How to Price Any Field Service Job (Without Guessing)

The Real Cost of Your Time (It's Higher Than You Think)

Before you can price jobs, you need to know what your time actually costs. Most contractors think, "I want to make $50 an hour, so I'll charge $50 an hour." That's how you go broke.

Calculate Your True Hourly Rate

Step 1: Figure out your annual overhead
- Truck payment and maintenance: $8,000
- Insurance: $4,000
- Tools and equipment: $3,000
- Gas and vehicle costs: $6,000
- Phone, apps, basic software: $1,200
- Marketing and advertising: $2,000
- Total overhead: $24,200

Step 2: Determine billable hours
You work 50 weeks a year, 5 days a week. That's 250 days.
But you're not billing every hour:
- Drive time between jobs: 2 hours/day
- Estimates and follow-ups: 1 hour/day
- Admin work: 1 hour/day
- Breaks and lunch: 1 hour/day

Actual billable hours per day: 3 hours
Annual billable hours: 750 hours (250 days × 3 hours)

Step 3: Add your desired salary
Want to take home $60,000? Your business needs to generate:
- Your salary: $60,000
- Overhead costs: $24,200
- Total needed: $84,200

Your minimum hourly rate: $112 ($84,200 ÷ 750 hours)

Suddenly, that $50/hour doesn't look so good.

The Three-Bucket Pricing System

Once you know your baseline rate, use this simple system to price any job:

Bucket 1: Standard Jobs (Your Bread and Butter)

These are routine calls you've done hundreds of times. Price them confidently.

Formula: (Time estimate × hourly rate) + materials + 20% buffer

Example - Toilet replacement:
- Time: 2 hours × $112 = $224
- Materials: $300
- Buffer (20%): $105
- Total: $629

The buffer covers unexpected complications and protects your margin.

Bucket 2: Complex Jobs (Problem-Solving Premium)

Complicated repairs, custom work, or jobs requiring specialized skills. Charge more because you're solving problems others can't.

Formula: (Time estimate × 1.5 × hourly rate) + materials + 30% buffer

Example - Electrical troubleshooting:
- Time: 3 hours × 1.5 × $112 = $504
- Materials: $150
- Buffer (30%): $196
- Total: $850

Bucket 3: Emergency/After-Hours (Premium Pricing)

Nights, weekends, holidays, or urgent calls. You're sacrificing personal time and availability.

Formula: (Time estimate × 2 × hourly rate) + materials + trip charge

Example - Emergency plumbing at 9 PM:
- Time: 1.5 hours × 2 × $112 = $336
- Materials: $80
- Trip charge: $150
- Total: $566

Trade-Specific Pricing Strategies

HVAC Contractors

- Maintenance calls: Flat rate ($150-300) regardless of time
- Repairs: Diagnostic fee ($99-150) that applies to work
- Installations: Price by system size, not hours

Want HVAC-specific pricing templates? Try our HVAC Pricing Calculator for instant estimates.

Electricians

- Service calls: Always include a minimum ($150-200)
- Panel work: Premium pricing (1.5× normal rate)
- New construction: Bid by square footage or fixture count

Get electrical pricing guidance with our Electrical Pricing Calculator.

Plumbers

- Drain cleaning: Flat rate ($150-300) with guarantees
- Water heater install: Package pricing ($1,200-2,500)
- Emergency calls: Double rate + trip charge

Check out our Plumbing Pricing Calculator for competitive rate guidance.

Handymen

- Small repairs: 2-hour minimum
- Project work: Day rate ($500-800)
- Odd jobs: Time and materials with markup

How to Present Prices Without Losing Jobs

The Confidence Factor

Never apologize for your prices. "This job is $650" sounds better than "Well, I think it might be around $650, but I could maybe do it for less."

Break Down Big Numbers

Instead of "$2,400 for the job," say:
- Labor: $800
- Materials: $1,200
- Permits and disposal: $200
- Warranty and follow-up: $200

People feel better when they see where money goes.

Offer Options, Not Take-It-Or-Leave-It

- Good: Basic repair with 30-day warranty ($450)
- Better: Quality repair with 1-year warranty ($650)
- Best: Premium repair with 2-year warranty + maintenance ($850)

Most choose the middle option, but you've anchored them higher than your original price.

When to Walk Away (Price Objection Responses)

"That's Way Too High"

"I understand it's an investment. Let me break down what you're getting for that price..."

Then explain your warranty, quality materials, proper permits, insurance coverage, and follow-up service.

"My Brother-in-Law Said It Should Cost Half That"

"I appreciate you sharing that. I price my work to include proper materials, full warranties, and the peace of mind that comes with hiring a licensed professional. What matters most to you for this project?"

"Can You Do It for Less?"

"I've priced this fairly based on the work involved. I could reduce the cost by [specific compromises], but I don't recommend it. Would you like me to explain why?"

If they insist on cheap, let them go. Cheap customers become problem customers.

Pricing Red Flags That Cost You Money

Red Flag #1: Competing on Price Alone

If your main selling point is "cheapest," you're attracting customers who'll drop you for someone $20 cheaper. Focus on value instead.

Red Flag #2: Not Charging for Travel Time

Your time driving to them is billable time. Include it in your pricing or charge a trip fee.

Red Flag #3: Free Estimates for Small Jobs

Estimates under $500 should include a service call fee. Your time has value.

Red Flag #4: Not Raising Prices Annually

Costs go up every year. Your prices should too. Aim for 3-5% annual increases.

Red Flag #5: Hourly Pricing for Everything

Flat-rate pricing often pays better and customers prefer knowing costs upfront.

Real-World Examples: Before and After

Case Study 1: Mike the Handyman

Before: $40/hour, worked 60 hours/week, stressed about money
After: $85/hour minimum, 2-hour minimums, project-based pricing
Result: Same income working 35 hours/week

Case Study 2: Sarah's Electrical

Before: Competed on lowest price, 15% profit margin
After: Value-based pricing, premium service positioning
Result: 40% profit margin, better customers, less stress

Case Study 3: Tom's Plumbing

Before: Time and materials, customers questioned every hour
After: Flat-rate pricing with options
Result: 25% revenue increase, fewer price objections

Your 30-Day Pricing Implementation Plan

Week 1: Calculate Your Numbers

- Figure out true hourly rate
- Review last 20 jobs for time/profit analysis
- Set new baseline pricing

Week 2: Create Your Price Book

- List common jobs with flat-rate prices
- Develop your three-tier options
- Practice presenting prices confidently

Week 3: Test New Pricing

- Quote 10 jobs using new system
- Track acceptance rate and pushback
- Refine presentation based on feedback

Week 4: Optimize and Scale

- Analyze which price points work best
- Adjust pricing for different customer types
- Create templates for quick quoting