Get Your First Customers
How to Price Your First Job When You Have No Reference Point
Short answer
Price by: (1) calculating your true hourly cost (overhead + target profit + taxes ÷ billable hours), (2) checking 3 local competitors for the going rate, (3) pricing at-or-above the local rate, never below. Cheap pricing attracts cheap customers and tanks your reputation.
The first job sets a precedent for every job after it. Charge a 'just to get going' rate and you'll spend years climbing out of it.
The 3-step pricing formula
- Calculate your true hourly cost: (annual overhead + target salary + 30% taxes + insurance) ÷ realistic billable hours (1,200–1,500 per year). Most solo trades land at $85–$165/hour minimum.
- Research 3 local competitors. Call as a customer, ask for a quote on a typical job. Note their hourly rate or flat fee.
- Set your price at the median of the 3 quotes, or slightly above. NEVER undercut the lowest — you'll signal cheap, not competitive.
Pricing models for service work
| Model | When to use |
|---|---|
| Hourly | Diagnostic work, troubleshooting, unknown scope |
| Flat-rate per job | Recurring services with predictable scope |
| Time + materials | Larger projects with variable supplies |
| Tiered packages | Services with clear good/better/best options |
Frequently asked questions
What if I lose jobs by pricing at market?
Good. You can't grow a business serving customers who only pay below-market. Aim for a 30–50% close rate at fair pricing — higher means you're too cheap.
Invoice from day one.
Glo Invoice is free for 14 days for new owners — your first invoice goes out in under 60 seconds.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.