How do you go about pricing your services for profit?

I'm a one-man shop, my overhead is low. I confirm everything I can think of and do research to make sure there's nothing else I need to include. I also make sure to pad my labor by an hour or two. I tend to think I can do more than I actually can in the course of a day, so it tends to help with both controlling my rate and completion time in my favor.

 Key Point Deliverance 

I had to see what the going rate was for Residential Cleaners in my area. I did this by looking online for the top companies that offered instant quotes. I plotted the quotes and did as many as I needed to gauge size and type of service. From there, I had more of a sense for what i should charge, taking into account my time and materials.  

Based on what I create and the materials and time it takes to turn them into a functional piece of art, I price my pieces at anywhere between $300 to $1100 a piece. Most people would say that my products are overpriced but I’d say most of what I create is art first and then functional and art is subjective. If someone is willing to pay for the cost of my products, then it becomes the worth and value. Just my line of thinking. 

Hello Im new here and i read the comments and thanks all was very imformative and helpful with the economy increase and tariffs fees when ordering supplies outside of the US.

This is a great question! Ive heard people survey their clients but you can always do price analysis to your competitors as well and then price according to what feels right for you. You can adjust as you go. 

Very true but its a very important step to actually be profitable. You cant look at it like a burden to your customer, you have to understand you cant serve your customers properly if you are not profitable.

Make sure you are including all costs and expenses in your quote.  Some of the small, missed expenses can really cut into your bottom line.  I typically multiply the cost of parts x 3.  Labor is quoted at 2.5 x the hourly rate.  I make sure that I am quoting about 60% gross margin so I have room for contingencies that may come up.  

Most contractors price for survival, not growth. And when you do that, even a good month leaves you broke.

So here’s how I approach it:

1. Build your price from the ground up.
Start with your real costs, not your feelings.

Labor (your time AND your team’s time)
Materials (with markup)
Overhead (truck, insurance, gas, dump fees, software)
Admin (quote time, phone calls, customer service)
Profit (15–30%) — non-negotiable
If you’re not adding that last line, you’re doing it wrong.

2. Communicate value before price.
When it’s time to raise prices, don’t open with “Sorry, we had to...”
Lead with the value:

“We’ve upgraded equipment, improved turnaround times, and added better materials — which means a smoother job for you and a cleaner result.”
Then say it straight:

“To continue offering this level of quality, we’ve updated our pricing to match today’s costs.”
Clients respect clarity. Not excuses.

3. Don’t fear the price walkaway — fear the resentment.
You’re afraid of losing a client over a price bump?

You should be more afraid of resenting the client because you’re working for scraps.

If someone flakes over $100… they were never your client.
If they respect your work — they’ll respect your growth.

4. Put it in writing, not emotion.