A bad quote costs you twice. Underprice a job and you're working for free while your own bills pile up. Overprice it and the client walks. You've wasted time scoping, measuring, thinking through the job - and you've got nothing to show for it.
The real problem is most tradies quote off the top of their head - a number that feels about right, or whatever the last job was, or whatever the client hints they want to pay. That's not a quote. That's a guess. And guesses don't cover your costs.
This guide walks you through the actual process: knowing what your time costs, understanding what to include in a quote, how to structure it so clients see value instead of just a bill, and how to protect yourself from scope creep that eats your profit.
1. Know Your Costs Before You Quote
Before you quote a single job, you need to know what it costs you to exist as a business. Not a rough idea. Real numbers. This is where most tradies get it wrong.
Materials:
Don't guess. Measure properly, or ask the client to show you exactly what they want. If it's a bathroom tap replacement, go to Bunnings, find the actual tap, and know the actual cost before you put a number on paper.
Always add a 10–15% waste factor on top of your materials cost. Clips, adhesive, tape, fittings you messed up, bits you left at the last job — it all adds up. If you don't build waste into the quote, you absorb it.
For jobs where you can't nail down exact materials yet, use past jobs as a guide. "My last 10 bathroom renos averaged $150 in fittings" is a better starting point than a guess.
Labour:
Work out your base hourly rate. What do you actually need to earn to cover living expenses, tax, superannuation, and a buffer for quiet months? If you need $65k/year before tax to keep the lights on, that works out to roughly $40/hour just to not go broke.
That's your floor — not your rate. On top of that you need to add your business overheads (see below) and your profit margin. Your actual hourly rate should be well above the floor.
Travel and call-out:
Fuel is the obvious cost, but it's not the real one. A 30km round trip might only be $4.50 in petrol, but you're also sitting in traffic, wearing out your vehicle, and burning time you could be billing.
Most tradies charge a call-out or site visit fee of $80–150 depending on trade and location. This is standard practice and covers your travel time. For after-hours or emergency work, 1.5–2x the standard rate is normal.
For jobs well outside your usual area, add more. If someone's 45 minutes away, that's 90 minutes of your day gone just on travel — price accordingly or let it go to someone closer.
Overheads:
- Van/ute repayments or lease
- Insurance (public liability, tools, vehicle, income protection)
- Fuel and maintenance
- Phone and internet
- Tools and equipment replacement (tools wear out, get lost, break)
- Software, invoicing, accounting
- ABN registration, business name, licensing fees
- GST (if registered, you collect it but must pay it out)
- Superannuation (you need to pay your own)
Add it all up. You might have $25k/year in overheads. If you work 1,500 billable hours/year, that's $16.70/hour in overhead. So now your base cost is $40 (living) + $17 (overhead) = $57/hour just to break even.
Markup vs margin — know the difference:
These two get mixed up constantly. They're both about profit, but the maths is different.
- Markup is a percentage added on top of your cost
- Margin is the profit as a percentage of the selling price
The formulas:
- Markup formula: Price = Cost × (1 + markup%). Example: $100 cost at 25% markup = $100 × 1.25 = $125 price
- Margin formula: Margin% = Profit ÷ Price. Example: $125 price – $100 cost = $25 profit. $25 ÷ $125 = 20% margin
Notice: 25% markup only gives you 20% margin. They're not the same number. Here's a quick conversion:
- 20% markup = 16.7% margin
- 25% markup = 20% margin
- 33% markup = 25% margin
- 50% markup = 33% margin
Most tradies think in markup (easier to calculate on the fly). Accountants think in margin. Both are valid — just make sure you know which one you're using.
VerbalIt tip: VerbalIt uses markup when calculating your quotes. So if you want a 20% margin on your jobs, set your markup to 25% in your profile settings. If you want a 25% margin, set markup to 33%.
Putting it all together:
Your quote = (Materials + Labour Hours × Hourly Rate + Call-Out) × (1 + your markup%). Add your overheads into your hourly rate or as a separate line — either way, make sure they're covered.
2. The Anatomy of a Good Quote
A professional quote isn't just a number. It's a contract. It sets expectations, protects you from scope creep, and looks like you know what you're doing (which, by the time you send it, you should).
What MUST be on a quote:
- Your details: Name, business name (if you have one), ABN, phone, email
- Quote date: When you prepared it (not just the date you send it)
- Quote number: Unique reference (QT-001, QT-002, etc.) so you can track it
- Client details: Name, address, phone. Their ABN if they're a business
- Scope of work: What you're quoting for. Be specific. Not "bathroom reno" but "Supply and install: new shower screen, new tap, grout floor tiles, seal grout, repaint feature wall"
- Line items: Break the work into logical services the client understands
- Subtotal: Sum of all line items
- GST (if registered): 10% of subtotal, shown separately
- Total: What they actually pay
- Terms: When payment is due (e.g., "Due on completion" or "50% upfront, 50% on completion")
- Validity: How long the quote is valid for (e.g., "Valid for 14 days")
- What's NOT included: This is important. "Excludes: Structural repairs, roof access, temporary fencing, removal of asbestos"
Professional vs dodgy:
A dodgy quote is hand-written on the back of a receipt with no ABN, no terms, just a number and your phone. A professional quote is a clean document with your logo, scope, clear pricing, and payment terms. It takes 5 minutes to prepare and makes you look legit. The dodgy version makes clients nervous.
Scope clarity prevents scope creep:
Be very specific about what's included — "Tile floor with adhesive and grout" is better than "labour". Be equally clear about what's NOT included. If they want extra, issue a variation. If something's unclear during the site visit, ask and document the answer on the quote. For example: "Client to provide existing tap for reuse — if new tap required, a variation will be issued."
Line items — group by service, not by part:
- Bad: Tap $120, washers $5, thread seal $3, labour $150, labour $100
- Good: Supply and install new tap including fittings: $380
The second one is what clients understand. They pay for the service. You know what you're charging and why. No haggling over $5 washers.
3. Fixed Price vs Hourly vs Cost-Plus
Three ways to price a job. Each has trade-offs. Most solo tradies use a mix depending on the job.
Fixed price (most professional):
You quote a total price and that's what they pay (unless the scope changes). Clients know exactly what they're paying, you control your profit, and it's easy to compare offers. The downside: if you underestimate hours, you lose money and carry the risk. This works best for jobs where the scope is clear and you've done it before — like bathroom taps, fence panels, or standard kitchens. Not ideal for one-off custom work.
Pros:
- Client knows exactly what they're paying
- You control your profit
- Easy to compare offers
Cons:
- If you underestimate hours, you lose money
- You carry the risk
Hourly (simple but risky):
You charge per hour worked. The client knows your rate but not the total cost. It's easy to calculate and if the job runs longer, you still get paid — no underestimate risk. But clients hate not knowing the final price and they'll worry you're dragging it out. This makes it hard to compete on price. Best for service calls (diagnostics), repairs where you don't know what's wrong yet, or variation work.
Pros:
- Easy to calculate
- If the job runs longer, you still get paid
- No underestimate risk
Cons:
- Clients hate not knowing the final cost
- They'll worry you're dragging it out
- Hard to compete on price
Cost-plus (good for materials-heavy work):
You quote materials cost plus labour at your hourly rate, and the client sees both. The total can vary if you end up using more materials than estimated. It's transparent and flexible if the job changes, and clients can approve material choices. But it still leaves the final price open and requires trust. Works best for jobs where material costs are significant and variable — new kitchens, bathroom renos, landscaping.
Pros:
- Transparent
- Client can approve material choices
- Flexible if the job changes
Cons:
- Still leaves the final price open
- Requires trust
What small operators may actually do:
For the initial visit or diagnostics, you'll charge hourly or a call-out fee since you don't know what's wrong yet. Small jobs like a tap replacement, repair, or single service are usually fixed price because you've done it a hundred times. Medium jobs like a bathroom refresh or kitchen splashback work well as fixed price labour plus itemised materials. Big jobs like a full reno or major structural work call for cost-plus or time-and-materials pricing because there are too many variables.
Pro tip: If you're not sure, quote it as fixed labour (e.g., "$800 labour") + itemised materials (e.g., "Tiles $1,200, adhesive & grout $180, sealer $95"). This way the client can see the breakdown and you're not guessing on overall hours.
4. How to Price Without Undercutting Yourself
This is where your profit gets crushed. You see what others are charging, you get scared, you drop your price. Then you're broke and angry.
Research your local market:
Ask other tradies (seriously, most will tell you) what they charge for jobs like yours. Check Facebook groups and marketplace listings for your trade in your area. Ring a few competitors and ask for quotes — you're a customer. Use this to understand the range. In inner-city Sydney, a tap replacement might be $400–600. In regional towns, $250–350.
You're not competing on price — you're competing on value:
If you're the cheapest quote, the client will remember that you were cheap when something goes wrong. If you're the middle price and you do great work, the client trusts you and refers you. Clients who shop purely on price are problems — they'll blame you if costs rise, haggle over every $5, and demand endless variations. The right move is simple: quote fair, do brilliant work, and let the cheap clients go elsewhere while good clients stick with you.
Value your own time:
If your rate covers living expenses, overheads, and a profit margin, and the client says it's too much, ask yourself: "Am I okay making less than I need?" If the answer is no, don't take the job. Your time is finite. Every hour on a job paying below your rate is an hour you're not on a job that pays properly.
Account for unbillable time:
Not every hour of your day is chargeable to a job. Site visits, quotes, admin, accounting, invoicing, chasing payments, training, and downtime between jobs all eat into your time. If you're on-site 30 hours a week, you might only bill 25 of those hours. Your hourly rate needs to account for this. If you charge $120/hour billed but only bill 25 out of 40 hours, your real hourly rate is $75/hour.
The walk-away price:
Have a minimum job size or rate — "I won't quote anything under $150" or "My minimum is 2 hours labour". Small jobs are high-overhead (you still need to drive there, write an invoice, etc.) and often come with fussy clients. If someone wants a $50 job at your standard rate, quote higher to make it worth your time, or politely decline.
Real example: A client asks for a quote to replace a single light switch. Your rate is $120/hour. The job takes 15 minutes. If you quote 15 minutes of labour ($30), you've undercut yourself into the ground — you still had to drive there, write a quote, and invoice. Quote at least $75 (30 minutes minimum) or $150 (1 hour minimum). The client will either accept it or ask someone else. Either way, you've respected your own time.
5. Common Quoting Mistakes
These happen all the time and they kill your profit.
Forgetting to add GST:
If you're GST-registered, your quote should show the GST line with the client seeing subtotal plus 10% GST equals total. If you forget to mention it and quote "$1,000", they might think that's the final price, then you send an invoice for "$1,100" and they get angry.
- Always be clear: "Total $1,000 + $100 GST = $1,100 inc. GST" or just quote the inc. price if you prefer
No waste/overhead allowance in materials:
If a job needs 50 metres of cable and cable costs $2/metre, that's $100 in theory. But you're actually buying 55 metres to account for waste, connectors, testing offcuts, and future repairs. Quote $120 for cable. If you don't build in waste, you absorb the cost.
Verbal quotes with no paper trail:
"Yeah mate, $800" said over the phone becomes "You said $600" when the invoice arrives. Always send a written quote — even if it's just a text with your details and the price, it's better than nothing. If the client says "I'll get back to you" and then doesn't, at least you have proof you quoted them.
Scope creep without variation:
You quote "Replace tap, $380" and the client asks "Oh, while you're there, could you also reposition the sink and fix the under-cabinet leak?" If you do this without updating the quote, you're working for free. The right move is simple: "Sure, let me have a look at those. I'll send you a variation quote for the extra work." This protects you and the client because they know what the extra costs.
Not following up on quotes:
You send a quote, the client goes quiet, you move on. Three weeks later they call asking if the $1,200 quote is still valid. Your quote said "Valid for 14 days" so it expired and you have to requote. Better approach: follow up after 3-5 days with "Hi, did you get the quote? Any questions?" Most jobs that go quiet don't come back, so cut losses faster and move to the next lead.
Not being clear on payment terms:
You quote $2,000 for a 3-day job with no mention of when payment is due. You finish, send an invoice, and the client says "I'll pay you next month." Be specific upfront: "Deposits: 50% upfront, balance due on completion" or "Payment due within 7 days of invoice".
6. Sending the Quote
How and when you send it matters. A lazy quote says "I don't care if you hire me".
Email (best for professional jobs):
Send a PDF attached or as a formatted email. Keep it clean — one page if possible and readable on mobile. Include a short intro like "Hi Sarah, as discussed, here's the quote for your bathroom tap replacement. Valid for 14 days. Let me know if you have questions." Sign it with your name, business name, and phone.
Text (okay for small jobs):
"Hi, as discussed — replacement tap supply and install, $380 inc GST, payment on completion. Text or call if you want to go ahead. Valid 14 days". It's simple, quick, and works for under $500 jobs. But follow up with an email or PDF for your records.
Paper (old school but effective):
Hand them a printed quote when you're on-site or at their door. It feels official and they're more likely to stick it on the fridge. But also email it so they have a digital copy.
Follow-up timing:
Send it the same day or next day while they're still thinking about the job. If they don't respond in 3-5 days, send a friendly check-in: "Just checking — did you have any questions about the quote?" If still nothing after another 5 days, assume it's not happening and move on, unless it's a big job worth chasing.
Tone:
Professional but not stiff — you're a tradie, not a corporate. Say "Hi, as we discussed..." to be friendly and clear. Don't say "Please find enclosed herewith a quotation for services rendered..." — nobody talks like that.
Validity period:
Always state it — "Valid for 14 days" gives them urgency without being pushy. For small jobs use 7 days, for bigger jobs 14–30 days, and for jobs with material lead times 30 days. After the validity period, you can requote, especially if material prices have changed.
7. What Happens After They Say Yes
The quote becomes a contract the moment they agree. Protect yourself and the client with clear steps after acceptance.
Deposits (for jobs over ~$500):
- Take a 30–50% deposit upfront. It covers your materials and shows the client is serious
- For a $1,000 job, ask for $500 upfront
You can do this via bank transfer, BPAY, PayID, or cash. Send them an invoice marked "DEPOSIT" for the deposit amount, and a final invoice for the balance due on completion.
What if the scope changes?:
Mid-job, the client might say "While you're here, could you also..." for anything outside the original scope. STOP. Take a photo or note of the extra work, estimate the time and cost, and send a written variation quote. Get their approval in writing — email, text, whatever — before doing it.
- Example: "Original quote: $380. Variation: Install new drain connector and repair existing tiles, $120. New total: $500"
- This protects both of you. The client knows the extra cost. You get paid for extra work
Invoice vs quote — when they become different:
- Quote = what you'll charge. Issued before the work
- Invoice = what you actually charge. Issued after the work (or on completion)
- They're usually the same, but variations mean the invoice is different from the quote
- Example: Quote $1,000, variation $150, invoice $1,150
Getting paid on time:
- For small jobs: Cash on the spot or payment before you leave
- For bigger jobs: Invoice them and specify "Due within 7 days" or "Due on completion"
Include your payment details (bank account or PayID) on the invoice. If they haven't paid by day 7, text or email a polite reminder: "Hi, just checking — did you receive the invoice? Payment is due this week". For overdue invoices, follow up again at 14 days. Consider a late payment fee (legal in Australia) of 5–10% after 30 days.
Final documentation:
Take photos of the finished work for your portfolio and proof it was done. Keep the invoice, receipt for materials, and any photos you took during the job. If the client signed off or approved the work, keep that too. This is your record that the job is done and paid — useful if there's a dispute later.
VerbalIt tip: If you're doing a lot of quoting and invoicing, tools like VerbalIt turn a voice memo into a quote in seconds. You say "tap replacement, supply and install, new fittings included, labour 2 hours at my rate, customer said they want it done this week" and it builds a professional quote automatically. Saves time and keeps your quoting consistent.