---
title: "Customer profitability: how to calculate it | attendo"
description: "What customer profitability is, why hardly anyone calculates it, the five costs to add to what you bill and the mistake of checking only a few customers."
url: "https://attendo.me/en/glossary/customer-profitability"
lang: "en"
---

# Customer profitability: how to calculate it properly

Also known as: Account profitability

Customer profitability is the difference between what you bill an account and what it costs you to serve it.

## Why hardly anyone calculates it

Because the two figures live in different places. What you billed is in the ERP. What it costs to serve is in technicians’ hours, materials and travel, which are usually in another system or not recorded at all. Without joining them, profitability is a guess.

## The five costs to add up

1. Logged hours at their hourly cost, including overhead and not just salary.
2. Materials and spare parts used.
3. Travel and expenses.
4. Non-billable admin and support hours.
5. The cost of [reopened tickets](https://attendo.me/en/glossary/reopened-ticket) and second visits.

## What often shows up the first time

It is common to find that a large customer costs more than it bills, sometimes for years. The renegotiation conversation is uncomfortable, but with the report in front of you it is a conversation about data, not impressions.

## The usual mistake

Calculating it only for the customers who “feel off.” It has to be done across the whole customer base: the surprises are where nobody is looking.

## In attendo

Profitability by customer and by [contract](https://attendo.me/en/modules/contracts-and-sla) joins the hours, materials and travel logged in attendo with what you billed in the sales documents that go to your [ERP](https://attendo.me/en/modules/erp-integrations). The ERP issues the invoice: attendo is not an ERP or accounting software.

- [attendo CRM](https://attendo.me/en/crm)

## Where it is used in attendo

### Modules

- [Contracts and SLA](https://attendo.me/en/modules/contracts-and-sla): Scope, SLA and hour bank, measured on every ticket
- [Time tracking](https://attendo.me/en/modules/time-tracking): Time per document and working time records, where work happens
- [ERP integration](https://attendo.me/en/modules/erp-integrations): Odoo, SAP Business One, Business Central and Holded, connected
- [AI-Chat and DB Assistant](https://attendo.me/en/modules/ai-chat): Ask in plain language. Get answers from your data, with the source.
- [Business documents](https://attendo.me/en/modules/business-documents): Quotes, orders and delivery notes in sequence; invoices in your ERP
- [Projects and construction](https://attendo.me/en/modules/projects): Jobs and plant shutdowns with line items, progress and live cost

### Industries that use these modules

- [Consulting and professional services](https://attendo.me/en/industries/professional-services)
- [IT services and MSPs](https://attendo.me/en/industries/it-services)
- [Equipment manufacturers and distributors](https://attendo.me/en/industries/equipment-manufacturers)
- [Energy and renewables](https://attendo.me/en/industries/energy-renewables)
- [And any other business](https://attendo.me/en/industries)

## Related terms

Support and service

### Hour bank

Prepaid hours · block of hours

An hour bank is a block of service hours bought in advance that is drawn down as work is done.

Sales and customers

### Churn

Customer churn · churn rate

Churn is the loss of existing customers, usually because they do not renew their contract.

Sales and customers

### Sales pipeline

Pipeline

The sales pipeline is the set of open sales opportunities, organized by the stage each one is in.

[See all 53 glossary terms](https://attendo.me/en/glossary)

## Shall we look at it with your data?

We will show you how what you just read works in attendo, with your own assets, tickets and customers. If it is not a fit, we will tell you.

- With your operation, not a generic demo
- A real person from our team replies
- No cold calls afterwards

Would you rather talk first?

- Phone [+34 910 053 530](tel:+34910053530)
- Email [sales@attendo.me](mailto:sales@attendo.me)
- Monday to Thursday 9:30 AM to 6:30 PM and Friday 9:30 AM to 2:30 PM (Spain time)