1. Fixed structure
How much it costs to keep the operation running per productive hour.
R$
Rent, salaries, owner's pay, fixed bills.
h
Productive hours in the month.
Fixed cost per hour
—
2. This specific product
Materials + direct labor + fixed cost allocated by the hours spent.
R$
R$
h
Hours this product consumes from your structure.
R$
Allocated fixed cost
—
Total product cost
—
3. Real margin
Margin in BRL
—
Margin in %
—
Benchmark: green ≥ 30%, yellow between 15–30%, red below 15%. A low margin means the price does not pay for your structure's time.
Reading guide
How to read your real margin
Three fictional scenarios so you can practice reading the results before looking at your own numbers.
Green
- What to look at
- Real margin ≥ 30% even after allocating fixed cost per hour.
- What it means
- The price pays for materials, labor, and structure time, with room to invest and absorb surprises.
- Next steps
- Hold the price, test bundles, and prioritize higher-margin products in your sales mix.
Yellow
- What to look at
- Real margin between 15% and 30% after allocation.
- What it means
- The product pays for itself, but little is left to reinvest. One weak month erodes the result.
- Next steps
- Cut production time, renegotiate materials, or raise the price by 5–10% and watch the reaction.
Red
- What to look at
- Real margin below 15% (or negative) after allocating fixed costs.
- What it means
- The price does not pay for your structure's time — each sale helps break the month.
- Next steps
- Raise the price, drop the item from the catalog, or redesign the process to spend fewer hours per unit.
Quick quiz
Did I really understand the traffic light?
3 quick questions based on the guide above. Answer and see the correct answers right away.
- 1A product shows a 12% real margin after fixed costs are allocated. Which traffic-light band is it in?
- 2Why does the 'margin' calculated as price minus raw materials usually fool the owner?
- 3Your real margin landed at 20% (yellow). What is the most consistent next step according to the guide?
Answered: 0/3
Go deeper in the book
Chapter 3 — How cost shapes the price
In the book I show how to turn structure hours into a selling price, with no margin illusions.
Buy the book →