Fergus Admin
Pricing jobs accurately is one of the biggest challenges tradespeople face. Set your price too low, and you risk barely breaking even. Go too high, and you might scare off potential customers. For electricians and plumbers, striking the right balance can mean the difference between a profitable business and one that's constantly chasing its tail. This guide is here to help you fine-tune your pricing strategy and maximise your profits while maintaining happy customers.
Why Accurate Pricing Matters
Pricing isn’t just about covering your costs – it’s about ensuring you’re making a healthy profit on every job. For tradespeople, this means factoring in three key elements:
1. Labour Costs: How much time will the job take, and what’s your hourly rate?
2. Material Costs: What will the materials cost, and how much should you mark them up?
3. Overheads: What are your running costs, from van maintenance to insurance and tools?
Underestimate any of these, and you risk eating into your profit margins. Overestimate, and you might lose the job to a competitor. Striking the right balance is crucial.
How Fergus Helps You Price Jobs Accurately
Fergus is a game-changer when it comes to pricing jobs. It’s not just a job management tool – it’s a profit-maximising machine. Here’s how it works:
1. Pricebook Integration for Accurate Material Costs
One of the biggest headaches for tradespeople is keeping track of material costs. Prices fluctuate, and if you’re using outdated figures, your quotes could be way off. Fergus solves this problem with its pricebook integration feature. You can upload pricebooks from your suppliers directly into the system, ensuring you always have the most up-to-date prices.
“Being able to upload pricebooks means we can accurately price up jobs and manage our margins on top. That’s brilliant for us.” - Baltic Electric
2. Material Markup Function for Clear Profit Margins
Once you’ve got your material costs sorted, the next step is marking them up to ensure you’re making a profit. Fergus’s quote creator includes a material markup function, which lets you set your desired margin and see exactly how much profit you’ll make on each job.
This feature is a game-changer because it takes the guesswork out of pricing. You can adjust your markup percentage based on the job, the client, or your business goals, and Fergus will automatically calculate the final price.
“The beauty of Fergus is that before a job even starts, we know how much money we’re going to make on it – it puts us in a position where we always win.” - Allied Plumbing and Heating
3. Streamlined Quoting Process
Fergus doesn’t just help you price jobs accurately – it also makes the quoting process faster and more professional. You can create detailed, branded quotes in minutes, complete with itemised costs and clear breakdowns. This not only impresses clients but also reduces the risk of disputes down the line.
Factoring in Labour Costs
While materials are a big part of the equation, labour is where many tradespeople struggle to price correctly. Here’s a simple formula to calculate your labour costs:
1. Determine Your Hourly Rate: Start by calculating how much you need to earn per hour to cover your overheads and make a profit.
2. Estimate the Job Duration: Be realistic about how long the job will take, and factor in potential delays.
3. Multiply the Two: Your hourly rate x estimated hours = labour cost.
Fergus makes this process easier by allowing you to set default hourly rates for different types of work. You can also track time spent on jobs in real-time, so you know if you’re on track to hit your profit targets.
UK Tax Changes for Employee National Insurance in 2025
The UK government has announced changes to employee National Insurance contributions (NICs) for the 2025 financial year. While the exact details are still being finalised, it’s likely that these changes will impact your overall profits, especially if you have employees.
Here’s what you need to know:
Increased NICs: The government is planning to increase NICs for employees, which could mean higher payroll costs for your business.
Impact on Take-Home Pay: If your employees’ take-home pay decreases, they may expect a pay rise to compensate. This could put additional pressure on your margins.
How to Prepare:
1. Review Your Pricing: If your labour costs are going up, you may need to adjust your pricing to maintain your profit margins. Use Fergus to model different scenarios and see how changes to your hourly rate or markup will impact your bottom line.
2. Communicate with Your Team: Be transparent with your employees about the changes and how they might affect their pay. This can help avoid any surprises and maintain morale.
3. Plan Ahead: Start factoring these changes into your financial forecasts now, so you’re not caught off guard when they come into effect.
Tips for Maximising Profit on Every Job
1. Don’t Undervalue Your Time: Your skills are valuable, so don’t be afraid to charge what you’re worth.
2. Track Your Costs: Use tools like Fergus to keep track of material and labour costs in real-time.
3. Review Your Margins Regularly: Markets change, and so should your pricing. Regularly review your margins to ensure you’re staying competitive while maximising profit.
4. Upsell Where Possible: If you’re on a job and spot an opportunity to offer additional services, don’t hesitate to suggest it to the client.
Pricing jobs accurately is both an art and a science. It requires a deep understanding of your costs, your market, and your clients. But with the right tools and strategies, you can ensure every job is profitable. Fergus takes the stress out of pricing by giving you accurate material costs, clear profit margins, and a streamlined quoting process.
So, whether you’re an electrician, plumber, or running a multi-trade business, start using Fergus today and take the guesswork out of pricing. Your bottom line will thank you.
