How to Price Your Work: A Guide for Tradespeople

Before pricing any job, know what it costs to run your business: **Fixed costs** (monthly): Van, insurance, tools, phone, software, accountant **Variable costs** (per job): Materials, fuel, consumables, waste disposal **Your time**: What you need to earn per day/week/year **Hidden costs**: Training, downtime, quotes that don't convert, callbacks Add up fixed costs, divide by working days, and that's your daily overhead before you've earned a penny.

Formula: **(Target income + Annual costs) ÷ Billable days = Day rate** Example: - Target income: £50,000/year - Business costs: £15,000/year - Total needed: £65,000 - Billable days: 200 (allows for holidays, admin, quotes) - Day rate: £325/day That's your minimum. You may charge more for specialist work, emergencies, or clients who can afford it. Remember: You won't bill 5 days every week. Account for non-billable time.

**Day rate**: Charge per day worked. Simple and transparent. **Hourly rate**: More flexible but harder to quote. Best for repairs. **Fixed price**: Quote a total for defined scope. Client prefers certainty. **Square meter/unit**: Price per m², per socket, per radiator. Easy to scale. **Cost-plus**: Materials at cost plus markup (15-30%). Labor charged separately. Most tradespeople use a mix: fixed price for standard jobs, day rate for variable work.

Know what others charge — but don't just copy them. **Research**: Ask suppliers, check trade forums, talk to other tradespeople. **Position yourself**: Budget, mid-market, or premium? Each has its customers. **Value over price**: Clients pay more for reliability, cleanliness, communication. **Specialist premium**: Niche skills command higher rates. Warning: The cheapest quote often loses — it signals low quality. Aim for mid-to-premium.

If you're always busy, your prices are too low. **Signs to raise prices**: - Winning every job you quote - No time for family or breaks - Costs have increased (materials, fuel, insurance) - Your skills have improved - Demand exceeds capacity **How to raise prices**: - New clients get new prices immediately - Existing clients: give notice with next renewal or project - Raise by 5-10% annually as a baseline - Larger increases need justification ("costs have risen 15%")