How to Price Your Work: A Guide for Tradespeople

Getting your pricing right is one of the hardest parts of running a trade business. Too high and you lose work. Too low and you are working for nothing. Here is how to find the sweet spot.

Know your costs

Before you can price a job, you need to know what it costs you to operate. Add up your monthly overheads: van costs, insurance, tools, materials storage, phone, accountant, advertising, and anything else. Divide that by the number of days you work per month. That gives you your daily overhead cost.

Set your day rate

Your day rate needs to cover your overheads, your wages, and leave some margin for profit. In the North East, day rates for tradespeople typically range from £150 to £350 depending on the trade and experience level. Do not forget to factor in holiday pay, sick days, and pension contributions if you are a sole trader.

Price per job, not per hour

Customers prefer fixed prices. It gives them certainty and avoids arguments about how long the job took. Estimate how long the job will take, add a buffer for unexpected issues (10-20%), and multiply by your hourly rate. Add materials on top.

Always quote in writing

Send a clear, written quote that breaks down what is included. List the work, materials, timeline, and total price. State what is not included too. This protects both you and the customer.

Do not race to the bottom

Competing purely on price is a losing game. If you are consistently the cheapest quote, you are probably undercharging. Compete on quality, reliability, and reputation instead. A strong Google rating and professional communication will win you work at fair prices.

Review your prices regularly

Material costs, fuel, and insurance all go up. Review your pricing every six months and adjust. Do not be afraid to put your prices up. Good customers will pay for good work.

When to walk away

If a customer is haggling aggressively, asking for cash in hand, or making unreasonable demands before you have even started, that is a red flag. It is better to say no to a bad job than to deal with problems down the line.