How to Price a Job as a Tradesperson in 2026
One of the biggest mistakes tradespeople make isn’t bad workmanship — it’s bad pricing. Undercharging is one of the most common reasons trade businesses struggle, and it usually comes down to one thing: not having a clear system for working out what a job actually costs.
This guide walks you through exactly how to price a job properly, so you’re covering your costs, paying yourself fairly, and still winning work.
Why Tradespeople Undercharge
Most tradespeople who undercharge aren’t bad at business — they’re just pricing from the gut. They think about what the materials cost, add a rough daily rate, and hope it covers everything else.
It usually doesn’t.
Here’s what gets forgotten:
- Travel time and fuel
- Time spent quoting and admin
- Tool wear and replacement
- Insurance, certifications, and memberships
- Slow periods when there’s no work coming in
- Tax and National Insurance
Once you account for all of that, your real hourly cost is usually much higher than you think.
Step 1: Know Your Minimum Hourly Rate
Before you can price any job, you need to know what it costs just to keep your business running — your break-even rate.
Here’s a simple way to work it out:
Annual business costs might include:
- Van costs (finance, fuel, insurance, tax): ~£6,000–£10,000
- Tools and equipment: ~£1,000–£3,000
- Insurance (public liability, tools, van): ~£1,500–£3,000
- Phone, software, marketing: ~£500–£1,500
- Training and certifications: ~£500–£1,000
Add those up, then divide by your billable hours per year. Most tradespeople work around 200 days a year and bill roughly 6 hours per day — that’s around 1,200 billable hours.
Example:
- Total annual costs: £15,000
- Billable hours: 1,200
- Break-even rate: £12.50/hour
That’s just to break even. Add your desired profit on top — most tradespeople aim for at least £25–£45/hour profit depending on trade and location — and your minimum charge rate becomes clearer.
Step 2: Calculate Your Material Costs
Always price materials at cost plus a markup — not at cost price alone.
You’re sourcing, collecting, transporting, and managing materials. That takes time and effort. A standard markup is 15–25% on top of what you paid.
Example:
- Materials cost: £200
- 20% markup: £40
- Charged to customer: £240
Never pass materials through at trade price. You’re not a merchant — you’re providing a service that includes procurement.
Step 3: Estimate the Time Accurately
This is where most pricing goes wrong. Tradespeople tend to be optimistic about how long a job will take — and then get caught out.
Tips for better time estimation:
- Add a contingency buffer of 10–20% to your time estimate, especially on older properties or jobs where you can’t see everything upfront
- Include prep and clean-up time — these aren’t free
- Factor in travel if the job is more than 15–20 minutes away
- Look at past similar jobs — if you’re using job management software like Tradify, your job history tells you exactly how long things actually take
Step 4: Decide — Day Rate, Fixed Price, or Hourly?
There’s no single right answer, but here’s when each works best:
Hourly Rate
Best for: small jobs, repairs, and call-outs where the scope is unclear.
The customer pays for your time. Simple and fair, but some customers feel uneasy not knowing the final cost upfront.
Day Rate
Best for: longer jobs where the scope is roughly known but materials aren’t fully confirmed.
Typical day rates in the UK in 2026 range from £200–£450/day depending on trade and region — with London and the South East at the higher end.
Fixed Price
Best for: larger jobs where you’ve surveyed the work properly and can quote confidently.
Fixed pricing gives customers certainty and removes the awkwardness of hourly billing. It also rewards you for working efficiently. The risk is yours if the job overruns — which is why your contingency buffer matters.
Step 5: Build Your Quote Properly
Once you know your costs, a professional quote should include:
- A clear description of the work being done
- Materials listed with quantities
- Labour costs (you don’t have to show your hourly rate — just the total)
- VAT if you’re registered
- Payment terms
- How long the quote is valid for (14–30 days is standard)
A professional quote builds trust before the job even starts. If you’re still sending prices in a text message, customers are comparing you to someone who sent a proper branded document — and making a judgment call.
Using quoting software like Tradify means your quotes always look professional, include everything they need to, and can be sent from your phone in minutes.
Step 6: Don’t Race to the Bottom
If a customer pushes back on your price, resist the urge to immediately drop it. A few things to try first:
- Explain your value — your experience, guarantees, and reliability have a cost
- Offer a reduced scope — can you do part of the job now and phase the rest?
- Hold firm — customers who only want the cheapest price are often the hardest to work with
The jobs you want are from customers who value quality. Winning work by being the cheapest is a race you don’t want to win.
A Simple Pricing Formula
Here’s a formula you can use as a starting point for any job:
Job Price = (Hourly Rate × Hours) + (Materials × 1.2) + Contingency Buffer
Example:
- Hourly rate: £40
- Estimated hours: 6
- Materials: £150
- 20% materials markup: £30
- 15% contingency on labour: £36
Total quote: £456 + VAT if applicable
Use Software to Make Pricing Faster
Once you’ve got your rates sorted, the best thing you can do is get them into a system so you’re not starting from scratch every time.
Tradify lets you save your labour rates and common materials as line items, so building a quote takes minutes rather than half an hour. Your quote history also helps you see which jobs are most profitable — so you can focus on winning more of them.
Try Tradify Free — Start Quoting Properly
Once you’ve got your pricing right, read our guide on how to write a quote that wins jobs to make sure the presentation matches.