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Setting prices & margins · UK trades

Day rate vs fixed price: Which is better for UK trades?

Fixed price is better when you can measure the work and you control the site. Day rate is better when you cannot see the time, or they will keep adding “while you’re here”.

Neither is a personality. Both start from the same true hourly rate. A £180 “day” that is really six hours plus two in the van is not competitive. It is unpaid travel.

Customers ask for a number. You like a number because it wins the WhatsApp. Then the job grows and the number does not. Day rate feels awkward to say. It is often the honest product.

Criteria

QuestionFixedDay rate
Can you measure it from a visit or a drawing?YesNo
Do you control access, other trades, drying time?YesNo
Will they change their mind on site?RiskyFits
Is it stripping out, faults, or opening up?RiskyFits
Is it a repeatable install you have done ten times?FitsOptional

Use this when

  • Fixed price: new radiator on a known pipe run, hanging a door in a finished opening, a measured kitchen fit-off. You know the hours within a band you will stand behind.
  • Day rate: first-fix when the carpenter is late, tracing a leak, refurb where every wall is a surprise, a customer who lives on site and “has ideas”.

A day rate is not eight hours of invoice for eight hours of presence. It is chargeable hours that day — often six on the tools after travel — times your true hourly rate. If the rate is £40 and you honestly charge six, the day is £240, not £320 of fiction and not £150 to “get in”.

Day building blockExample
True hourly rate£40
Hours you can actually charge today6
Day rate£240

You can mix: day rate to open up, fixed price once you can see. Write the switch. Do not start “day rate” and silently freeze it when they ask what the total will be — that is a new quote.

What people miss

A cheap day to win the diary. If the day does not carry van, tax buffer, and unpaid quoting, you are buying the job.

Fixed price with no scope. “Decorate the lounge” is not a price. Walls, ceiling, woodwork, filling, number of coats — or it is a day-rate job in disguise.

They heard day rate as a cap. Say that days continue until the written scope is done, or agree a review after two days.

CIS and “cash days”. A day rate is still taxable work. Under CIS, know what is labour. Do not invent a cheaper day because someone asked for cash.

Related guides

FAQ

Which one do customers prefer?
A fixed number. Give it when you can stand behind it. When you cannot, a clear day rate beats a fake total.
Can I charge a half day?
Yes if a half day is actually half the chargeable hours plus travel. A “half day” that still costs a full van run should be a minimum call-out.
Should materials sit inside the day rate?
Usually no. Day rate is labour time. Materials are net plus wastage plus markup.
What if I go faster on a fixed price?
That is the point of a fixed price you measured. You keep the gain. They bought the job, not your clock.

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WhatsApp

0:24

Alright Pencil, need a quote for Dave on High Street. Full repaint of the hall, stairs, and landing. Call it £220 for materials, 3 days labour at £200 a day, plus VAT. Address is 14 High Street, TN11 8LX.

PDFQuote_Dave_Decorating.pdfPDF

Quote for Dave Smith, TN11 8LX

Hall, stairs and landing repainting£600.00

Materials (paint, primer, protection)£220.00

Total: £820+VAT (£984)

Dave just called, he wants the 4 internal doors glossed as well. Add £120 labour for those and set the start date for next Thursday the 8th.
PDFQuote_Dave_Decorating_v2.pdfUpdated · PDF

Quote for Dave Smith, TN11 8LX

Hall, stairs and landing repainting£600.00

Materials (paint, primer, protection)£220.00

Gloss 4 internal doors£120.00

Total: £940+VAT (£1,128)

Start date: Thursday, 8th October

Preview of a UK decorator PDF quote generated with Pencil