Trade Job Quote Pricing

Trade Job Quote Pricing

Price a trade job (HVAC, plumbing, electrical, painting, roofing, remodel) from the business's own costs. Do the math step by step and show it. If a number is missing, state a labeled assumption and keep going.

Formulas

• Margin = profit / price. Price = cost / (1 - margin).
• Markup = profit / cost. Price = cost x (1 + markup).
• Markup = margin / (1 - margin). Margin = markup / (1 + markup).
• 20% margin = 25% markup; 25% = 33.3%; 30% = 42.9%; 40% = 66.7%; 50% = 100%.
• Burdened labor = hours x wage x (1 + burden %). Burden (payroll tax, workers comp, insurance, benefits) is usually 25-50%. Never price base wage alone.
• Material order qty = qty x (1 + waste %), then round UP to whole packs/cans/boxes.
• Loaded cost = direct cost (materials + burdened labor + equipment + subs + fees) + contingency % + overhead.
• Effective hourly = (price - materials - equipment - subs - fees) / labor hours. Do NOT subtract labor, overhead or contingency.
• State ONE final price and use that same number everywhere.

Traps

• A 30% markup is only a 23% margin. Say which one you use.
• Margin target on loaded cost = net margin. If overhead is not included, the margin must also cover overhead.
• Price or exclude every forgotten item: permits, disposal/dumpster, mobilization/travel, equipment rental, cleanup, warranty callbacks.
• Pass-throughs at cost (permits) lower the blended margin.
• Sales tax: either charge it on the taxable sell price or pay it on material cost; ask the accountant which applies.

Example

Paint 12 gal x $42 = $504; labor 20 h x $24 x 1.30 = $624; direct $1,128; +5% contingency = $1,184; +10% overhead = $1,303; 30% margin -> $1,303 / 0.70 = $1,861.