How to Price Your Work: A Tradesperson's Guide

Pricing is one of the most painful topics for tradespeople. Some undercharge out of fear of losing a client; others pick a number at random and end up working at a loss. Here is how to get it right.

Why "same as competitors" is not a strategy

Watching the market matters, but blindly copying prices is risky. You do not know their cost base, overheads, or speed. What looks like a standard rate may actually be unprofitable for you. Start with your own numbers — then compare with the market.

Step 1. Calculate your daily cost base

List every monthly work-related expense: tool depreciation, consumables, transport, advertising, taxes, protective equipment. Divide by working days — that is your daily break-even.

Step 2. Set your income target

How much do you want to take home each month? Divide by working days and add your cost base — that is your daily rate. Anything below the first number means you are losing money.

Step 3. Quote projects precisely

A proper quote includes exact scope, complexity, time with a 20% buffer for the unexpected, and material costs with a 10–15% markup for logistics and wastage.

Step 4. Stop being afraid to name your price

Low prices attract clients who choose on price alone — they haggle, nitpick, and pay late. Clients who value quality pay fairly. Explain your price; do not apologise for it.

Step 5. Use different payment structures

Fixed price for well-defined scopes. Hourly for diagnostics and emergency call-outs. Staged payments for large projects. Always take a 30–40% deposit — it protects your time, not your ego.

When to raise your rates

If more than 80% of enquiries convert, you are underpriced. Raise rates by 10–15% and see what happens. Good clients stay. Other triggers: a year has passed, new training, new tools, 20+ positive reviews.

Bottom line

A fair price is a calculation: your costs + desired profit + complexity adjustment. Tradespeople who know their numbers work less, earn more, and choose better clients.