How to price a job (and still win it)
A practical guide for UK tradespeople on pricing jobs: working out labour, materials, overheads and profit, handling VAT, and quoting with confidence.
1. Work out your real day rate
Add up a year of running costs: van, fuel, insurance, tools, phone, software and accountant. Add the wage you want to take home, then divide by the days you realistically work (usually 200 to 220 once holidays, quoting visits, admin and bad weather are taken out). That figure is your minimum day rate, not your target. Our free day rate calculator at toolboxd.app/tools/day-rate-calculator does the sums for you.
2. Estimate labour honestly
Break the job into stages and estimate the hours for each one, including setup, travel, clean-up and waste runs. Most underpriced jobs come from forgetting the time around the work, not the work itself. If you're unsure, round up by half a day.
3. Price materials with a markup
List every material with current supplier prices, add 5 to 10% for waste and offcuts, then add a markup (commonly 10 to 20%) to cover the time spent buying, collecting and guaranteeing them. Say how long material prices are valid, as costs can move quickly.
4. Add overheads and profit
Overheads keep the business running; profit is what lets it grow and survive a quiet month. Many trades aim for a profit margin of 15 to 25% on top of costs. If a price only covers your costs, you're working for free.
5. Get VAT right
If you're VAT registered, show prices clearly with VAT added at the correct rate, and say whether figures include or exclude it. If you're not registered, don't add VAT at all. Customers comparing quotes notice when this is unclear.
6. Offer options instead of discounts
Rather than cutting your price when a customer hesitates, offer a basic, standard and premium version of the job. Customers feel in control, and many choose the middle option, which protects your margin.
7. Set a deposit and clear terms
For larger jobs, ask for a deposit to secure the booking and cover materials. State what's included, what isn't, how long the quote is valid, and when payment is due. Clear terms prevent most disputes before they start.
8. Send it quickly and follow up
A well-priced quote only wins if it arrives while the customer is still deciding. Send it the same day where you can, then follow up politely after a few days. Toolboxd does the sums, VAT and deposit for you, shows when the customer opens the quote, and sends the follow-ups automatically.