How is the Estimate Price Calculated

When creating or editing a service, you have the option to set a default price for the service. 
This will set a fixed price for the service that you will see when you first add it to the estimate.

But what if the default is not enough? What if you want to calculate the price based on various other factors?
This is where the calculator comes to the rescue. 
Using the calculator, you can fine-tune the service price, taking into consideration equipment, crew, area, add-ons, and other expenses.

How the calculator forms the price of the service

First, expand the service line item and click on the "Use calculator" button:

Scroll down, and you will see the 6 sections.

1. Hours and price section

Here, the estimator starts calculating the service price by estimating hours for the service, and eventually returns here when the calculation is complete.

1. Hours(h) - input estimated hours for the service
2. MHR ($/h) - hourly rate (calculated by dividing the final price by Man-Hours)
3. ${n} - shows the total calculated price for the service
4. Use - apply the suggested price to the service
5. Suggested (?) - hover over it to see a tooltip that displays the entire calculation process

2. Crew section

This section can help the estimator assess who will be assigned for the job and, based on that, how much it might cost.

1. Available crew roles (click to select)
2. Selected crew roles (one role can be selected multiple times)
3. Total price for the crew (calculated by multiplying the Cost Per Hour of selected roles by estimated hours + estimated travel time)

3. Vehicle section

In this section, estimators select the necessary vehicles and tools to make sure that all equipment is allocated upfront, preventing scheduling conflicts or shortages.

1. Add equipment from Equipment → Equipment types
2. Configure equipment by choosing different options
3. Total price for equipment (calculated by multiplying Price Per Hour of selected equipment by estimated hours + estimated travel time)
4. Delete equipment

4. Area section

This section can be useful if you charge by area. Select an area on the map, add the cost, and the Arbostar will calculate the price for you.

1. Cost - input the cost per sq.ft/km 
2. Area Size - get area size from the map or input manually
3. Price - calculated by multiplying Cost by Area Size
4. Map - select an area on the map
5. Delete - delete area
6. "+" - add another area

How to select an area

map modal window

1. Pan tool - pan around the map
2. Pen tool - click on the map to form an area
3. Delete - clean the area
4. Set Area Size - click to go back and apply the area to the calculation

5. Add-ons section

In this section, the estimator can approximate additional consumables that this specific job might require.

1. Name - type of add-on from Estimates → Add-ons
2. Rate - the amount of each add-on
3. Unit Cost - the cost of one add-on
4. QTY - multiplier for the Rate field
5. Total Cost - the final cost calculated by multiplying Rate and Unit Cost
6. Delete - delete add-on
7. "+" - add another add-on

6. Calculations section

This section is the final step before calculating the total for the service. Use it make final adjustments and verify travel time.

1. Travel(h) - estimated travel time (calculated automatically, can be changed manually)
2. Overhead($) - Service Overhead Rate from the Company management → Prices Management 
3. Markup(%) - additional markup from the service itself 
4. MH(h) - total man-hours
5. Expenses($) - add additional expenses (click to add)
6. Cost($) - the final cost before applying markup

How MH(Man-hours) are calculated

1. Hours (h) - duration of the service from the first section of the calculator
2. Crew Size - number of people in all chosen crew roles
3. Count - how many times the role was added in the Crew section
4. Estimated Travel Time*

*depending on the setting “Disable Auto Travel Time” in the Company Management, this parameter may or may not be a part of the calculation

How to add Expenses

expenses modal window

1. Add Expenses - every click adds a new expense
2. Name of the expense
3. Cost of the expense
4. Delete expense

How to calculate the final price

Let's take a look at the Hours and price section again. Hover over the "Suggested" tooltip to see the final formula:

The final formula: