The true line below which every sale loses money, including the costs owners routinely forget, so you price with clear eyes rather than hope.
The cost floor is not your price. It is the floor beneath which you are paying customers to buy from you. Capture your real cost to deliver each key offering, including your own time, an honest slice of overhead, and the cost of servicing the customer. If your overall cost structure is genuinely a mystery, build it first in financial health, then return here.
| Cost element | Offering A | Offering B | Offering C |
|---|---|---|---|
| Direct materials or goods | |||
| Direct labor to deliver | |||
| Your own time (valued honestly) | |||
| Overhead allocation | |||
| Cost of servicing the customer | |||
| Cost floor (total) |
Their own time. If you do not price your hours into the floor, a "profitable" offering can quietly be losing money the moment you account for the founder working it. Value your time at what you would pay to replace it.
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