Tool · Small businesses in Los Angeles, CA
Job costing and profit-margin leakage analyzer.
Enter estimated materials, labor hours, subcontractor costs, and overhead — then the actuals. The analyzer shows true gross margin and which line leaked project profit. It is for small businesses in Los Angeles, CA that sell work in jobs or projects, not for one industry. Key Forecasts does not specialize in HVAC or any other vertical.
Gross margin leaked $5,256 — from 51.8% on the bid to 23.4% actual. Profit went from $9,592 to $4,336. In Los Angeles, CA the usual leaks are unburdened labor and overhead that never made it onto the estimate.
- Bid gross margin
- 51.8%
- Actual gross margin
- 23.4%
- Bid gross profit
- $9,592
- Actual gross profit
- $4,336
- Total leakage
- $5,256
- Price for 35% GM
- $21,791
Where the profit left
- Direct materials+$950
Bid $4,200 → actual $5,150
- Fully burdened labor+$2,306
Bid $2,208 → actual $4,514
- Subcontractors+$500
Bid $1,600 → actual $2,100
- Allocated overhead+$1,500
Bid $900 → actual $2,400
Bid vs actual cost stack
| Line | Bid | Actual | Leak |
|---|---|---|---|
| Direct materials | $4,200 | $5,150 | $950 |
| Fully burdened labor | $2,208 | $4,514 | $2,306 |
| Subcontractors | $1,600 | $2,100 | $500 |
| Allocated overhead | $900 | $2,400 | $1,500 |
| Total cost | $8,908 | $14,164 | $5,256 |
| Selling price | $18,500 | — | |
Educational only. Not tax, legal, or a job-cost system of record. How we analyze margin as a controller · All tools.
Bid margin is not actual margin
A small business in Los Angeles, CA often prices a job on materials plus a wage and a gut-feel markup. Actual cost includes extra hours, a fully burdened labor rate, subcontractors, and overhead that has to live somewhere. The difference is leakage. This tool puts a dollar on each leak so you can raise price, change mix, or stop taking that work.
Who this is for
Owners who sell discrete jobs, projects, or client engagements — including trades, production or creative shops, and service firms — as long as they are small businesses in Los Angeles, CA. We do not run industry-specific funnels. If actual margin is far below the bid, the next step is a labor-burden and overhead model from the books, not another template.
Questions owners ask about job costing
What is job costing for a small business in Los Angeles, CA?
Job costing assigns materials, fully burdened labor, subcontractors, and a fair share of overhead to one job, project, or client engagement — then subtracts that stack from the selling price. The result is actual gross margin. Without it, the P&L can look healthy while individual jobs lose money.
Where does project profit usually leak?
In Los Angeles, CA the common leaks are labor bid at wage instead of a fully burdened rate, extra hours, materials that were not in the estimate, subcontractors, and overhead (rent, insurance, unbilled owner time) that never touched the bid. This analyzer shows the dollar gap on each line.
Is this tool only for trades, agencies, or one industry?
No. Key Forecasts does not target a single industry. Any small business in Los Angeles, CA that sells work in jobs, projects, or engagements can use it — including trades, production and creative firms, and service providers. We do not specialize in HVAC or any other vertical.
What labor rate should I enter?
Use a fully burdened Los Angeles rate: hourly wage plus employer payroll tax, workers’ compensation, benefits, and an allowance for non-billable time. A $32 wage is often $50–$80 loaded. Bidding the wage is how margin disappears.
What counts as overhead on a job?
A share of occupancy, insurance, software, vehicles, admin, and owner time that is not billed. If you leave overhead at zero, the ‘actual’ margin is still fiction. Allocate something — even a simple percent of revenue — then refine later.
Does the analyzer send my job numbers to Key Forecasts?
No. The math runs in your browser. Nothing is posted unless you paste figures into the contact form yourself.
How is this different from the P&L gross margin?
Company gross margin averages winners and losers. Job costing shows which engagement funded the rest. A 38% firm-wide margin can hide a job at 6% and another at 55%. Pricing and mix decisions need the job view.
Can I use this instead of a controller?
Use it to see leakage on one job. A fractional controller builds the rate, the overhead pool, and a monthly job-cost pack from your books. If actual margin is far below the bid, book a strategy session.
If the bid said 40% and the job delivered 12%, do not guess the next price.
Book a strategy session. We will tell you whether labor burden, mix, or overhead is the leak — for a small business in Los Angeles, CA.