How to price a building job so you actually make money
Winning work at the wrong price is how builders go broke. A clear-headed approach to pricing for margin.
Cost is not price
Too many builders price by adding a rough margin to material and labour costs, then wonder where the profit went. The costs of a job are only part of the picture — you also have to cover overheads (vehicles, insurance, admin, tools, downtime) and leave a genuine profit on top.
Know your overhead rate
Work out your annual overheads and what share each job needs to carry. Adding that to direct costs, then applying a margin, gives a price that actually keeps the business running — not just one that covers the immediate outlay.
Be consistent
Discounting to win work erodes the margin you need to survive lean periods. A consistent, defensible markup — and the confidence to hold it — is what separates builders who grow from those who scrape by.
Review after every job
Compare quoted versus actual on completed jobs. The patterns you find — underestimated labour, forgotten items — are the cheapest lessons you'll ever get.
