TURNOVER MARGIN LAB · FICTIONAL DEMONSTRATION

Where one extra hour changes the economics.

This sample uses invented property labels and costs. It is a demonstration, not a real client result or market-rate recommendation.

Monthly scenario

At the supplied turnover counts, modeled operating profit is $1,036.10. Adding one fully paid labor hour to every turnover reduces it to $173.60.

These figures depend entirely on input assumptions. Owner labor must be costed. Income tax, omitted costs and unexpected losses are not included.

Property comparison

Property	Fee	Costs*	Profit	Margin	+1 hour profit	Target price	Monthly turns
Example Studio	$140.00	$87.50	$48.30	34.5%	$19.55	$122	12
Example Two Bedroom	$160.00	$132.55	$22.65	14.2%	$-6.10	$185	10
Example Large Home	$250.00	$213.75	$28.75	11.5%	$0.00	$297	8

*Costs before percentage payment fees; other_cost includes laundry, supplies, travel, allocated overhead and fixed processing charges. Target price is rounded up to a whole dollar.

Decision notes

Check time records and every included cost before changing a quote.
Identify properties that become unprofitable with one extra hour.
Use the target price as a cost-based scenario, then check buyer acceptance and scope.
Model volume discounts using actual route savings; a discount does not automatically reduce costs.

Formulas

Profit = fee × (1 − payment fee percentage) − labor hours × fully loaded hourly labor cost − other costs.
Target price = costs ÷ (1 − payment fee percentage − target margin). Margin is profit divided by selling price, not markup.

Data needed for a paid pilot

Up to ten property aliases, current fees, fully loaded hourly labor costs, typical hours, other costs, processing fee percentage, desired margin and monthly turnover count. Do not send guest records, addresses, door codes, payroll identities, bank details or credentials.