How do you know whether a customer is profitable?
A contract can generate strong revenue and still consume more labor than planned. Estimate profitability by comparing revenue with the cost of dedicated hours and all other expenses required to deliver the service.
Margin = (contract revenue − operating costs) ÷ contract revenue
Monitor margin before it disappears
Recalculate when scope changes, overtime grows or the team spends more time at the customer. Attendio shows how many labor hours each customer used to support this analysis.
Frequently asked questions
Questions about this calculation
Which expenses should I include?
Complete labor cost, supplies, equipment, transport, supervision and other costs directly linked to the contract.
Does a negative margin mean a loss?
In this estimate it means the entered costs exceed revenue. Complete a full financial analysis before making decisions.
How often should I recalculate?
At least whenever scope, team size, pay, service frequency or supply costs change.