How to price your services: a complete guide

The base formula: materials + labour + margin

Many professionals price jobs "by eye", based on what they usually charge or what they think the client will accept. This works until you accept 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 will buy: cable, pipe, paint, MCBs, taps, whatever it is. Use real supplier prices, not estimates. If a roll of cable costs 3.80 per metre at your supplier, use 3.80, not "about 4".

Labour cost is where most people get it wrong. It is not just time on site. It includes travel (return journey), time buying materials, time creating the quote, and time communicating with the client. If a job takes 6 hours on site but you spent 1 hour travelling and 30 minutes quoting, that is 7.5 real hours.

Profit margin is what remains after paying for materials and your time. It should be between 20% and 40% depending on the type of work, local competition, and your experience. A professional with 15 years of experience and a good reputation can charge 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

Service professionals 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 region. To calculate your hourly rate, add up all your monthly fixed costs (insurance, tools, vehicle, fuel) and divide by the number of billable hours. If your fixed costs are 800 per month and you work 140 billable hours, your base cost is 5.70 per hour. Add what you want to earn per hour and you have your rate.

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

Fixed price is when you give a total for the complete job. It works well for jobs you have 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 will pay.

Pricing mistakes that cost money

There are mistakes nearly all professionals make early on, and some continue 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 live 30 km from the job, that is 60 km return, 45 minutes to an hour of time, plus fuel and wear. Include travel in the quote, either as a separate line or diluted in the hourly rate. But do not ignore it.

Charging only for time on site ignores all the invisible work: going to the supplier to buy materials, creating the quote, answering client messages, dealing with unexpected issues. If you charge 25 per hour but only count the hours on site, you are giving away 30% of your time.

Undervaluing experience is another common mistake. If you solve in 2 hours a problem that another professional takes 6 hours to fix, you should not 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 per hour in 2023 and charge the same in 2026, you are 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 a discount, the answer is not to lower the price; it is to explain what is included and why the price is fair. If you really want to offer something, remove an item from the quote rather than lowering the price.

Using technology to quote faster

The time you spend writing quotes is time you are not earning. If you spend 30 minutes per quote and do 3 per day, that is 1.5 hours daily, nearly 8 hours per week, spent writing numbers instead of working.

With Prummo, you dictate the quote by voice in 1 minute. Say the materials, quantities, and prices, and the AI organises everything automatically. Even if you need to adjust a line or two, the total process takes 2 to 3 minutes instead of 30. By the end of the week, you recover hours that you can use for more jobs or for rest.

Quoting speed also affects the prices you can charge. The first professional to respond with a professional quote has less pressure to lower prices. When the client has already received 3 quotes and yours is the last, comparison and discount requests are inevitable. When yours is the first and well-presented, the price is more easily accepted.

Installment payment also lets you maintain fair prices. Many professionals lower prices because they know the client will find it expensive. With installments, a 3,000 euro job becomes 3 payments of 1,000. The client does not ask for a discount because the monthly amount is comfortable. You receive the 3,000 immediately.

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 ensures price consistency.