Pricing, Bidding & Your First Jobs

Price to make money

Don't underbid to win early work. Cover direct cost + overhead + profit, and remember markup vs. margin (a 20% margin needs about 25% markup). One unprofitable job can sink a young business.

Win your first jobs

• Start with your network — friends, family, past employers, and referrals.
• Do great work, then ask for reviews and referrals.
• Build a portfolio of finished projects and happy customers.

Your reputation in the first year sets up everything after it.

Going Deeper (Intermediate)

Price right from your very first job — cost + overhead + profit — and use written contracts and deposits even on small work. The temptation to "buy" early jobs cheap to build a portfolio trains the wrong clients and starts a death spiral that's hard to climb out of.

Advanced / Pro-Level

Winning and surviving your first jobs:

• Know your true cost and break-even as a new shop so a "good price" isn't actually a loss.
• Use deposits and progress payments to fund the cash cycle — a new contractor can't afford to bank the whole job.
• Choose first jobs you can deliver flawlessly — your early reputation, reviews, and referrals are worth more than the margin on any one job.
• Document and photograph everything (CompanyCam-style) for your portfolio and reviews.
• Resist scope creep and "friend pricing" — discounts you can't sustain set client expectations you'll regret.

Practice Challenge

To get started, a new contractor bids three jobs at break-even "to build a name." What's the risk? (Answer: he anchors clients to unprofitable prices, attracts price-shoppers, and can't fund the next job — the start of an underpricing death spiral; better to price properly and win on trust, quality, and a clear proposal.)

In Practice

Desperate for the first job, a new contractor bids at cost to win it — and now has a money-losing project and no cushion. Price for profit even on your first job.

Common Mistakes to Avoid

• Underbidding to win early work
• Confusing markup and margin
• Not building a portfolio and reviews

Takeaway: Price for direct cost + overhead + profit (mind markup vs. margin), win first jobs through your network, and build reputation fast.

Educational overview — codes, permit rules, and business/licensing requirements vary by jurisdiction and change. Confirm with your local building department, attorney, CPA, and licensing board.