Illustrative math: follow assumptions, not a benchmark
Assume your own walkthrough produces 3.5 labor hours per visit and the prospect requests five weekly visits. These figures are illustrative, not recommended production rates.
Assumptions
- The company uses 4.33 weeks per month
- Verified burdened labor cost is $24 per hour
- Company-specific non-labor cost allocation is $420 monthly
- The estimator tests a 25% gross margin on modeled cost
How to structure it
- 1.Monthly labor: 3.5 × 5 × 4.33 = 75.78 hours
- 2.Labor cost: 75.78 × $24 = $1,818.72
- 3.Modeled cost: $1,818.72 + $420 = $2,238.72
- 4.Price at 25% margin: $2,238.72 ÷ 0.75 = $2,984.96
Takeaway: Replace every assumption with verified company figures, then inspect the resulting labor hours and scope before quoting a customer.