Define the service being priced
Describe what is sold: a single trip, a vehicle on standby, a recurring run or a day with several stops. Record timing, waiting, return travel and vehicle downtime.
The distance between pickup and drop-off is only part of the work. Empty mileage and repositioning time can also be required to deliver the service.
Use observed operating data
Use planned and actual hours, distance, road charges, parking and subcontractor costs. Record the period covered and where each figure came from.
If a value is missing, show it as an assumption and test a range. Do not replace local measurements with an unverified national average.
Keep cost, price and margin distinct
Add the costs assigned to the service, then compare them with the quoted price using one consistent method. Margin amount and margin rate are different measures.
State whether amounts include tax and which currency is used. Tax on a software subscription does not establish the tax treatment of the transportation service.
Test the assumptions that move the result
Calculate both an estimate and the actual outcome. Vary waiting time, empty return distance, fuel or subcontracting cost to see which assumptions matter most.
Compare like with like: the same service, period and allocation rules. A low margin may come from pricing, duration or a resource assigned inefficiently.
Use the calculation to guide action
Use the model to prepare a pricing discussion, review a recurring run or ask a question before confirming work. It informs the decision; it does not set an acceptable price automatically.
Keep the calculation with the quote and revisit it when conditions change. A precise-looking result is weak if its inputs are old or incomplete.
- Service scope and schedule recorded
- Time and distance have traceable sources
- Fees and subcontracting included
- Tax basis and currency stated
- Assumptions compared with actual results