Set the operating assumptions
Use the same cost definition for both jobs and identify whether amounts are billed, expected or collected. Include travel and time consistently, and keep unknown components visible. Do not compare a fully costed job with another that omits its return travel or labor.
A worked example
Fictional comparison: Job A collects $250 and has $170 in specified direct costs, leaving $80 contribution. Job B collects $180 with $80 in specified direct costs, leaving $100. Job B contributes $20 more despite collecting $70 less. The result follows these assumptions only and excludes overhead and any unstated costs.
Set a decision boundary
Inspect the cost drivers before changing price or choosing a service mix. A longer trip may be worthwhile under different collection, time or capacity conditions. Use the radius tool to test those assumptions and have the operator confirm feasibility. Do not turn the example into a universal preference for short jobs.
Check whether it worked
Reconcile actual payments and costs after completion, including refunds or late receipts. Review a relevant cohort rather than selecting only the most favorable pair. Explain any change in the cost model between periods. Contribution is a useful internal comparison, but accounting profit requires the broader expense picture.
Put it to work
A record you can use
- Comparable job scope
- Known collection
- Consistent direct-cost components
- Excluded or uncertain costs
- Contribution comparison and operational context
Plain text. No email required. Store completed records in your approved business systems.
Next useful step
Need help applying this to your marketing? A strategy call starts with your business and the evidence you have.
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