How to research day rates and project pricing

Start by researching what at least three local competitors charge for similar work. This will give you a benchmark for the market rate, helping you decide whether to charge by the day, by the hour, or a fixed price per project. Your goal is to find the sweet spot where your price is competitive enough to win work but high enough to cover all your costs and make a healthy profit.

Why this is a crucial step

Pricing is one of the most important decisions you'll make. Price too high, and you’ll struggle to win jobs against more established tradespeople. Price too low, and you might be busy, but you'll work hard for very little profit, risk running out of cash, and potentially give clients the impression that your work is low quality. Good research helps you price with confidence from day one.

How to research your local market

Finding out what other tradespeople charge can feel tricky, but there are several straightforward ways to get a good idea:

1. Check online trade directories: Look up local competitors on platforms like Checkatrade, MyBuilder, or Rated People. While they might not list prices publicly, you can see how they present themselves, their level of experience, and the types of jobs they do. This context helps you understand where you fit in the market.
2. Become a 'mystery shopper': The most direct way to find out prices is to ask for them. Put together a request for a quote on a small, well-defined job (e.g., "supply and fit an outdoor tap") and send it to a few local competitors. This gives you a real-world example of how they structure their quotes and what they charge.
3. Talk to your network: If you know other people in the trades, ask them for advice. A plasterer and an electrician aren't direct competitors, so they are often happy to share insights on what the going day rates are in your area.
4. Ask at the trade counter: Staff at your local builders' or plumbers' merchants talk to hundreds of tradespeople every week. They have a great sense of the local market and might be able to give you a general idea of typical day rates.

Choosing your pricing model

Once you have an idea of the market rate, you need to decide how you will charge your clients. In construction, there are three common approaches:

• Day or Hourly Rate: This is simple for both you and the client to understand. It's best for smaller jobs or work where the scope isn't entirely clear at the start. Just be sure to agree on how many hours are in your 'day'.
• Fixed Price (Per Project): This involves giving the client a single price for the entire job. It's attractive to customers because it gives them certainty. However, it requires you to be very accurate in estimating your time and material costs. If you get it wrong, you could lose money, but if you're efficient, you can increase your profit margin.

Top Tip: Many tradespeople use a hybrid approach. You might have a standard day rate for small repair jobs but provide a fixed price quote for larger projects like a bathroom installation or an extension.

Putting it all together

Your research gives you a benchmark, not a rulebook. The final price you set should also factor in your own business costs, your level of experience, and the quality of your work. Don't be afraid to charge more than the competition if you offer a better, more reliable, or more skilled service. Your price is a reflection of your value.