How to Price a Job Properly as a Tradesperson

Most tradespeople price jobs the same way: look at what the lad down the road charges, knock a bit off, and hope for the best. The problem is, the lad down the road is probably undercharging too.

Start with your real costs

Before you quote a single job, you need to know what it actually costs you to operate. Not just materials. Everything. Van insurance, fuel, tools, phone bill, accountant fees, public liability, your own wage. Add it all up for the year and divide by the number of billable hours you can realistically work.

That number is your break-even rate. Anything below it and you’re paying to work.

Add your margin

Once you know your break-even, add your profit margin on top. This is the money that grows your business. It funds new equipment, covers quiet months, and eventually lets you hire. A healthy margin for most trades is 20–35% on top of costs.

Factor in the job, not just the hours

Some jobs are harder than others. A bathroom refit in a 1970s bungalow with dodgy plumbing is not the same as a new-build install. Price for complexity, access, travel time, and the likelihood of surprises behind walls.

Stop competing on price

If the only reason a customer picks you is because you’re the cheapest, they’ll leave the moment someone cheaper comes along. Compete on reliability, quality, and communication instead. The right customers will pay properly for a tradesperson they can trust.

The first step is knowing your numbers. Once you do, pricing stops being a guessing game and starts being a business decision.