Start with the real cost of an hour
Work out what an hour of your time, or your operative's time, costs you. Include wages, tools, vehicle, insurance, software, admin and the hours you cannot charge for, such as travel and quoting. Your hourly cost is higher than the hourly pay.
Add labour, materials and travel
Estimate the hours on site, then add materials at your trade price, plus a handling charge for sourcing them. Add travel time and parking or congestion costs where they apply.
Add your margin
Margin is the part of the price you keep. A 25% markup on cost is not the same as a 25% margin on the price. A job that costs £100 to do sells at £125 with a 25% markup, which is a 20% margin. To make a 25% margin, divide your cost by 0.75, which gives about £133.
Pricing work you subcontract
If a subcontractor does the job, your cost is their price plus any materials, travel and the time you spend managing the job. Add your margin on top of the total. Check the margin before you send the quote, not after.
An example with made up numbers
A tap repair takes one hour on site and 30 minutes of travel. Your cost is £40 an hour, so labour and travel cost £60. Materials cost £12. Total cost is £72. For a 30% margin, divide by 0.7, which gives about £103 before VAT. These numbers are only an example. Use your own costs.
VAT and the quote
If you are VAT registered, add VAT to the price you quote at the right rate for the work, which is often 20%. Say what is included, what is not, and how long the quote stays open.
Where Gaffio helps. Gaffio shows the client price and the subcontractor cost side by side with your margin before you send a quote, with VAT set per line.