How to set your first prices: a 5-step guide

Step 1Add up what one job costs you

Write down everything you spend in a normal month: fuel, insurance, phone, kit, software and repairs. Divide it by the number of jobs you expect to do. That is what a job costs before you have paid yourself.

Then add your time. Count the whole job, door to door, including travel, quoting and chasing payments.

• Monthly costs ÷ jobs a month = cost of one job
• Hours for one job, door to door
• What you want to earn for each hour

Step 2Check what owners like you charge

The earnings guides on HumDays show what businesses in your trade take in a month, from verified sales. Many owner pages also say what they charge now and what they started at.

Look at three or four owners in places like yours. A city price rarely works in a village, and the other way round.

Step 3Pick a price per hour, not per job

A job that takes twice as long must cost twice as much. Owners who price per house or per car lose money on the big jobs and win only the small ones.

Pick the hourly figure you need, then turn it into a price for each kind of job.

Step 4Offer a regular plan

A customer who books every four weeks is worth far more than one who books once. Plans make your diary steady and are easier to sell than one-off jobs.

Give regular customers a small discount and take payment by direct debit or a card on file, so nobody has to chase anybody.

Step 5Test it, then raise it

If almost everyone says yes straight away, your price is too low. A few people saying no is a good sign.

When you raise prices, start with new customers. Write to existing customers a month ahead and say what they get.