Price the job so you make money and keep customers coming back
Charge for value, not just hours, and use a simple checklist to build consistent, profitable estimates.
Charge for the result first, then break it down so the customer understands. Start by deciding the minimum profit margin you need on every job, then price materials, labor, and risk to hit that target.
Set a profit-first target
Decide a percent margin or dollar markup you require before you write prices. Treat that as a non-negotiable cost, the same way you treat parts and labor. If a job does not reach your minimum, raise the price or walk away.
Price materials realistically
Use current invoice or supplier prices, include taxes and delivery if you pay them, and round up for small unknowns. For common items keep a parts price list so you avoid looking up prices on every estimate.
Price labor as value, not just minutes
Estimate the true time the job will take including travel, setup, paperwork, and cleanup. Multiply by a labor rate that covers wages, payroll burden, and overhead. When appropriate, price by the result (fix, replace, performance) rather than a strict time estimate.
Add a job-specific risk factor
Increase the price for known uncertainties: bad access, undocumented equipment, overtime windows, or long lead times. Use a simple flat fee or a percentage applied to labor and parts.
Be transparent but firm
Show customers a clear breakdown: parts, labor, risk, and margin. Explain why the price is what it is, not every cost detail. Offer options: a lower-cost repair, a higher-quality replacement, and the recommended choice.
Use common-sense rules to speed decisions
- Keep a library of go-to prices for typical repairs
Review actuals after each job. Track where you underbid and which estimates won easily. Over time you will refine your parts list, labor times, and risk allowances so pricing becomes faster and more accurate.
A consistent, profit-first approach keeps your business healthy and gives customers predictable, honest pricing they can trust. Toss in a little humor on the estimate and you might earn a tip or two.