Calculate the Floor Price for a Tow
Calculate a towing quote floor using variable cost, allocated overhead, risk, and target margin.
A customer requests a 31-mile light-duty tow. The truck is nearby, so dispatch is tempted to accept $115. Build the quote floor before answering. Cost-plus floor: variable cost + allocated overhead + risk buffer + target margin The common trap is pricing from truck proximity alone. A nearby truck reduces some travel time, but it does not erase driver labor, fuel, wear, dispatch time, card fees, insurance overhead, or the opportunity cost of assigning the truck. Variable cost Fuel and maintenance estimate: $28. Driver time for pickup, loading, 31 miles, drop, and return path: $42. Start with costs that rise…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in