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Unit Cost Calculation

If you do not know your exact unit cost, every price is a guess. We build a costing model that covers materials, labor, and overhead, so you see the true margin of every product, service, and order.

When you need this service

Prices are based on guesses or on "that’s how it has always been".

Overhead — rent, administration, equipment — is not included in the unit cost.

Material and labor costs fluctuate, but prices are never reviewed.

Bids and quotes are priced without a real calculation — and sometimes "winning" means losing money.

What you get

Costing model

For every product and service — materials, labor, and overhead in one calculation.

Overhead allocation

A clear, defensible methodology for how indirect costs reach each product.

Break-even calculation

How many units or hours you must sell to cover costs — per product and overall.

Quote calculator

A tool your team can use to price new work quickly and safely.

Periodic review

When costs change, the model is updated — your unit costs never go stale.

How we work

1

Cost inventory

We collect all direct and indirect costs from accounting and production data.

2

Build the model

A costing approach that matches your actual process — manufacturing, trade, or services.

3

Validate against actuals

We test the model against real orders, so the calculation matches reality.

4

Handover and training

Your team learns to use the model independently — we stay available for support.

Frequently asked questions

Does this work for both manufacturing and services?

Yes. In manufacturing the drivers are materials and machine time; in services it is team hours. We build the model around your cost structure.

What happens when costs change?

The model is built so cost changes can be entered quickly — and you immediately see which products no longer cover their cost.

Will we be able to use the model ourselves?

Yes — that is the goal. We hand over the model with training, your team uses it daily, and we help with periodic reviews.

Learn the true cost of every product

In a free consultation we will review your cost structure and show what your costing model would look like.