Common Costs Founders Forget to Include in Their Pricing
When pricing services, many founders overlook the smaller costs that quietly add up and impact profitability. One of the most common is failing to allocate time for revisions or reworks, which can become a significant expense across the life of a project.
Another frequent oversight is not tracking employee time accurately. Admin tasks often go unbilled, even though they directly contribute to delivering a project. Compliance costs for staff, such as WorkSafe and payroll tax, should also be added on top of direct labour costs to give a true picture of what each employee actually costs the business.
Software subscriptions and overhead allocation are two more areas that often get missed. Every cost involved in delivering a service needs to be accounted for, because failing to include them leads to under-pricing and erodes the profitability of your projects over time.
