Underpricing is one of the most common and damaging habits in the Irish trades. It feels like a competitive advantage. It is actually a slow drain on your business, your income, and eventually your motivation.
Here is how to price properly.
Start With Your Actual Costs
You cannot price correctly if you do not know your costs. Most tradespeople know their materials costs but underestimate or ignore everything else.
Your full cost to deliver a job includes:
Materials. The cost of everything you use on the job, including consumables and wastage.
Your labour. Your own time at a rate that reflects your skill, experience, and the going rate in your area. Do not price your own time at minimum wage. You are a skilled tradesperson with experience, insurance, and overheads.
Subcontractor costs. If you bring anyone else in, include their full cost.
Overhead allocation. Your van, fuel, insurance, tools, phone, website, accountancy fees, and any other costs of running the business. Add these up for the year and divide by the number of billable days you work to get a daily overhead cost. Include it in every quote.
Tax. Remember that what you charge is not what you keep. Your income tax, PRSI, and USC come out of your profit. Factor this in when deciding what rate you need to earn to take home a reasonable income.
Once you know your full cost per day or per job, you can add a profit margin on top. A profit margin of 15 to 25 percent is reasonable for most trade businesses and allows you to invest in the business, cover slow periods, and build financial resilience.
Do Not Price Against Your Cheapest Competitor
The cheapest tradesperson in your area is almost never a good benchmark. They may be underinsured, working cash in hand, cutting corners on materials, or simply not pricing properly and headed for burnout.
Price against the value you deliver. If you turn up on time, do excellent work, communicate well, and leave a site clean, you are worth more than someone who does not. Customers who value those things will pay for them.
When to Give a Fixed Price vs a Day Rate
Fixed price works well for defined jobs with a clear scope. The customer knows exactly what they will pay. You know what you are committing to. Works well for most residential jobs where the scope is clear before starting.
Day rate is more appropriate for jobs where the scope is genuinely unknown. Opening up walls, investigative work, or projects where the extent of the problem will not be clear until you start. Agree the day rate upfront and keep the customer updated as the job progresses.
Never give a fixed price on work where you cannot control the scope. You will either lose money or damage the customer relationship when the price increases.
The Psychology of Quoting
A quote is not just a number. It is a sales document. Two tradespeople can quote the same price and one will win significantly more work than the other based on how the quote is presented.
A strong quote includes a clear breakdown of what is included, a timeline, and any relevant details about your approach or materials. It shows you have thought about the job. It reduces the chance of misunderstandings. And it makes the customer feel they are dealing with someone professional.
Include a short note about your experience with this type of work if it is relevant. “I have completed over 30 similar projects in Co. Louth over the past five years” is reassuring to a customer making a decision.
Review Your Prices Regularly
If your prices have not changed in two or three years, they are almost certainly too low. Materials costs have increased. Your skills and experience have grown. The cost of running a business has gone up.
Review your pricing at least once a year. A modest annual increase of five to ten percent, communicated professionally to existing customers, is accepted by most without issue.
The alternative, keeping prices flat until you have to make a large jump, is harder for everyone.
Written by Maebh Collins
ACA qualified, Dundalk-based. I build websites and write SEO content for trade businesses across Ireland and the UK. If you have questions, get in touch.