Pricing a quote without making mistakes: the 4-step method

Most lost quotes are not lost because of the price, but because the price isn't explained. A client who understands where an amount comes from rarely argues it. Here is the breakdown we see with the most successful craftsmen.

1. Labor

Count in actual hours, travel included, not in optimistic hours. If an installation takes you a day with unforeseen events, invoice a day. An all-inclusive hourly rate avoids oversights: taxes, holidays, administrative time.

2. Materials

Use this month's supplier prices, not last year's. Add a loss margin for cutting and breakage — 5 to 10% depending on the material.

3. Overheads

Vehicle, tools, insurance, phone, accountant: these costs exist even without a project. Spread over your annual volume, they often represent 15 to 25% of turnover.

4. Margin

Margin is not a bonus, it is what absorbs the unexpected and finances your investments. Removing it to win a project means working at a loss from the very first mishap.

Since I detail the four items, my clients negotiate the materials, no longer my time.

Summary

• Labor: actual hours × all-inclusive rate
• Materials: this month's price + 5 to 10% loss
• Overheads: 15 to 25% depending on your structure
• Margin: what you have left to invest and deal with contingencies

Once the method is in place, writing becomes mechanical. See also how to follow up on a quote without calling.