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Should I charge by the hour or by the job?

Updated By ProfitDrawer

Short answer

Many service owners quote by the job and use an hourly rate to build that price. ProfitDrawer's price per job calculator starts from hours x the hourly pay you want, adds materials, travel and overhead, then a margin. Flat prices suit repeatable work, such as a $140 recurring clean in our cleaning guide's example. Hourly suits small odd jobs or work you cannot predict. Example numbers only.

By the job (flat rate)

  • Customers know the price up front, which is why flat rates are popular with homeowners.
  • You keep the gain if you get faster.
  • Risk: if a job runs long, you absorb it, so time real jobs before you set flat prices.

By the hour

  • Fits small odd jobs and work where the time is hard to predict.
  • Protects you on jobs that grow.
  • Customers may worry about the final bill, so give an estimate range.

Mixed methods are common. In our landscaping guide, maintenance is a flat price per visit, installs are priced per job (labor plus materials with a markup) and small odd jobs are hourly. Our box truck guide prices local moves by the hour plus mileage, for example 3 hours at $95 plus 30 miles at $1.50 = $330.

Whichever you choose, price it from your real costs and compare with local rates. Example numbers only, not market rates.

Source: Price Per Job Calculator for Service Businesses · Updated

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General information, not tax, legal or financial advice. Check the rules for your state and your situation.