The point at which a day's work has brought in enough to cover what the day cost you, before a cent of profit. Knowing it turns pricing from a nerve question into an arithmetic one: below break-even you are paying for the privilege of working, and a busy schedule of jobs priced below it is the fastest way to go under while looking successful.
In FieldQuo — Your break-even price
FieldQuo works out your break-even price from your own recorded overhead rather than from a rule of thumb.
Related terms
- OverheadWhat the business costs to run whether or not you work today — insurance, the van payment, the phone, the accountant, the software, the storage unit.
- MarginWhat is left of the price once the cost of doing the work is taken out, given as a percentage of the price.
- Effective hourly rateWhat you actually earn per hour once the unpaid hours are counted — quoting, driving, buying materials, chasing invoices, doing the books on a Sunday.
More in pricing, cost and profit
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