Start a Business
How to Price Your First Service Business
A simple pricing framework for cleaning, lawn care, mobile detailing, repair, and other local services.
Start with labor hours, not competitor guesses.
Include travel, admin, taxes, insurance, and profit.
Raise prices when demand proves the offer.
Quick Answer
To price a service business, estimate job time, travel time, materials, overhead, taxes, insurance, payment fees, and desired profit. Then compare the result to what the customer values and what the market supports. If you skip overhead, you may stay busy and still underpay yourself.
Pricing Formula
Base price = direct labor + materials + travel + allocated overhead + taxes/fees + profit. For recurring services, also account for cancellations, weather, no-shows, unpaid admin, and equipment replacement.
Choose a Pricing Model
- Flat-rate packages for predictable work.
- Hourly pricing for uncertain scope, with minimums.
- Per-unit pricing such as per room, per square foot, per lawn, or per visit.
- Tiered packages such as basic, standard, and deep service.
Do This Before Discounting
- Reduce scope instead of reducing price.
- Offer recurring-service savings only when routing or scheduling gets easier.
- Charge rush fees for urgent work.
- Use deposits for large or first-time jobs.
Next Best Step
Track estimated vs actual time for your first twenty jobs. Your real pricing power appears in that gap.