Step 1 — Work out your real day rate
Add up everything it costs to run your business for a year: van, fuel, insurance, tools, phone, software, accountancy, marketing. Add what you need to pay yourself. Then divide by your billable days — not 365, and not even 260. Most sole traders get 180–220 genuinely billable days once holidays, sickness, quoting and admin are removed.
That figure is your floor. Charge below it and you are paying to work.
Step 2 — Price the materials properly
List every material with current merchant prices — not last year's. Add a markup (10–25% is common) to cover collecting, carrying and the risk of price rises between quote and job. On longer jobs, state in the quote that material prices are fixed for a set period.
Step 3 — Add margin and contingency
Margin is profit on top of your day rate — typically 10–20% for competitive domestic work, more for specialist or awkward jobs. Add contingency for the unknowns: 5–10% on straightforward work, more where you're opening up old buildings or ground conditions are uncertain.
- Never discount your day rate to win work — discount scope instead.
- Price small jobs with a minimum charge so travel and setup are covered.
- Compare your quote against what similar jobs actually made you last time.
Step 4 — Present it like a professional
A clear, itemised quote wins more work than a cheaper vague one. Break out labour, materials and any allowances, state what's excluded, set an expiry date, and give an easy way to accept. Customers pay for certainty.
Put it into practice
Do this in minutes with the Pricing calculator
Enter your costs and target income and the calculator works out the day rate and job price you need — then send the number straight into a quote.
Sources & further reading
Common questions
- Should I quote a day rate or a fixed price?
- Fixed price for defined work — customers prefer certainty and you keep the upside of finishing efficiently. Day rate suits open-ended or investigative work where scope can't be fixed. Put either in writing.
- How do I handle customers who say I'm too expensive?
- Don't cut the rate — adjust the scope or spec. A customer who only buys on price is rarely profitable, and your day rate is already the honest cost of doing the job properly.
- How often should I review my prices?
- At least once a year, and immediately when major costs move — fuel, materials or insurance. Merchants raise prices several times a year, so check material prices before every quote.
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Related guides
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How to Calculate Your Day Rate as a Tradesman
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