Providing a potential new customer with a quote for their services can be a tricky balancing act for general contractors and skilled trades professionals.
On one hand, you want to win the job versus your competition. On the other hand, your pricing strategy needs to account for your business’s overhead and contractor insurance, taxes, and profit margin.
A customer quote is also an opportunity to set expectations and ensure the project goes smoothly and meets the customer’s satisfaction. However, pricing a job too low to beat a competitor won’t cover your costs, while pricing too high risks the customer going with another contractor.
This guide provides a general overview of what contractors should consider when pricing a job. Its goal is to help you strike the right balance between competitiveness and profitability and achieve sustainable growth.