Are You Really Pricing Your Remodeling Jobs Correctly?

.Are You Actually Making Money?
If you're like most remodelers, you've probably looked at your numbers at the end of a job and thought:
"I worked my tail off… so where’s the money?"

The reality? If you're only charging for labor and materials—and you're not factoring in setup time, travel, transition delays, or overhead—you’re leaving money on the table. Or worse, you’re working for free.

This post is about fixing that.
We’re going to get clear on what it actually costs to run a remodeling business, define the financial terms you need to understand, and show you how to price your jobs profitably.

Why Most Remodelers Are Losing Money
It’s not because you’re lazy. It’s not because you’re unskilled. It’s because the pricing model you’re using probably has holes in it.

1. You’re only charging for what you can see.
Materials. Labor. Maybe subs.
But what about the two hours you spent picking up tile? Or the day lost waiting on the electrician to finish?

2. You’re confusing markup and margin.
This one’s huge.
A 50% markup does not mean you’re making a 50% profit. A 50% markup gives you a 33% margin—and that might not be enough to keep your business above water.

3. You’re ignoring overhead.
Your business has fixed monthly expenses:
Insurance, vehicles, software, tools, marketing, admin time.
If each project isn’t contributing its fair share to cover these, you’re operating at a loss and don’t even know it.

The Pricing Terms You Need to Know
Let’s simplify the financial language so you can build a model that works.

Cost of Goods Sold (COGs)
Direct project expenses: materials, labor, subs. If it’s tied to one specific job, it’s a COG.

Markup
The percentage you add to your COGs to determine your selling price.
Example: If your COGs are $20,000 and you apply a 50% markup, you charge $30,000.

Margin (Gross Profit Margin)
Your profit as a percentage of the total sale.
In the above example, your $10,000 profit is 33% of $30,000.
That’s margin.

Overhead
Your monthly fixed costs—everything it takes to keep your business running whether you’re on a job or not.

Non-Billable Time
Setup. Cleanup. Driving. Material runs. Admin work. Time that isn’t directly charged to a job but costs you money.

What You’re Missing in Your Estimates
Here’s where things get expensive—quietly.

Most remodelers price jobs assuming they’re only paying for what happens on site. But what about:

Setup and breakdown time

Travel to and from the job site

Waiting for inspections or subcontractors

Time spent sourcing materials or fixing supplier issues

Warranty work and callbacks

Admin time for proposals, permits, coordination

If you're not building these into your pricing, you're paying for them out of your own pocket.

How to Fix Your Pricing
Step 1: Track your actual costs—including all the non-billable hours.
Step 2: Allocate a portion of your monthly overhead to every job.
Step 3: Use a markup that gives you a margin of at least 40%—if not more.
Step 4: Build in a profit, not just survival. You deserve to get paid for the risk you take and the value you deliver.

What Would It Look Like to Get Paid for Everything?
Imagine this:

Every mile you drive is covered.

Every minute your crew spends setting up is built into your price.

Every hour of admin time is accounted for.

You finish jobs with a clear profit—and your bank account reflects it.

You don’t have to rush jobs, cut corners, or “hope” you’ll come out ahead.

That’s what happens when you price accurately, confidently, and strategically.

The Big Lesson
Remodelers: You don’t need to be the cheapest.
You need to be the best—and the best gets paid for the value they bring.

This industry is full of risk. One bad estimate, one delayed permit, one wrong assumption—and your margin disappears.

If you’re pricing too close to the edge, you’re not building a business—you’re rolling the dice.

​Charge what it’s really worth. Build in time. Build in overhead. Build in profit.