 Most trades businesses think they have a pricing problem. Usually, they don’t. They have a: “I’ve never actually worked out what this job really costs me” problem.
On the surface, pricing jobs seems simple. Look at the work, add materials, factor in labour, give the customer a number. Maybe you work off a day rate, maybe you go off what others charge. The work keeps coming in, so it feels like it’s working. But that doesn’t necessarily mean the jobs are profitable. Most trades businesses only price the obvious bits:
What gets missed is everything underneath:
None of it looks major individually. Over time, it adds up. That’s why a lot of trades businesses stay busy but still struggle with cash flow and profit margins. Day rates are another common issue. They feel simple and safe, but they’re often inaccurate. Some jobs fly, others drag on, and unless labour and job costs are being tracked properly, it’s hard to know which jobs are actually making money. The same thing happens with materials. A bit underestimated here, something missed there, extra time on a job - over time it eats into profit. This is why many trades businesses feel like they’re working flat out without really getting ahead. Usually, the problem isn’t simply: “Prices are too low.” It’s inconsistent pricing and poor visibility over actual job costs. The fix usually isn’t just charging more. It’s understanding what jobs actually cost, pricing consistently, and stopping profit leaks before they become normal. Once you’ve got that, pricing becomes a lot less of a guessing game. See why Most Trades Feel Busier Than They Should
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