Pump, Compressor & Rotating Equipment Assembly worked example

Quote Margin with quoted price per assembled unit of 63 units: a worked example in pump, compressor & rotating equipment assembly

Here is what the math looks like when conditions slip. We hold every other input steady and drop quoted price per assembled unit to 63 units, then walk the calculation through step by step. Quote Margin is the difference between what you quote a customer for an assembled pump or compressor and your fully loaded cost to build it, expressed both in dollars and as a percentage of a chosen basis.

The inputs for this scenario

  • Quoted price per assembled unit: 63 units (the input this scenario stresses; the baseline uses 125)
  • Fully loaded cost per assembled unit: 100 units (held at the documented default)
  • Reference basis for margin percent: 100 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Quote Margin margin = available value - required value.
  • Margin works out to -37 % at these inputs, and this is the headline figure for the scenario.
  • Absolute margin works out to -37 value at these inputs.
  • Available amount works out to 63 value at these inputs.
  • Required amount works out to 100 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where quoted price per assembled unit sits at 125 units and the headline result is 25 %, this scenario comes in 248% below the baseline at -37 %.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to quoted price per assembled unit, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The percent depends entirely on the reference basis you choose — dividing by cost gives markup, dividing by price gives true margin — so label which one you mean.

Results at a glance

  • Margin: -37 % (headline result)
  • Absolute margin: -37 value
  • Available amount: 63 value
  • Required amount: 100 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Quote Margin calculator, set quoted price per assembled unit to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.