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After the job

What It Takes to Serve a Client

The short answer

Cost to serve is everything a client actually costs you beyond the job price — the unbilled hours, the extras given away, and the costs you absorbed. A client can look profitable on the invoice and still cost more than they pay.

What it means

The price on an invoice is only one side of the ledger. The other side is every hour and every cost that never made it onto that invoice: a call to check on progress, a small extra thrown in for free, a part replaced without charging for it. None of it is visible unless you add it up on purpose.

Cost to serve is not a reason to distrust every client — most cost very little beyond the job itself. It is a way of finding the small number of clients where the gap is large enough to change what you charge them, or whether you keep taking their work at all.

For example

A client’s jobs total $3,000 for the year. Add up the unbilled calls, two free revisits, and a part you absorbed, and the real cost to serve that client is closer to $3,800 worth of your time and money for $3,000 in.

The mistake to avoid

Judging a client only by what they pay, with no look at what serving them actually costs — a high-paying client with constant unbilled extras can be worth less than a smaller, simpler one.

See also

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