How to price a job without underselling yourself
Most tradespeople charge too little. Here is a simple framework for pricing any job confidently — including how to present your quote so customers say yes.
Why tradespeople undercharge
Ask most tradespeople how they price a job and they will say: "I work out the materials, figure out how long it will take, and add a bit for my time."
That approach almost always results in undercharging. Here is why:
It ignores overhead. Your van, insurance, tools, fuel, phone, accountant — these all cost money and they all need to be covered by what you charge.
It underestimates time. Every job takes longer than expected. The part that does not fit. The access problem nobody mentioned. The extra hour at the end.
It ignores your value. You are not charging for your time — you are charging for your skill, your certification, your reliability, and your guarantee.
A better pricing framework
Step 1 — Calculate your day rate properly
Start with what you need to earn per year. Be honest. Include salary, pension contribution, holiday pay (self-employed tradespeople often forget to factor in unpaid holiday), and a profit margin.
Divide by your billable days (roughly 220 days for a full working year after holidays, training, and admin time).
That is your minimum day rate. Most tradespeople are shocked when they work this out properly.
Step 2 — Price the job, not the day
Do not tell customers your day rate. Price the complete job: survey, materials, labour, disposal, and a contingency for the unexpected.
Customers prefer a fixed price. It gives them certainty. And it means if the job runs smoothly, you make more money.
Step 3 — Add value, not just cost
Your quote should explain what is included and why it justifies the price. Gas Safe registration, 10 years experience, parts guarantee, clean and tidy work — these all justify higher prices.
Step 4 — Anchor your price
If you are presenting options, lead with the most comprehensive (and most expensive) option first. Everything else looks more affordable by comparison. This is standard pricing psychology used by every industry.
The test
Before sending a quote, ask yourself: if I win this job at this price, will I be glad I won it in 3 months?
If the answer is yes — send it.
If the answer is no — the price is too low.
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