Pricing Mistakes That Cost You Thousands

Pricing Mistakes That Cost You Thousands

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For tradespeople who want to run smoother, more professional businesses without losing their sanity.

Are you charging enough? If you’ve ever finished a job, looked at your bank balance, and wondered where the money went — this post is for you.

Most pricing problems don’t come from lack of work or effort. They come from underestimating, forgetting costs, or feeling awkward about raising your rates. I’ve made all of these mistakes — and fixing them helped turn BlueWood from “just about surviving” to a real, growing business.

🧾 The 5 Most Common Pricing Mistakes

1. Guessing instead of calculating – Estimating based on what “feels fair” instead of checking materials, hours, and overheads
2. Forgetting your time – Not charging for travel, prep, admin, or clean-up
3. Not building in profit – Charging just enough to cover costs, but not enough to grow
4. Discounting without thinking – Offering a deal because a client asked nicely or looked shocked at the price
5. Charging based on what others charge – But they might be undercharging too!

📐 How I Price Jobs at BlueWood

Here’s the basic formula I now follow (and revisit regularly):

• Materials: I price them from current supplier rates or invoices
• Labour Time: I calculate hours including travel, setup, and finish
• Hourly Rate: Set based on experience, overheads, and what I need to live on
• Profit Margin: I build in a cushion — I’m not just paying myself a wage

And if it’s a new type of job or a client I don’t know? I add contingency.

📊 Use Tools to Help You Price Smarter

Pricing doesn’t need to be scribbled on the back of an envelope. Here’s what helps me:

• Zoho Books – for estimate templates, deposits, and tracking what was accepted
• Google Sheets – for building price calculators or materials lists
• Zoho CRM – to track estimate stages and follow-up reminders

BlueWood Tip: If you’re not confident in your pricing, clients can tell. A clear estimate and firm process makes you look professional — and worth it.

Related: Bookkeeping Basics for Tradespeople | Requesting Deposits Without Losing Clients

Ready to Improve Your Business?

At BlueWood Office, we help tradespeople like you get systems in place so you can focus on the work you enjoy (and stop chasing paperwork).

📅 Book a Free Discovery Call

Prefer video? Check out our YouTube series covering these tips step by step:

▶️ Watch on YouTube: BlueWood Office Channel

This post is part of our weekly series for tradespeople who want to build smarter businesses. New post every week — check back soon or follow us for updates.

Got questions or thoughts? Leave a comment below — I’d love to hear how you price jobs or what challenges you’ve had with estimates!