How to price your services: a complete guide

The base formula: materials + labour + margin

Many tradespeople price jobs "by eye", based on what they usually charge or what they think the client will accept. This works until you take on a job that costs you more than you earn. The solution is a simple formula that ensures every job makes a profit.

Material costs are the most straightforward. Add up everything you'll buy: cable, pipe, paint, fittings, whatever it is. Use real supplier prices, not estimates. If a roll of cable costs €3.80 a metre at your local merchant, use €3.80, not "about four".

Labour cost is where most people get it wrong. It's not just time on site. It includes travel, time buying materials, time putting the quote together, and time messaging the client back and forth. If a job takes 6 hours on site but you spent an hour travelling and half an hour quoting, that's 7.5 real hours.

Profit margin is what's left after paying for materials and your time. It should sit between 20% and 40% depending on the type of work, local competition, and your experience. A tradesperson with fifteen years' experience and a good reputation can charge a 35-40% margin. Someone starting out may need 20-25% to be competitive.

The complete formula: Final price = (Material cost + Labour cost) x (1 + margin). Example: materials €200 + labour €300 = €500 x 1.30 (30% margin) = €650.

Common pricing models

Tradespeople in Ireland mainly use three pricing models. Each works better for different types of work.

Hourly rate is the most common for repairs and small jobs. The rate varies by trade and county. To calculate your hourly rate, add up all your monthly fixed costs (insurance, tools, van, fuel) and divide by the number of billable hours. If your fixed costs are €800 a month and you work 140 billable hours, your base cost is roughly €5.70 an hour. Add what you want to earn on top and you have your rate.

Price per square metre is common in painting, flooring, and insulation work. This model is transparent for the client as they can see the area and the price, and can compare it against other quotes.

Fixed price is when you give a total for the complete job. It works well for jobs you've done many times and know exactly how much they cost. The risk is yours: if it takes longer than expected, your margin shrinks. But the client likes it because they know exactly what they'll pay.

Pricing mistakes that cost money

There are mistakes nearly all tradespeople make early on, and some keep making for years. Recognising these mistakes is the first step to stop losing money.

Not charging for travel is the most common mistake. If you're 30km from the job, that's 60km there and back, plus fuel, wear on the van, and time you're not billing. Include travel in the quote, either as a separate line or built into the hourly rate. Just don't ignore it.

Charging only for time on site ignores all the invisible work: going to the merchant to buy materials, putting the quote together, answering client messages, dealing with the unexpected. If you charge €25 an hour but only count the hours on site, you're giving away 30% of your time for free.

Undervaluing experience is another common mistake. If you solve in two hours a problem that another tradesperson takes six to fix, you shouldn't charge less for being faster. The client is paying for the solution, not the time. Charge a fair price for the solution, not a discount for being efficient.

Not updating prices with inflation also costs money. If you charged €22 an hour in 2023 and charge the same in 2026, you're effectively earning less. Materials went up, fuel went up, the cost of living went up. Review your prices at least once a year.

Giving discounts without reason devalues your work. If the client asks for one, the answer isn't to lower the price, it's to explain what's included and why the price is fair. If you really want to offer something, remove an item from the quote rather than lowering the total.

Using technology to quote faster

The time you spend writing quotes is time you're not earning. If you spend 30 minutes per quote and do three a day, that's 1.5 hours daily, nearly 8 hours a week, spent writing numbers instead of working.

With Prummo, you dictate the quote by voice in a minute. Say the materials, quantities, and prices, and Prummo organises everything automatically. Even if you need to adjust a line or two, the whole process takes 2 to 3 minutes instead of 30. By the end of the week, you recover hours you can use for more jobs or for rest.

Quoting speed also affects the prices you can charge. The first tradesperson to respond with a professional quote has less pressure to lower prices. When the client has already received three quotes and yours is the last, comparison and haggling are inevitable. When yours is the first and well presented, the price is more easily accepted.

A clear deposit structure also lets you maintain fair prices. Many tradespeople lower prices because they know the client will find the total daunting. Structuring a €3,000 job as a €1,200 deposit and €1,800 on completion removes that hesitation without you dropping a cent off the price.

Save items you use frequently as templates. In Prummo, you can save templates with descriptions and prices that you reuse across quotes. No need to dictate the same things every time. Saves time and keeps your pricing consistent.