Most tradies learn how to quote a job the hard way: a few jobs priced too low, a few lost to someone quicker, and one argument about what was included. The method is simple. Work out exactly what the job needs, price every line from your real costs, write it down so nobody can read it two ways, and send it while the customer still remembers your visit.
This guide walks through each step, with a worked example you can copy.
Quote or estimate: say which one you're giving
Before you price anything, decide whether the customer is getting a quote or an estimate. They aren't the same thing, and customers often treat an estimate as a promise.
- A quote is a fixed price for a defined job. If the scope doesn't change, the price doesn't change.
- An estimate is your best guess. It can move, but if the final bill lands well above it, expect a hard conversation.
Consumer Protection in Western Australia puts the difference simply: a quote forms a binding contract when it's accepted, while an estimate is an approximate cost that can change. It also notes that under the Australian Consumer Law, a tradesperson must use their skill and experience when estimating costs (WA Consumer Protection). So an estimate isn't a free pass to bill whatever the job ends up costing.
Use a quote when you can see the whole job: a hot water swap, a set of downlights, a fence line you've measured. Use an estimate when you can't see what is behind the wall or under the floor, and say on the page what would change the number.
As business.gov.au puts it, if a customer accepts your quote, it becomes a legally binding contract. Write every quote on that basis.
If it says "quote" at the top, the customer will hold you to the total.
Before you price: get what you need on site
A good quote is decided on site, not at the kitchen table that night. Take five more minutes at the visit and you save an hour later. Use this list:
- Measurements, written down, with a photo of the tape where it matters
- Photos of the work area, the switchboard, the access and anything existing you'll tie into
- Access: stairs, parking, roof pitch, tight spaces, a dog in the yard
- What the customer has already bought, and what they expect you to supply
- Their must-haves and nice-to-haves, in their words
- When they want it done, and anything that limits your hours on site
- Who is paying, and the address the invoice goes to if it isn't the site
Ask one more question before you leave: "Is there anything else you want looked at while I'm here?" It catches the second job early, and it stops the scope growing after the price is agreed.
Price every line from real costs
A quote that holds up is built from lines, not from a feeling about what the job is worth. Most trade jobs break into the same parts.
Labour
Hours on site multiplied by your charge-out rate. Count travel, setting up, cleaning up and the trip to the supplier, because all of them come out of your day. If you haven't worked out your rate properly, read how to calculate your charge-out rate first. A rate that only covers your wage leaves nothing for the ute, the insurance or a quiet month.
Materials
What you pay, plus a markup. The markup covers the time you spend picking up, the stock you carry and the warranty risk you take on. Many trades mark materials up somewhere between 10 and 30 percent. Whatever you pick, use the same figure every time so your quotes stay consistent.
Subcontractors and hire
Anyone else you need on the job, at their price plus your margin for organising them. The same goes for a scissor lift, a skip or a concrete pump.
The things that get forgotten
These are where a fair price turns into a job you lose money on:
- Disposal and tip fees
- Consumables: fixings, sealant, cable ties, sanding discs
- Parking, tolls and the second trip when a part is wrong
- Making good: patching, painting a cut-in, re-laying a paver
- A contingency for estimates on older houses
GST
If you're registered for GST, add 10 percent and show it. If you quote a household customer, the total they see should include GST, so there's no surprise on the invoice.
A worked example
Here is a simple electrical job priced line by line: six LED downlights and a ceiling fan in a living room, single storey, easy roof access.
| Line | Working | Amount |
|---|---|---|
| Labour | 3.5 hours at $105 | $367.50 |
| Downlights | 6 at $35 each (cost $28, 25% markup) | $210.00 |
| Ceiling fan | Cost $184, 25% markup | $230.00 |
| Cable, connectors, sundries | Allowance | $40.00 |
| Subtotal | $847.50 | |
| GST | 10% | $84.75 |
| Total | $932.25 |
Notice what the lines tell the customer. The fan is a real fan at a real price, the labour is a number of hours they can picture, and the sundries line is small and honest. Compare that with one line reading "Supply and install lights and fan: $930". Same money, but the first version shows your working and makes you look like the professional option.
What to put on the quote
A quote is a document you may have to rely on later. Put this on every one:
- Your business name, ABN, phone, email and licence number
- The customer's name and the site address
- A quote number and the date
- The scope of work, in plain words
- Line items with prices, and the total including GST
- What isn't included
- Any assumptions, such as "existing cable is in good condition"
- How long the price is valid
- Payment terms, including any deposit
- How variations are handled and priced
- How to accept
Write the scope so it can't be argued
Vague scope is the cause of most disputes over a finished job. Write it the way you would explain it to an apprentice who has never seen the house.
| Vague | Clear |
|---|---|
| Install lights in living room | Supply and install 6 LED downlights (warm white, 90mm cut-out) in the living room ceiling, positions as marked on site |
| Fix leak | Replace the failed flexible hose under the kitchen sink and test for leaks. Doesn't include repairs to the cabinet base |
| Paint bedroom | Two coats to walls and ceiling of bedroom 2, colour supplied by owner. Patch nail holes only. Doors and trims not included |
The "not included" part does as much work as the scope itself. It's much easier to say "that wasn't in the quote" when the quote says so.
Set a validity period
Material prices move. A validity period of 30 days is common and fair. For anything with copper, steel or imported fittings, you might shorten it to 14 days and say so.
Send it the same day
The single biggest thing you can do to win more quotes is send them sooner. A customer who has had three tradies through the house will often go with the first sensible price that lands, not the cheapest one that arrives on Sunday night.
Aim to send the quote before the end of the day of the visit. For a straightforward job, send it before you leave the driveway. That's far easier when you've saved prices for the things you quote all the time, so you aren't looking up the same downlight every week.
Follow up without being a pest
Most quotes that go quiet aren't a no. The customer got busy, wanted to talk to their partner, or forgot. A short follow-up wins a share of those back.
- Two or three days after sending: a short text. "Hi Sam, just checking the quote for the downlights came through OK. Happy to answer any questions."
- A week after sending: a call if it's a bigger job. Ask if anything in the quote needs changing.
- Before it expires: a last note saying the price holds until a set date.
Then stop. Three touches is follow-up. Six is chasing, and it costs you more goodwill than the job is worth.
Common quoting mistakes
- Quoting from memory. Prices go up, and the number you remember from last year is now too low.
- Leaving out travel and clean-up. Both take real hours. Price them.
- No exclusions. If it isn't written down, the customer can assume it's included.
- One-line quotes on big jobs. A single number invites a haggle. Lines show your working.
- No validity date. Without one, a customer can come back in six months and expect the old price.
- Quoting late. The quote that arrives a week later often loses to the one that arrived the same day.
The short version
Decide whether it's a quote or an estimate. Gather everything on site. Price each line from real costs, including the things that get forgotten. Write the scope so it can't be read two ways, with exclusions and a validity date. Send it the same day, follow up twice, then let it go.
If you want to tighten up what happens after the customer says yes, read how to chase unpaid invoices and what has to be on a tax invoice.
Questions
Yes, as long as you tell the customer before you go out. Charging for quotes is common for large or complex jobs, and many tradies credit the fee back if the customer goes ahead. For small jobs most customers expect a free quote, so weigh the fee against the work you might lose.
Thirty days is common. If the job relies on materials whose prices move quickly, such as copper cable or imported fittings, a shorter period like 14 days is reasonable. Put the date on the quote so there's no argument later.
If you're registered for GST, yes. Show the GST amount and a total that includes it. Household customers compare the final figure, so a quote that leaves GST off looks cheaper and then causes trouble when the invoice arrives.
A quote is a fixed price for a defined scope. An estimate is your best guess at the cost and can change. If you can't see the whole job, give an estimate and write down what would change it.
The same day as the site visit if you can. Customers often go with the first sensible quote that arrives, and a quote sent days later is competing with ones they already have.