Project Pricing and Resource Model
Built a configurable pricing model linking team cost, project duration, resources and target margin, giving teams a consistent basis for preparing quotes.
Connected
Cost, resourcing and target margin
- Project Economics
- Resourcing
- Pricing
Context
Project margins were affected by delivery hours and senior staff time that were not fully captured during quoting.
The problem
Cost, duration and resourcing were estimated separately, so margin pressure often became visible only after delivery.
Analysis
- 01Salary converted into a true hourly cost per role, including non billable overhead.
- 02Team composition and weekly hours modelled against real project duration.
- 03Required margin built in as an input rather than checked for afterwards.
Recommendation
Build quotes from the resources required and the target margin. Test whether the proposed price can support both before agreeing the scope.
Example view
Illustrative presentation of the approach. Client data remains confidential.
Pod Pricing Model
Move the inputsDuration
Target margin
- Delivery cost
- Rs 396,000
- Recommended price
- Rs 528,000
- Delivery cost
- Rs 396,000
- Recommended price
- Rs 609,231
- Delivery cost
- Rs 396,000
- Recommended price
- Rs 792,000
- Delivery cost
- Rs 792,000
- Recommended price
- Rs 1,056,000
- Delivery cost
- Rs 792,000
- Recommended price
- Rs 1,218,462
- Delivery cost
- Rs 792,000
- Recommended price
- Rs 1,584,000
- Delivery cost
- Rs 1,320,000
- Recommended price
- Rs 1,760,000
- Delivery cost
- Rs 1,320,000
- Recommended price
- Rs 2,030,769
- Delivery cost
- Rs 1,320,000
- Recommended price
- Rs 2,640,000
Set the target margin and review whether the proposed price can support it before agreeing the project.
Implementation
- Configurable pricing model
- Role level hourly cost
- Team and duration inputs
- Recommended selling price output
Outcome
A repeatable quoting method that makes delivery cost and target margin visible to the team preparing proposals.
What this demonstrates
- Unit economics
- Project costing
- Resource planning
- Margin protection
Next
Pricing and Profitability Strategy
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