Asset-heavy operators leak 8–12% of gross margin before anyone notices — in quotes priced by gut, stock committed beyond lead time, cash sitting in receivables, and contract entitlements nobody bills. Move the four sliders. The math is shown, not hidden.
That's 0% of your gross profit, or $0 per served address per year. Benchmark for asset-heavy operators is 8–12%.
Every number above is arithmetic on your inputs. No black box — if you disagree with a coefficient, tell us and we'll run it your way.
Work priced without a live cost model gives away margin through discount creep and stale price books. We use a 4% give-away rate on gut-priced revenue.
revenue × gut% × 4%
Dates promised against stock you don't have become expedite fees, second truck rolls, and idle crews. Flat 1.2% of revenue.
revenue × 1.2%
Every day past 30 is working capital you financed for a customer. Costed at 10% annual cost of capital.
revenue × (DSO−30)/365 × 10%
Escalation clauses never applied, entitlements delivered but unbilled, renewals that slipped. Flat 0.6% of revenue.
revenue × 0.6%
Thanks — got it. One human, one email, usually same-day: we’ll walk your teardown together.
From 55 structured interviews with operators representing $2.68B in revenue. See how CPQ stops the first leak →