Step 1: What does the job actually cost you?
Add up everything the job will cost, not just the obvious bits:
- Materials — what you'll buy for the job.
- Your labour — your hours at your real charge-out rate, not your old wage. This is the line tradies most often underestimate.
- Subbies and hire — anyone you bring in, plus machinery or equipment hire.
- The bits people forget — tip fees, consumables, travel, parking.
A small bathroom re-tile, built up honestly, looks like this:
| Cost line | Amount |
|---|---|
| Materials — tiles, adhesive, grout, waterproofing | $900 |
| Your labour — 14 hours at $95/hr | $1,330 |
| Hire and tip fees | $90 |
| Travel, parking, consumables | $80 |
| True cost | $2,400 |
Step 2: Is that a markup or a margin?
They are not the same number and the difference is real money. Take the $2,400 job above. Add a 25% markup and you charge $3,000 — but your profit is $600, which is a 20% margin. Price for a 25% margin and you charge $3,200, because you divide by 0.75 instead of multiplying by 1.25. Same job, $200 apart. Markup multiplies; margin divides. The quote & markup calculator does it for you: enter your cost and the margin you want, and it returns the price.
Step 3: How do you itemise so the price makes sense?
A single big number invites "that seems a lot". Break the job into clear line items and spell out the parts customers never see — prep, waterproofing, removal, compliance. That shows them what they're paying for, makes the price defensible, and makes it easy for them to add or drop scope instead of walking away.
Step 4: What terms should the quote include?
- How long the quote's valid — 30 days is common, and it protects you against material price rises.
- Deposit on bigger jobs, so you're not funding materials out of your own pocket.
- GST shown if you're registered — the $3,200 above becomes $3,520 inc GST.
- What's included and excluded, so there's no argument later.
Step 5: How fast should you send it?
Same day, and this is the step most tradies get wrong. The job often goes to whoever quotes first, not cheapest. Quote on site, or the same evening while you're fresh in their mind. Then if you don't hear back in a few days, follow up once — a single follow-up catches quotes that would otherwise sit unanswered forever.
What's worth checking before you hit send?
- Is your labour at your charge-out rate, not your old wage? This is the most common way a quote quietly loses money.
- Did you divide for margin, or multiply for markup? On the $2,400 job above that slip costs $200. Across ten jobs a year it's $2,000.
- Is the quoting time itself in there? The site visit, the drive and the hour working up the price are real time, and they have to be covered by the jobs you win.
- Does it have an expiry date? An open-ended quote is a price you've promised forever, through every supplier increase.
- Is GST shown if you're registered? Quoting ex GST and invoicing inc GST is how arguments start.
FAQ
How do I quote a job so I actually make money?
Count your real costs — your labour at your true charge-out rate, plus the overheads people forget — then price for your target margin by dividing, not by adding a markup. Underpricing almost always comes from undercounting cost, especially your own time.
What should a tradie's quote include?
Your business name and ABN, the customer's details, a dated quote number, the itemised scope with what's included and excluded, the price with GST shown if you're registered, any deposit, and an expiry date. Anything missing from that list is something you'll be asked about later.
Should I quote a fixed price or by the hour?
Customers usually prefer a fixed price for the certainty, but you still need your real hourly rate to build that fixed price properly. Work out your rate, then price the job from it.
How fast should I send a quote?
As fast as you reasonably can — same day is ideal. Jobs often go to the first decent quote, not the cheapest, so speed is a genuine competitive edge.
Related
How much should a tradie charge per hour? · Should you charge a call-out fee?
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General information for Australian businesses, not financial advice.