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How to Price Your Services as a Contractor

Copying a competitor’s price is how small contractors end up busy and broke. Here is a simple way to build prices from your own numbers.

Updated October 27, 2026 · Written for small contractors and trade crews

1. Know your hourly cost

Add up a month of business costs — truck, fuel, insurance, tools, phone, software, your own pay — and divide by the hours you actually bill in a month (not the hours you work). That is what an hour costs you before any profit.

2. Add materials with a markup

Materials cost you time to buy, pick up and warranty. Most contractors add a markup to cover that.

3. Add profit

Profit is not your pay — it is what keeps the business alive in slow months and pays for growth.

4. Per hour or per job?

Per-job (flat) pricing is easier for the customer and rewards you for working fast. Hourly works when the scope is unclear. Many contractors flat-price common jobs and bill hourly for troubleshooting.

5. Write it down once

Turn the result into a price list for the work you do most, so every estimate is consistent. In Selk that list is your price book.

Questions

Should I just charge what others charge?

Use local prices as a sanity check, but build your price from your own costs. Your truck, insurance and hours are not the same as someone else’s.

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