You’re Not Charging Enough: The Hidden Costs Contractors Forget to Include
If you’re a painter, electrician, woodworker, or solo contractor, you probably know how easy it is to work hard all month and still feel like the money doesn’t match the effort.
You’re not imagining it, most small contractors aren’t charging enough, not because of skill or effort, but because of hidden costs that quietly eat into profits.
The Hidden Costs That Shrink Your Profits
Here are the common culprits:
1. Drive Time
Those trips to and from the job site, supply store, and quote appointments add up. If you’re not billing for travel, you’re giving away hours of your life for free.
2. Material Waste
No job is perfect. Paint spills, off-cuts, or re-do’s all have costs. Adding a 10% material buffer helps protect your bottom line.
3. Tool Wear and Maintenance
Every drill, sprayer, and saw blade has a lifespan. Include a small tool depreciation cost in every estimate.
4. Admin Time
Quoting, invoicing, and following up on payments take time. That’s billable labor even if you’re the one doing it.
How to Calculate Your True Profit
It’s simple math, but it requires discipline.
Add all costs (materials, labor, overhead, insurance, gas, admin).
Subtract that from what you billed.
Divide by total revenue to find your profit margin.
If that number isn’t at least 20–30%, you’re underpricing.
The Fix: Track Everything Automatically
You don’t need complex software or spreadsheets — just a clear system that tracks costs and invoices in real time.
That’s why Profifyit was built.
It helps contractors easily:
Estimate jobs accurately (including all those hidden costs)
Log expenses as you go
Generate professional invoices
See true profits per job instantly
With Profifyit, you’ll finally know what every hour and every job is worth, and start charging confidently.
Start Paying Yourself What You Deserve
You work too hard to guess at your profits.
Get clarity, protect your income, and build a business that truly pays you back.
Related reading: How to Price Jobs for Profit (Not Just to Win the Bid)
FAQs
Q1: How can contractors know if they’re undercharging?
A: If you can’t clearly state your profit per job, you’re probably undercharging. Track every expense — materials, time, travel, and compare against your invoiced total.
Q2: What’s a healthy profit margin for small contractors?
A: Most experts recommend aiming for a 20–30% margin after all costs, including labor, overhead, and materials.
Q3: How can I raise my prices without losing clients?
A: Communicate your value clearly. When you deliver professional estimates and high-quality results, clients respect fair pricing.
Q4: Does Profifyit work for all types of contractors?
A: Yes! Profifyit was designed for solo contractors, painters, electricians, woodworkers, handymen, who need simple job costing, estimating, and invoicing tools.
