How do you calculate your baseline price before sending a quote out?

​When you look at a job site, how are you actually building your estimates? Are you pricing based on true operational costs and target profit margins, or are you matching local competitors and hoping there is money left over at the end of the month?

​Knowing your numbers comes down to a few key questions:

​What is your true hourly overhead rate? (Total monthly fixed overhead divided by total monthly billable hours)

​Are you calculating margin or markup? (Markup on cost is not the same as gross profit margin. If you want a 30% margin, multiplying your costs by 1.30 leaves you short at 23%.)

​What is your minimum shop rate before pulling a rig out of the driveway?

​How are you handling this in your business?