per hour
$28
Support/admin hours
0.75 hrs
Support/admin cost per hour
$24
Materials or consumables
$35
Travel or delivery cost
$20
Transaction/platform fees
$12
Customer acquisition allocation
$25
Target margin
25 %

Total cost to serve$194.00

The tool combines delivery labor, support labor, and all entered nonlabor costs, then shows a starting price at the target margin.

KEEP GOING

Next up: Flat rate pricing

Build a fixed customer price with labor, materials, risk allowance, and margin.

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