TradesBuildersPricing and profit

Builder Business PricingTurnover has never been higher. So why is there nothing left at the end of the job?

Pricing for builders: margin versus markup, what your overheads actually cost, how to price a fixed price contract that survives twelve months of escalation, and when a cost-plus contract is the right call. The maths that decides whether your building company survives.

A painted scene of a timber framed house on its slab with the roof trusses up, builders working along the top plate against an open sky

The week this is about

Sound Like Your Building Business?

You are adding a margin you inherited

Someone told you builders run twenty percent, so that is what you put on. You have never worked out what your overheads, your ute, your supervisor and your office actually cost per job, or whether that number covers them.

Margin and markup are not the same number

A twenty percent margin needs a twenty five percent markup on cost. If you have been adding twenty percent to your costs and calling it your margin, you have been short on every job you have ever priced.

The fixed price does not move but your costs do

You signed in autumn and you are pouring in spring. Frame, windows and labour have all moved. Prime cost and provisional sums were set on last year's numbers, and the client is not interested in absorbing any of it.

Under-pricing does not show up on the job you are building now, it shows up eighteen months later when the overdraft will not stretch to the next slab.

A trade business owner working alone at the kitchen table late at night, laptop open and paperwork spread across the table, work boots and tool bag by the door

Pricing and profit

Here Is What We Do About It.

The Profitable Pricing Masterclass fixes the maths: margin versus markup, overhead recovery, what to load onto direct costs. The Profit & Freedom Masterclass takes it further into what the business has to earn to pay you properly. Pricing training in the Learning Hub and Greg hold the new numbers in place when a client pushes back.

Free tool, no sign-up

Charge-out rate calculator

Put in what labour costs you, how many hours you can actually invoice and what the business spends, and it builds the rate that covers all of it and leaves a margin. It runs in your browser and nothing you type is sent anywhere.

Work out your rate

How it works

Three Steps, Starting Tonight.

Step 1

Work out what an hour really costs you

Not the wage. The wage plus the ute, the insurance, the phone, the unbilled hours and the time you spend quoting. Most owners have never put that number on paper.

Step 2

Price off the number, not off the last bloke

The Profitable Pricing Masterclass takes you through building a rate that carries your overheads and a margin, so you stop pricing against whoever is cheapest this month.

Step 3

Hold the price and watch what happens

The Profit and Freedom Masterclass covers the part nobody warns you about: what to do when someone pushes back, and why losing the wrong job is a win.

Greg Allan mid-explanation with his hands open, talking to a trade business owner across a desk

Why Greg

You speak to the owner who has already done it.

Greg built Response Electricians in Perth into a 30+ staff business with 1,950+ five-star reviews. A general manager runs it.

He has trained 9,000+ trade business owners across Australia and New Zealand.

He grew a coaching company to 35 staff, a CEO and 15 coaches, then cut it back so every owner deals with him directly.

Most coaching companies hand you to a salesperson, then to a coach who has never run a trade business. Here you get the owner.

Read how Greg built a trade business that runs without him

What changes for you

The old way. The new way.

Illustration: a trade business owner standing over three office staff buried in paperwork at night.
The old way

More customers meant more people doing the computer work, and more wages nobody invoices.

Illustration: a tradesman shaking hands with a homeowner in her driveway, his phone showing jobs quoted and invoiced.
The new way

You stay with your customers and your team. The office stops landing on you.

The old way

More jobs. More paperwork. Less of the owner left.

Most trade businesses grow the same way.

More jobs means more quoting, invoicing, chasing and scheduling.

None of it gets paid for.

So the owner does it at night, after a full day on site.

Or hires an office person to do it.

The office grows. The wages grow. The margin does not.

And the owner is still the one everything waits on.

Where we take you

More work. More profit. More of you left.

The phone rings with the jobs you want, at the price you set.

You grow when you're ready, never faster than the business can carry.

Every job is priced to make money, so the busy months show up in the bank.

The best tradies in your area want to work for you, and they stay.

The chasing, the paperwork and the 9pm admin stop landing on you.

The business runs the day. You pick which parts of it you're in.

Bigger, without the headaches. Getting bigger stops meaning getting busier.

What changes

What Building Business Pricing Actually Changes.

Three things building business owners walk away able to do.

Work out the markup your overheads and profit actually require, job by job

Price a fixed price contract with escalation, prime cost and provisional sums covered

Know before you sign whether a build will make money or quietly cost you

A trade business owner watching his child play sport on a Saturday morning, coffee in hand and phone face down
Nights and weekends back
A trade business owner and his partner in the kitchen looking at a tablet showing the numbers going up
Work that actually pays
A trade business owner shaking hands with a new apprentice in the work yard
A good hire who stays
A trade business owner standing calmly in the yard while his crew load two utes behind him
Out of the middle of everything
9,000+tradies trained4.9★Google rating4.9★App Store rating

Questions

Builder Business Pricing, Answered.

What margin should an Australian builder be running?
There is no single legal answer, and anyone quoting one without seeing your overheads is guessing. HIA publishes guidance on determining builders margin for its contracts, and cost-plus work commonly sits in a 15 to 25 percent band. The right number is the one that covers your overheads and leaves a profit, which is what we work out with you.
Is builders margin the same as markup?
No, and the difference costs builders money every year. Margin is measured on the sale price, markup is added to your cost. A twenty percent margin requires a twenty five percent markup. Get those two confused and you are short on every job. The Profitable Pricing Masterclass drills it until you cannot get it wrong.
Why do builders with plenty of work still go broke?
Because turnover hides thin margins and the cash lag catches up. Construction recorded 2,832 insolvencies in FY2023-24, around 27 percent of all Australian company collapses, on UNSW analysis. Most of it is under-priced fixed price work, unrecovered overheads and progress claims sitting unpaid while suppliers get paid on time.
A painted scene of a trade business owner home before dark, sitting on the tray of his ute while his son runs to meet him

Join the Waitlist to Work With Greg.

The Crew, daily Q&A and starter courses. Free for trade business owners. No card, no trial clock.

The Academy is at full capacity. Join the waitlist and when a place opens, Greg interviews the owners who look like the right fit.