JOB PRICING GUIDE
How do I price a job with both materials and labor?
Short answer: estimate direct materials and other direct costs, estimate productive labor time, then make sure the total selling price produces enough contribution to cover overhead, owner compensation and profit.
Estimate direct job costs first
Use current expected costs for materials, subcontractors, permits, rentals, disposal and job-specific delivery.
Estimate productive labor time
Use realistic labor hours, including setup and jobsite time that the work actually requires. Historical job data is usually more reliable than memory alone.
Do not rely on material markup to carry the entire job
A healthy markup on materials can still leave the job underpriced if labor takes too long or overhead recovery is too low.
Expected job contribution = selling price − direct job costs
Contribution per productive hour = expected job contribution ÷ productive job hours
Test the whole job
Compare contribution per productive hour with the target your business needs. This lets you use one consistent profitability test even when customer-facing prices are presented as flat-rate totals.
Use your own numbers
JJL Business Tools turns these ideas into practical targets using your actual costs, time and income goals.
Check the job with Quote Guard