Pricing models
At a glance
- For
- Businesses whose price list is years old, or who price each job from memory
- Takes
- Two to three weeks
- Format
- Cost review, model build and a handover with whoever quotes
- You get
- A pricing model in a spreadsheet you own
- Price
- Priced on assessment
- Labour, materials, travel and overhead turned into a real cost per hour
- Margin worked out correctly, not confused with markup
- Minimum fees and day rates set from cost, not habit
What we hear from owners
- “The price list has not been rebuilt in years.”
- “Busy all year, and the bank account never grows.”
- “Small jobs and callouts feel like they fill the week but leave nothing over.”
- “Two people would price the same job differently.”
Why a pricing model beats a rule of thumb
Costs move and the rule of thumb does not. A pricing model starts from what an hour of productive work really costs, adds materials and travel, then puts your margin on top.
What the pricing model work includes
- 01
Your real cost baseWages, on-costs, vehicles and fixed costs in one picture.
- 02
Cost per productive hourLabour and overhead for every hour that reaches a job.
- 03
A costing model per type of workMaterials, hours, travel and overhead, margin on top.
- 04
Minimum fees and day ratesWorked out from cost, so small jobs stop losing money.
- 05
Quote-ready outputsPrices that drop into your quotes, VAT handled.
- 06
A handoverWhoever quotes runs the model on real work.
What you get
Price build-up · bathroom refit
Sample
| Materials | R18,600 |
| Labour, with on-costs | R14,200 |
| Travel | R1,400 |
| Overhead recovery | R6,300 |
| Margin | R10,125 |
| Price, excluding VAT | R50,625 |
- Margin
- 20.0%
- Markup
- 25.0%
- Old price margin
- 8.0%
How the pricing model work runs
- 01
Gather costs
Recent quotes, wages and twelve months of fixed costs.
- 02
Build the cost base
A cost per productive hour for the business.
- 03
Model the work
Each type of work costed, your margin on top.
- 04
Hand over
Run on real jobs, with a routine for updating it.
Who this is for
- Contractors whose price list is years old
- Owners who price from memory or a percentage
- Businesses that are busy but not making money
- Teams where different people quote differently
- Businesses that added vehicles, staff or premises
What you have at the end
- A pricing model in a spreadsheet you own
- Your cost per productive hour
- Your overhead recovery rate, workings shown
- Minimum callout fee and day rate from cost
- Current prices compared against cost
Templates that help
Read more
- Markup is not margin, and the difference is costing youPricing · 4 min read
- How to work out your overhead recovery ratePricing · 6 min read
- Why small callouts lose money, and how to set a minimum feePricing · 5 min read
- Pricing for profit, not just to win jobsPricing · 6 min read
- VAT registration for contractors: the 2026 threshold changeCompliance · 6 min read
Frequently asked
Something else on your mind? A discovery call covers the detail.
Talk to Connie about pricing models
Leave your details and a line about the business. You get a reply to book a discovery call, then a fixed quote and written scope before anything starts.
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