How to price jobs as a tradesperson
Pricing is where a lot of good tradespeople lose money. They are busy, but at the end of the year there is less left than there should be. Pricing properly starts with knowing what your time actually costs.
Know your real day rate
Add up everything the business costs in a year that is not materials for a specific job: van, fuel, insurance, tools, phone, accounts, website, training, and the money you need to pay yourself. Then estimate how many days you genuinely bill in a year, after holidays, bad weather, quoting, admin and travel. Divide one by the other. That is what a day of your time must bring in before profit, and it is usually higher than people expect.
Price the job, not just the hours
Estimate the time honestly, including setting up, clearing up and travel. Add materials with a margin for wastage and the time spent collecting them. Then think about risk: old houses hide surprises, awkward access slows everything down. Either price for it, or say in the quote what is not included.
Write quotes people trust
A clear written quote says what is included, what is not, how long it will take, when payment is due and how long the price stands. It protects you as much as the customer. Customers comparing three quotes often choose the clearest one, not the cheapest.
Stop competing on price alone
There will always be someone cheaper. Win on the things they cannot copy: reviews, photos of your work, turning up when you say, communicating well. Your website and Google profile are where customers see those before they ask for a price.
Deposits and payment terms
For bigger jobs, a deposit to cover materials protects you if a customer cancels or delays, and shows they are committed. State the payment terms in the quote: when the balance is due, how to pay, and what happens if a job runs on. Clear terms up front avoid awkward conversations at the end.
Review your prices every year
Costs go up every year: fuel, materials, insurance, tools. If your prices do not, you are taking a pay cut without noticing. Recalculate your day rate once a year and adjust your prices for new quotes. Existing customers rarely mind a sensible increase from someone they trust.
Keep a simple record of how long jobs actually took compared with your estimate. It is the quickest way to spot the jobs you are consistently underpricing.
Common questions
- Should I charge by the hour or by the job?
- Fixed prices are easier for customers to compare and accept, and reward you for working efficiently. Hourly suits small or unpredictable jobs. Many trades use both.
- Should I put prices on my website?
- Guide prices or 'from' prices for common jobs help customers decide and filter out time-wasters. Bigger jobs are usually quoted after a visit.
- How do I handle customers who say it is too expensive?
- Explain what is included and why. If they still want cheaper, it is often better to let that job go.
If you would rather somebody just did it
I build websites for self-employed tradesmen and small businesses across the UK: £249.99 to build, then £49.99 a month to host, maintain and update it. The sites I have built show on page one of Google for 103 searches between them, in Search Console.