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What is your true hourly rate?

What you actually earn per hour once travel, quoting and invoicing are counted.

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A typical job

$
h
min
min

Visit, estimate, writing, follow-ups. Count lost quotes too.

min

Invoicing, payment reminders, calls, coordination.

$
$

Your true hourly rate

$73/h

You were probably thinking $150/h.

Hours really spent

4.6 h

Left after materials and fuel

$335

Gap with the rate you think you make

−$77/h

Share of time actually on the job65 %

To really earn $150/h on this job, you would need to charge $803, or cut unbilled time.

The time you work without billing

Travel, the evening quote, the Sunday invoice, payment reminders: a three-hour job is often five. That is normal in a service trade; setting prices without counting it is not.

Two ways to close the gap

Charge the price that covers the real time, or cut the unbilled time: pre-filled quotes, invoices that go out when the job is done, jobs grouped by area.

Questions

Should I count lost quotes?

Yes. The time spent on quotes that never sign is part of the cost of the ones that do.

My real rate is low. Should I raise prices?

Often, yes. A moderate increase announced in advance drives very few customers away, and drops straight to profit.

Essential $499/month, or Growth $1,999/month with managed ads and Google profile. Prices in CAD, plus GST/HST. See both plans

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