service business pricing

How to price a job without guessing

The fastest way to underprice work is to start with the customer price and work backward emotionally. Start with the job's real cost, choose the margin your business needs, then calculate the minimum selling price that protects it.

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No market-rate guessing. Use your own job economics.
Inputs

Price the job you actually have.

The useful question is not “what does everyone charge?” It is “what does this job cost my business, and what price protects the margin I chose?”

Cost and scope inputs that matter

  • Define exactly what is included in the scope
  • Estimate labor hours honestly
  • Use the business cost of labor, not just hourly wage
  • Add direct job costs
  • Apply your target gross margin to the selling price
Core margin formula
Protected price = cost basis ÷ (1 − target margin)

This is the simple gross-margin relationship behind a cost-based protected price. Your real model may also need tax, payment fees, overhead allocation, contingency or other inputs you choose to include.

Entered job cost$850
Target margin35%
Protected price$1,308

At $850 of entered job cost and a 35% target margin, the protected selling price is about $1,308. That leaves 35% of the selling price after those entered costs.

Common ways margin leaks

  • Quoting before the scope is clear
  • Using a flat markup on every job
  • Ignoring owner labor
  • Treating revenue as profit
MarginPact workflow

From messy job notes to a quote.

Paste the real job. MarginPact extracts the scope facts it can support, asks you for the economics it cannot know, calculates a protected recommendation from your inputs, and lets you carry the same job into your workspace to create a customer quote.

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Questions

Pricing FAQ

Should I price from cost or from the going rate?

Your cost basis should establish the minimum sustainable price. Market conditions can influence the final quote, but they should not erase your economics.

What counts as loaded labor cost?

Loaded labor can include wages or owner labor value plus payroll burden, benefits and other labor costs you choose to include.

Can I save the price after I calculate it?

Yes. MarginPact's Free Price Check can carry the job and economics into a MarginPact workspace, where you can create a customer-ready quote.

Price one real job now.

Use the same Free Price Check that feeds MarginPact's protected pricing and quote workflow.

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More pricing guides