Guide

How to price a job.Materials, markup, labour, overheads, profit.

Updated 13 October 2026 · 6 minute read

Short answer

To price a job, add the cost of materials with your markup, your labour at a day or hourly rate that covers your wages and overheads, any plant hire, skips and subcontractors, and a profit margin. Add VAT if you are registered. Price from your own rates every time, not from memory, so every quote is consistent.

The five parts of a price

Materials: what you will buy, at your trade price.
Markup on materials: covers ordering, collecting, waste and the risk of things going wrong.
Labour: days or hours on site, at a rate that covers your wages and your overheads.
Other costs: plant hire, skips, scaffolding, subcontractors, parking and travel.
Profit: what the business keeps after everything is paid. Price it in, do not hope for it.

Working out your day rate

Add up a year of business overheads: van, fuel, insurance, tools, phone, software, accountant. Add what you want to pay yourself. Divide by the number of days you realistically work in a year, after holidays, bad weather, quoting and admin. That is the minimum day rate you need before profit.

A worked example

Materials at trade price: £1,200
Markup at 25%: £300
Labour, 3 days at £260: £780
Skip: £280
Subtotal: £2,560
VAT at 20% if registered: £512
Total to the customer: £3,072

Common pricing mistakes

Pricing from memory, so the same job is priced differently each time
Forgetting the time spent quoting, travelling and collecting materials
Underestimating the days, then working the extra for free
Leaving VAT off when you are registered, and having to explain it later

Price faster with your own price book

Upheld keeps your price list, markup and day rate in one place. When you talk a job through, it matches each item to your prices and applies your markup, and flags anything it cannot find so you never guess. Every quote is priced the same way.

Common questions

What markup should a tradesman put on materials?

There is no single rule. Many trades add between 10% and 30% to cover ordering, collection, waste and risk. Set it to match your costs and your market.

Should I quote by the day or by the job?

Customers usually prefer a price for the job. Work it out from your day rate, then show it as a fixed price with the work itemised.

Do I need to charge VAT?

Only if you are VAT registered. You must register once your taxable turnover goes over £90,000. If you are not registered, do not add VAT.

Sources

General information, not legal or tax advice. Check the source for your situation.