Pricing is one of the most talked-about topics among UK tradespeople — and one of the most misunderstood. In this week’s episode of the Trade Legends Podcast, Sam from Oval Renewables joined us alongside Adam from Nerrad Tools and Mark from Apprentice 1-2-1 for a frank conversation about the realities of running a trades business and why so many tradespeople are simply not charging enough.
Why Most Tradespeople Underprice Their Work
Sam made a point that will resonate with tradespeople across every sector — most small trades businesses have never properly calculated what it actually costs to run their business. Without knowing that baseline figure, pricing becomes guesswork. And when you base your prices on what everyone else is charging, you risk copying the wrong formula and embedding the same mistake into your own business.
The advice from the group was simple but powerful — sit down one evening and go through your business bank statements. Add up every single cost your business carries. The result is often eye-opening, and for many tradespeople, it reveals that their labour rate needs to significantly increase just to cover basic overheads.
The Danger of Racing to the Bottom
The episode highlighted a problem familiar to anyone in the renewables or construction sector — customers receiving quotes that vary wildly in price. Sam described instances where competitors had priced jobs at little more than the cost of the equipment itself, with no realistic allowance for labour, overheads or profit.
The message was clear — if you are always the cheapest, your business will not survive. The tradespeople who build sustainable businesses compete on quality, expertise and service rather than price alone.
How to Start Pricing Correctly
The panel’s advice for any tradesperson struggling with pricing:
- Calculate your true business costs — every overhead, every expense
- Work out what your labour rate actually needs to be to cover those costs and make a profit
- Stop using competitors’ pricing as your benchmark
- Be confident in charging what your skills and quality are worth
- Communicate your value clearly to customers
Managing the financial side of a trades business is easier with the right tools. Check out our exclusive discount on Powered Now — the job management app built specifically for tradespeople that helps with quoting, invoicing and keeping on top of your business finances.