With the economy being tight the competition can get fierce for big jobs and sometimes any jobs.

More competitors and fewer project dollars might make you think about reducing your profit margin slightly to win more jobs.

How can that be easily done in Estimate Rocket

Naturally you need to be doing some sort of cost based estimating to be able to see changes to your profit margin if you change your prices.

Add a Discount to a Project

Adding a discount to a project will do the trick of giving you a visible update on the profit margin.

Original Estimate where the project total is $6000 and the profit margin is 50%

Estimate With Cash Discount where the project total is $5000 and the margin is now 40%

Changing the Price of your Labor to change your Profit Margin

If your circumstance is different and you want to put a bulk cash discount on the project and want to control the profit margin based on changes to the price of your labor to the client.

In this case the margin of this project is 50% based on my labor and material breakdown.

However if I wanted to discount just the labor there can be bulk changes made to the price of my labor. Changing the labor from $60 per hour to $50 per hour would yield a smaller profit margin on the project.

The total hours for the project do not change but the overall profit does.

Changing the Price of your Materials to Change your Profit Margin

Similar to changing the price of your labor you can also manage the margin by changing the price of the materials. 

In this case changing the materials to be a smaller margin will also move the project total downwards and reduce the profit margin. The materials were at a 50% margin and reduced to a 33% margin will also bring down the project total and profit margin.

The materials were at a 50% margin and reduced to a 33% margin will also bring down the project total and profit margin.

Managing Profit Margin in Estimate Rocket

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