Support Cost Allocation
Allocate support costs to pricing tiers to protect margins.
Quick checklist
- Estimate support hours by tier.
- Convert hours to per-account cost.
- Include support costs in COGS.
- Adjust tier pricing to hit margins.
- Review support costs quarterly.
Step-by-step
- Measure support time by plan.
- Convert time to cost per account.
- Add support cost to unit cost model.
- Recalculate tier prices.
- Track margin impact by tier.
What to watch
- High-touch tiers often hide support costs.
- Support costs rise after pricing changes.
- Unpriced support erodes margins.
Common mistakes
- Using blended support costs for all tiers.
- Ignoring onboarding labor.
- Treating support as fixed cost only.
