Cost, margin, coefficient: pricing a site right
Updated July 2026
The direct cost (déboursé sec) is the real cost of a line item: materials + labour + equipment. Applying a coefficient (covering overheads and profit) gives you the selling price. Mastering this calculation means protecting your margin on every quote.
The direct cost: your real cost
The direct cost is the direct cost of a line item, without overheads or profit. It adds three things: materials, labour (hours × hourly cost) and equipment (hire, consumables).
It's your starting point: below this price, you lose money.
Overheads
These are the costs not tied to a specific site: office, vehicle, insurance, accountant, phone, admin time. They exist even without a site — so you must spread them over your sales, via a percentage.
The selling coefficient
The formula fits on one line: selling price = direct cost × coefficient. The coefficient covers both your overheads and your profit. For example, a coefficient of 1.25 adds 25% to the cost.
| Line item | Direct cost | Coefficient | Selling price (excl. VAT) |
|---|---|---|---|
| Tiling (m²) | €40 | 1.25 | €50 |
| Paint (m²) | €12 | 1.30 | €15.60 |
| Labour (h) | €35 | 1.20 | €42 |
Margin and coefficient: don't confuse them
Careful: a coefficient of 1.25 is not a 25% margin. The coefficient applies to the cost. The margin is calculated on the selling price. A cost of €100 sold at €125 gives a coefficient of 1.25… but a margin of about 20% of the selling price. Know which one you're looking at.
The mistakes that eat your margin
- Underestimating labour hours
- Forgetting offcuts and consumables
- Applying too low a coefficient "to win the job"
- Not updating material prices (they move fast)
Pricing right, sustainably
- Keep a catalogue of unit prices (costs) up to date
- Set a realistic coefficient, based on your real overheads
- Compare your prices to the market to be neither too expensive nor too low
Frequently asked questions
What is the direct cost (déboursé sec)?+
It is the direct cost of a line item: materials + labour + equipment, without overheads or profit. It is your real cost.
What coefficient should I apply?+
It depends on your overheads and target margin. Many businesses sit between 1.20 and 1.40, but the right number is the one that covers YOUR real costs and profit.
What is the difference between margin and coefficient?+
The coefficient applies to the cost; the margin is calculated on the selling price. A coefficient of 1.25 corresponds to a margin of about 20% of the selling price.
How do I set my selling price?+
Start from the direct cost per line, apply your coefficient, then check the price stays consistent with the market. A price benchmark helps you position yourself.
Read also
How to do a take-off per m² (method + example)A compliant construction quote: the template and detailsThe CCTB explained simplyPrice right, protect your margin
Afrimo computes the selling price from the cost (Belgian method cost → overheads → profit) and positions you against the market with the Afrimo Index — in FR/NL/EN.
This article is informational. The coefficients and examples are illustrative: compute your own from your real overheads.