How to Price Your Trade Jobs: Stop Undercharging in 2026

Most tradespeople undercharge. Not because they don't know their costs — but because they're afraid of losing the job. The irony is that undercharging often costs them more customers than it wins.

Here's how to think about pricing properly.

The Cheapest Quote Almost Never Wins

Research consistently shows that customers don't choose the cheapest quote — they choose the quote they trust most. A professional website, good reviews, clear certifications and prompt communication signal reliability. Those signals justify a higher price in the customer's mind before you've quoted anything.

The tradesperson with 80 Google reviews and a professional website will win jobs against a cheaper quote from someone with no online presence — regularly.

Day Rate vs Fixed Pricing

Day rate: You charge per day for your time. Simple to calculate, but customers often feel anxious about how many days a job will take. Works best for commercial jobs or where scope is genuinely unclear.

Fixed pricing: You quote a fixed amount for the complete job. Customers prefer it — they know exactly what they'll pay. Works best for common, predictable jobs. Requires you to be accurate in your scope assessment.

The trend is towards fixed pricing. If you can define the scope precisely, fixed pricing wins more jobs and makes for easier conversations.

How to Calculate Your Actual Day Rate

Most tradespeople calculate their day rate based on what competitors charge. The correct approach is to work backwards from what you need to earn.

• Annual income target: e.g. £60,000
• Working days per year: 52 weeks × 5 days = 260, minus holidays (25 days) and sick/admin (15 days) = 220 billable days
• Required day rate: £60,000 ÷ 220 = £273/day before materials and overheads
• Add overheads (van, insurance, tools, marketing): typically 20–30% = £327–£355/day

If your current day rate is below this, you're working hard and not making what you should. The answer isn't to work more days — it's to charge correctly and win fewer, more profitable jobs.

When to Raise Your Prices

If you're winning more than 70% of your quotes, you're almost certainly undercharging. The healthy win rate for a well-positioned tradesperson is 50–60% — high enough to stay busy, low enough that you're not leaving money on the table.

Raise your prices in January and June. Raise them 5–10% at a time. Most customers won't notice. The ones who do and object were often price-shoppers who wouldn't have been good customers anyway.