Am I underpriced?
Six numbers, about a minute. You'll get the hourly rate that covers your business and your paycheck, and how many weeks a year your current rate has you working for free. It all stays on your phone.
You work 12.6 weeks a year for free.
At $65 an hour, a full year of work brings in what 35.4 weeks should at $88.15. 3.0 of the missing weeks are your own bills and pay. The other 9.6 are the profit. Right now the truck gets paid before you do.
- Paid 35.4 weeks
- Bills and pay not covered 3.0 weeks
- Profit not charged 9.6 weeks
"For free" is measured against your target rate, which is your costs, your pay and the profit you set. It's an estimate from the numbers you typed, not financial or tax advice.
Raise your rate to $90.
This isn't a talking-to. Nobody hands a one-man shop these numbers. At $65 an hour you're under your own break-even of $70.52, so before profit even comes into it, the business and your own pay aren't covered. One number fixes that.
- Every hour you bill38% up from $65
- $25more an hour
- Over the 1,339 hours a year customers pay forif the same hours stay booked
- $33,480more a year
$90 is your target rounded up to the next $5, the way the kit sets a shop rate. New customers start at the new rate.
This one isn't from the kit. Get Paid Texts has no rate-change text, so it was written here in the same voice. Fill in the brackets before you send it.
Before you text the price
Price a job
Priced at your $90 shop rate. Pick the job, check the hours, add the parts. Doing more than one job on the same visit? Add each one. The trip, the minimum and the small-job buffer get charged once, the way the kit prices a ticket.
The sample is a kitchen faucet. Type your job.
Price to text
$230
- Replace kitchen faucet1.5 h at $90$160
- Small-job buffer, under 4 h$24
- Trip charge, once a visit$35
- Contingency, 5%$11
- Price to text$230
Covers your bills and your pay, with 45.2% profit on top. Your target is 20%.
Recent prices on this phone
Trip $35, a 15% buffer on visits under 4 hours, 5% contingency and a $195 minimum are the kit's starting settings. In the kit you set your own. Your rate and costs never go in the text.
Below target
It covered you, barely. Your time earned $75.94 an hour against a $70.52 break-even, a 5.1% margin. To make your 20% on those real numbers it needed $4,035: $635 more.
30% markup is not 30% margin
Markup is what you add on top of your cost. Margin is how much of the final price you keep.
A job costs you $1,000. You add 30% markup, so you charge $1,300. You keep $300, which is 23% of the price, not 30%.
To actually keep 30%, you need about 43% markup. The bigger your target margin, the wider the gap gets. The full markup to margin chart.
Your first 12 prices.
Twelve common jobs from the kit's Price Book, priced at your shop rate (the target rate above, rounded up to the next $5). The formula is the kit's own. Hours × rate, plus supplies marked up 25%, rounded up to the next $5.
Hours and supplies are the kit's starter numbers, not a survey of your market. Change your numbers above and the prices follow.
Opens your own email app with the list filled in. Nothing is sent to us.
| Task | Hrs | Price |
|---|
Priced at a $90.00 an hour shop rate. The kit has 80 jobs like these, and its Price This Job sheet adds the trip and minimum charges.
Get all 80 for $39Make your rate card.
An image of your shop rate to post in a trade group, put on your page or text to a customer who asks why you charge what you do. Only the shop rate shows unless you add more. It's drawn on your device, and nothing gets uploaded.
Print a price sheet for the truck.
Your first 12 prices on one page, with your name and number on top. Clip it to the board or leave it on the dash. They're the same prices as the table above.
Opens your browser's print screen. Pick "Save as PDF" to keep a copy on your phone.
Pass it to someone who prices by gut. The calculator is free and never asks for an email.
Now price every job from it.
The full True Rate kit turns this rate into prices. You get an 80-job price book, a Price This Job sheet with trip and minimum charges, a markup and margin converter, a Was I Right? log, a customer estimate and Get Paid Texts.