Many tradespeople work incredibly hard yet still feel like their bank balance does not quite reflect the effort. Underselling happens quietly – a job looks simple at first, the client seems reasonable, and you want to stay competitive. Before long, you realise you priced too low, and now you are working flat out for a thinner margin than you deserve.
Pricing properly feels uncomfortable at first, but it can transform your profitability when you get it right. The following ideas are to help you earn what your skill is worth and keep your livelihood secure.
1. Know your actual hourly cost
Plenty of tradespeople choose a number that feels about right, although this rarely covers everything. When you calculate your real hourly cost, you stop guessing and start pricing from a position of strength.
Think about:
- Fuel
- Tools and maintenance
- Insurance
- Training and qualifications
- Time spent quoting and travelling
- Admin work you cannot bill directly
Once you understand the true figure, you can build quotes that support a sustainable business rather than one that relies on luck.
2. Add profit with purpose, not guilt
Some tradespeople feel awkward adding a profit margin, yet that margin pays for future tools, downtime, holidays, and the rainy days no one expects. When you add profit deliberately, you create stability.
Try using a simple percentage so you stay consistent across every job. Profit should never be an afterthought – it is a central part of running a trade business that can survive bumps in the road.
3. Break quotes into parts instead of giving one round number
Clients see much more value when a quote is broken down clearly. It also stops them comparing your number with someone else’s without understanding the difference in quality, materials, or safety.
A breakdown can include:
- Labour
- Materials
- Waste disposal
- Specialist equipment
- Travel
- Any access issues
This style of quoting often removes pushback because the client sees exactly what they are paying for. It also gives you room to adjust individual items without discounting your entire day rate.
4. Price for the job in front of you, not the job the client describes
Clients mean well, but they rarely explain the full picture. A job described as simple sometimes hides complications behind walls, under floors, or within wiring that has been altered a number of times over the years.
Whenever something sounds too straightforward, take a moment and ask more questions. Look for access, materials needed, and risks that could slow you down. A quick site visit usually saves you from quoting too low and regretting it halfway through the work.
5. Build contingency into every quote
Unexpected hiccups appear on even the tidiest jobs – old houses reveal surprises, suppliers change stock without warning, weather causes delays etc. A small contingency protects you from absorbing these issues into your own profit.
Many tradespeople use a five to ten percent buffer. It keeps the job safe while allowing you to handle surprises calmly and clients usually accept this when it is explained clearly.
6. Try not to write quotes in the evenings when you’re tired
Late night quoting leads to mistakes, missed items, and numbers that feel safe at the time but hurt you later. Doing the quote detail during working hours helps you think clearly and charge properly. If that means blocking a morning slot once a week, the long term gain is huge. You stop leaving money on the table and start valuing your time exactly as a professional should.
7. Use option pricing to avoid downward pressure
Giving clients a single price invites negotiation. Offering options puts the control back in your hands.
For example:
- Option 1 covers the basics at your standard quality.
- Option 2 includes upgraded materials or a quicker turnaround.
- Option 3 adds a premium finish or extended guarantee.
Options shift the conversation from price cutting to value choosing. Many clients naturally pick the middle option, and your margin stays intact.
8. Charge for small jobs properly
Short jobs are rarely short once you include travel, setup, and clean up. This is where tradespeople consistently lose the most money.
Introduce a minimum charge that covers the time it takes to do the job properly. Clients understand minimum rates when you explain that travel and preparation are part of the work. This protects your day and stops you running around doing freebies.
9. Use a variation process to avoid free extras
A friendly variation process stops jobs drifting into unpaid territory. A simple line works wonders:
“I can add that to the job. I will send you the price for the extra work before I go ahead.”
This protects your time and gives clients clarity. It also stops you absorbing small tasks that slowly erode your profit.
Pricing properly is not only about money. It protects your livelihood, supports your professional reputation, and keeps stress at manageable levels during a busy season. When you quote confidently and value your skill, you attract clients who respect your work and build a business that grows steadily instead of surviving on thin margins.
At Howden, we’re here to support you whatever business you’re in, while you focus on what you do best; getting the job done.
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This is a marketing blog by Howden.