Stop Guessing Your Prices: How to Price Jobs for Profit Every Time
🧩 Stop Guessing Your Prices: How to Price Jobs for Profit Every Time
💥 Introduction
You finish a job, look at the bank balance, and wonder:
“Where did the profit go?”
If you’ve ever under-quoted, eaten hidden costs, or felt awkward raising prices, you’re not alone.
Most tradespeople and showroom owners guess their pricing—then hope for the best.
In this post you’ll learn:
Why guessing kills profit
The simple formula for setting winning prices
How to stop awkward money conversations before they start
Ready to get paid what you’re worth? Let’s dive in. 👇
🚨 Why Guessing Your Price Is So Dangerous
Hidden Cost Average £ Lost per Job*
Extra travel / fuel £30–£50
Forgotten prep / disposal time £60–£100
“Little extras” clients add on-site £40–£80
Post-job fixes £50+
*Figures from client audits we’ve run in 2025.
Small leaks sink big ships. One under-quoted job a week can wipe out £8-10k a year.
If you’ve read our post on busy vs. profitable you already know: revenue means nothing without healthy margins. (Internal link → busy-vs-profitable-trades-business)
🧠 The 3 Variables That Drive Every Quote
Time (hours on-site + prep + travel)
Materials (plus wastage and supplier fluctuations)
Profit Margin (the amount you keep after everything else)
Get any one wrong and the whole job falls apart.
✅ The Simple ‘TPM’ Pricing Formula
Total Price = (Time × Hourly Rate) + (Materials × Markup) + Desired Profit Margin
1. Calculate Your True Hourly Rate
Add your wage + overheads + “hidden hours” (admin, quoting, clean-up).
Example: You want £25/hr take-home + £8/hr overhead → £33/hr real cost.
2. Mark Up Materials
Apply a 10-20 % markup to cover collection time, wastage, and supplier price jumps.
3. Add Desired Profit
Most trades aim for 20-30 % margin.
Be explicit: “Profit isn’t greedy; it keeps my business alive and guarantees quality.”
🔧 Common Pricing Mistakes & Fixes
Mistake Fix
Using “day rates” for every job Quote by scope + value, not just hours.
Forgetting travel & parking Build a mileage/parking line item into quotes.
Fear of charging for extras Use a variation order form: client signs off before extras start.
Rushing the quote Use templates + a 5-minute review rule.
Need more structure? Check out our post on 5 Systems Every Trades Business Needs for quoting templates and follow-up automation. (Internal link → 5-systems-every-trades-business-needs)
🏷️ Handling the “That’s Expensive” Objection
Acknowledge: “I understand keeping costs down is important.”
Anchor Value: Recap the outcome: “You’ll have a new boiler that cuts bills by 20 %.”
Offer Choices: Good-Better-Best tiers give control without discounting.
📋 Self-Audit Table – Is Your Pricing on Point?
Question Yes / No
I know my exact hourly cost ⬜ / ⬜
I mark up materials consistently ⬜ / ⬜
I add travel, prep & disposal to every quote ⬜ / ⬜
I hit my desired profit margin on > 80 % of jobs ⬜ / ⬜
I use a variation form for extras ⬜ / ⬜
4+ “No” answers? You’re bleeding profit.
💬 Final Thoughts
Guessing prices keeps you busy, not profitable.
When you price with a clear formula, you:
Protect your margins
Feel confident presenting quotes
Attract clients who respect your value
📞 Ready to Price With Confidence?
Book a free 30-minute strategy call. We’ll walk through your real hourly cost, margin target, and quoting process—so you stop leaving money on the table.
