Introduction: The Pricing Problem Most Contractors Don't Talk About
Ask ten contractors how they price their work, and you'll get ten different answers.
Some charge:
- "What the last guy charged"
- "Whatever the customer seems willing to pay"
- "Just enough to win the job"
- "A little more than materials"
This is exactly why so many skilled contractors feel overworked, underpaid, and stuck.
Underselling isn't a pricing issue, it's a system issue.
If you don't understand your real costs, your value, and your market, you'll always feel pressure to lower your price just to stay busy.
This guide will show you how to:
- Set contractor rates with confidence
- Cover all your costs (not just materials)
- Stop racing to the bottom on price
- Attract better clients who respect your work
1. Why Most Contractors Undersell Themselves
Let's be honest, contractors don't underprice because they want to.
They underprice because of:
- Fear of losing the job
- Inconsistent work
- Platform bidding wars
- Poor cost visibility
- Pressure from cheaper competitors
Many contractors think:
"If I charge more, I'll lose work."
In reality:
If you charge too little, you attract the worst work.
Low prices often mean:
- More negotiation
- More scope creep
- Less respect
- More stress
- Less profit
Underselling is not survival, it's slow burnout.
Most contractors only think about:
- Fuel
