Why Most Tradies Underquote (And How to Stop Doing It)
Blog / Stop Underquoting
Underquoting isn’t usually a math problem. It’s a scope problem. Most tradies aren’t trying to win work by going cheap — they’re just missing the quiet stuff that eats margin: extra trips, unknowns on site, late changes, and a few extra hours that never make it onto the invoice.
The fix isn’t complicated. You need a tighter way to capture scope, price labour properly, and keep a clear paper trail. Here is a practical playbook to stop leaking money on every job.
1. Start with a scope checklist (not a guess)
Most underquotes happen before you’ve even looked at the job properly. If you don’t capture scope, you can’t price it.
- Site access: ladders, access equipment, shut-down windows.
- Compliance: permits, testing, certification, or inspection costs.
- Unknowns: rotten timber, asbestos risk, undocumented wiring.
- Client preferences: finish level, materials, timeline constraints.
If you’re quoting off a phone call, you’re quoting blind. Walk the job or get enough photos and notes to remove the guesswork.
2. Price labour like a business, not a bloke
The quickest way to lose money is to undercook labour. Your hourly rate needs to cover wages, insurance, vehicle, overheads, and profit — not just your time on the tools.
- Base hours: the actual work time.
- Admin time: quotes, ordering, client calls, and paperwork.
- Travel: loading, site trips, and material runs.
- Buffer: a sensible margin for unknowns.
If you want a fast way to sanity-check the numbers, use the Job Estimation Wizard to lay out labour, materials, and margin in one place before you send anything to the client.
3. Separate “price” from “scope” in the quote
Clients rarely argue price when scope is locked. Most disputes are because the quote didn’t clearly define what is included. Add a short scope summary and exclusions (e.g., patching, painting, disposal) so the client knows what they’re buying.
A tight written scope also makes variations easy to price later. If it’s not in the scope, it’s a variation — and it’s paid.
4. Track variations like they matter (because they do)
Variations are where margin goes to die. A small change that “only takes 20 minutes” adds up over a month of jobs.
- Record every change on site, even if the client says “just do it.”
- Note what changed, why it changed, and how long it took.
- Send a quick confirmation so everyone remembers what was agreed.
This is where a Day Log matters. Use Scope Guard to capture what you did, when it changed, and who approved it. It’s your protection when the invoice lands.
5. Confirm everything in writing
Most underquoting becomes underpayment when nothing is written down. Get in the habit of sending a quick summary after site visits, changes, or approvals.
If writing isn’t your thing, use the Email Template Generator to send a short, professional confirmation that matches the job tone. It takes two minutes and saves you hours of disputes.
6. Review jobs after the fact
The best tradies learn from every job. Compare your estimate to the actual hours and materials used. If you blew out on a job, add the missing line item to your next quote template.
Bottom line
You don’t need to be the cheapest tradie in town to win work. You need to be the clearest. Lock the scope, price labour like a business, track variations, and confirm everything in writing. When you do that, your quotes stop bleeding and your margins hold.