Margin Management: Is your project making a profit or a loss?
Many agencies bill a lot but don't see the money. This happens due to a lack of cost control per project (Job Costing). Platforms like Jestor allow tracking all expenses (hours, software, contractors) linked to a specific client, revealing real margin in real-time.
The "Fixed Price" Trap
You charged $10,000 for the website. But the client asked for 50 changes. The team worked triple what was planned. If you don't measure this, you think you profited, but you actually paid to work.
Margin Calculator in Jestor
Build a financial app connected to operations:
- Initial Budget: $10,000.
- Hour Consumption: The designer spent 20 hours (Cost: $2,000).
- External Costs: Buying images and plugins (Cost: $500).
- Balance: Jestor shows a "Burn Rate" chart. If costs get close to the cap, the manager gets an alert to renegotiate.
Frequently Asked Questions (FAQ)
Does Jestor replace finance? It feeds finance. Finance pays the bills, but Jestor tells which project that bill belongs to (Cost Center).
How to log travel expenses? The consultant snaps a photo of the Uber receipt via theJestorapp and selects the project. The cost is deducted from the margin automatically.
Does this help with pricing? A lot. You'll discover that "Social Media" projects lose money and "Consulting" projects make money, adjusting your pricing table.
Conclusion
With Jestor, you stop managing by revenue and start managing by profit.
Control your project margins: https://jestor.com/