Every job is priced at cost plus 32%. The overhead rate behind it was set in 2019.

A markup is not a margin policy but an arithmetic claim about overhead and volume, and both halves of it drift without anyone deciding they should.

By Steve 5 min read
Abstract bridge artwork for Every job is priced at cost plus 32%. The overhead rate behind it was set in 2019.

A standard markup feels like a decision about ambition. It is nothing of the kind. When a business prices work at direct cost plus a fixed percentage, it is making a specific arithmetic assertion: that the indirect costs of running the business, divided by the volume of direct cost it expects to deliver, come out at roughly that percentage. Both the numerator and the denominator move. Neither moves in a way that generates a meeting. This is why margin erosion so often appears without a single price concession. Nobody discounted.…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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