Case study
Pricing & Profitability Decision System
How do you price a job when volume alone does not explain profitability?
By modeling the full cost of delivering the job rather than the load size. This live pricing and profitability decision system for a multi-county service business combines job price, disposal weight and landfill cost, labor, travel and fuel, equipment wear, card fees, customer-acquisition cost, and job duration to produce contribution, margin, and contribution per truck-hour for consistent scenario testing.
The problem
Job pricing needs to reflect more than simple load volume. Two jobs of similar size can differ sharply in profitability once disposal weight, drive time, crew hours, and equipment wear are counted.
What the system models
- Job price and job duration
- Disposal weight and landfill cost
- Labor, travel, and fuel
- Equipment and truck wear
- Card processing fees
- Customer-acquisition cost
- Cash and economic contribution, margin, and contribution per truck-hour
How it is used
Scenarios are tested before quoting: what a longer drive does to margin, when heavier disposal changes the answer, and which job profiles are worth the truck-hour they consume. The output is a consistent basis for pricing decisions rather than an estimate reconstructed each time.
Result
The system supports consistent scenario testing and better-informed pricing decisions for the business it was built for.
Why it belongs in workflow consulting
Pricing is a recurring decision workflow. Structuring the inputs, fixing the calculation, and making it repeatable is the same discipline applied to reconciliation or management reporting.
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