Stop Hoping, Start Knowing: The 5 Steps to Profitable Job Pricing in Construction

?Every Job Can Fuel Your Growth—Here’s How:

As a construction business owner, the thrill of winning a new job can quickly turn into anxiety if the numbers don't add up at the end. You shouldn’t have to hope there’s enough left over for profit, your pay, or taxes after the dust settles. Instead, pricing for profit should be deliberate, intentional, and foolproof. Here’s the five-step framework to ensure every job adds to your success:

1. Calculate Your “Real” Revenue: Don't let top-line numbers deceive you. Subtract direct costs for materials and subcontractors to see what you truly have to work with. This is your real revenue—the actual amount from which your business can begin to profit.
2. Scrape Your Profit First: Profit isn't what's left after all expenses; it's what you prioritize before anything else. Set aside a designated profit percentage right off the top. This ensures you're building a cushion for growth and stability with every project.
3. Set Aside Owner’s Pay: You’re the backbone of your business. Allocating a fixed percentage of every job to your own compensation is not just fair—it’s crucial. This ensures your dedication pays off consistently, safeguarding your personal financial stability.
4. Allocate for Taxes: With profit and your pay secured, it’s time to be proactive about taxes. Setting aside a predetermined portion for taxes from every job means no surprises come tax season, just peace of mind.
5. Cover Your Operating Expenses (OpEx): What’s left after profit, pay, and taxes? This is what you’ll use to run your business. Ensuring your OpEx are covered means your business operates smoothly without risking the lights going out.

Implementing this framework means you never have to gamble on a job's profitability again. Every contract brings peace of mind, knowing it strengthens—not strains—your business.

Why wait? Grab our Contractor's Profitable Pricing Quick Check Tool now, and start applying these steps on your next job. Ensure it’s profitable, stress-free, and a true asset to your business growth.

??Download the Quick Check Tool for Free