🧭 Overview
When quoting jobs in FieldGroove, it's critical to factor in surcharges like fuel and supply costs before you apply your desired margin. The Price Factor method ensures you account for these extra costs and still hit your true profit target.
This article explains:
- What the Price Factor is
- When to use it
- How to calculate it
- A ready-to-use formula for Excel or Google Sheets
🔍 What Is the Price Factor?
The Price Factor is a multiplier applied to your base cost (Material + Labor) that ensures:
- All surcharges are covered
- You still achieve your target profit margin (e.g., 40%)
This is especially useful if your business applies:
- Fuel & Supply surcharges to the total invoice
- Labor surcharges only to the labor portion
📘 Price Factor Formula
The following formula is used to calculate the required Price Factor mathematically:
🧠 Example Breakdown
| Component | Value |
|---|---|
| Material Cost | $1,000 |
| Labor Cost | $100 |
| Labor Surcharge (10%) | $10 |
| Fuel + Supply (4%) | Applied to price |
| Target Margin | 40% |
Calculated Price Factor: ~1.80195
Final Price Calculation:1,100 x 1.80195 = $1,982.14
✅ Why Use This?
- 🧾 Accurate margins — even with surcharges
- 📈 Consistent quoting — across teams and jobs
- 🔁 Scalable logic — supports fluctuating costs