Been crunching numbers on my recent projects, trying to figure out if I’m actually making money. It’s tricky with service work - so many hidden costs.
Anyone else struggle with this? I feel like I’m either undercharging or missing something in my calculations.
Been there, still figuring it out. Here’s what’s working for me:
I use a basic project tracker. For each job, I list:
Then I add my profit margin on top. Started at 20%, adjusting based on how things go.
Key things I’ve learned:
It’s not perfect, but it’s way better than before. I’m catching those hidden costs that used to eat into my profits.
Don’t be afraid to raise your rates if the numbers show you’re not making enough. Clients who value your work will understand.
Here’s how I do it:
Track every expense. Materials, gas, tools, even a bit for office stuff.
Figure out your hourly rate. What you need to make in a year, divided by hours you can actually bill. That covers slow times and profit.
For each job, estimate hours and costs. After it’s done, compare to what really happened.
Keep it all in a simple spreadsheet. Nothing fancy.
Over time, you’ll see which jobs make money and which don’t. Raise prices where needed.
Don’t forget to include some buffer. Things always take longer or cost more than you think.
It’s not rocket science, just pay attention to the numbers.
Don’t bother with fancy math. Just add up costs and tack on extra for pocket money.
I just add up what I spend and tack on some extra.
Nothing fancy, just enough to keep the lights on and maybe grab a beer after work.
If I’m not making enough, I charge more next time.
Took me a while to get this right. Now I use a basic spreadsheet for each job.
I list out all costs - materials, subcontractor fees, travel, even a portion of my monthly bills. Then I add my hours and multiply by my hourly rate.
The tricky part was figuring out that rate. I calculated what I need to make yearly, divided by workable hours. It includes profit and covers slow periods.
After a job, I update with real numbers. Over time, I’ve spotted which types of work are most profitable.
It’s not perfect, but way better than guessing. And it helps me explain prices to clients when needed.
I keep it simple. Track all my costs, including time, materials, and overhead. Then I add my desired profit on top.
For each job, I estimate hours and expenses upfront. After it’s done, I compare the actual numbers. This helps me price future work more accurately.
It takes practice, but you’ll get better at estimating over time.