Why You Keep Underpricing Jobs

Read This First

You can be slammed with work and still watch your bank account tell a different story. Most jobs aren’t underbid on paper; they just take longer than the hours you used in the bid. That difference doesn’t show up until the job is already done.

Where It Actually Goes Wrong

Most estimates are built on how the job should go. In reality, small things slow everything down. You lose an hour here, half a day there, and keep moving. You don’t reprice the job. You absorb it. That’s where the margin goes.

The Part Nobody Says Out Loud

Most guys don’t underprice because they don’t know better. They do it because they’re trying to make sure they get the job. You look at the number, think it might be a little high, and shave it down just enough to feel safe. That works in the moment. Over time, it puts you in a position where you’re working a full schedule at numbers that only work if everything goes right. The jobs you win by being the cheapest are usually the ones that cost you the most.

What to Do

You don’t need to change everything overnight. Start small. Add ten to fifteen percent more time to your estimates. Track which jobs run long and by how much. On a few jobs each week, price it the way it actually needs to be priced and see what happens. Most shops find out they weren’t losing as many jobs on price as they thought.

Bottom Line

If you’re busy but the numbers don’t match, don’t just look at your pricing. Look at your time. That’s usually where it’s getting lost.