Stop charging by the hour for small tile jobs, it's killing your profit

I did a backsplash last month for a lady in Portland, took me 4 hours and I charged $400. Should have been $800 easy. The problem is we treat every job like it's time and materials when half the work is setup and cleanup anyway. Bid flat rate for anything under a day of work, you'll make more and the customer is happier knowing the price upfront. Anyone else find that hourly rates just don't work for small finish work?

2 comments

2 Comments

waderamirez2d ago

Flat rate pricing is just a better way to think about value in general. It's like how a mechanic charges you the same for an oil change whether it takes 10 minutes or an hour because you're paying for the result, not the time.

mitchell.thomas3d ago

You're spot on about the Portland backsplash. Hourly rates kill you on small jobs because the prep and cleanup eat up time the customer won't pay for. I bid flat rate for anything under a day now, and I just raised my minimum to $600 for any backsplash. Customers like knowing the price, and I don't have to watch the clock.