Those working in the trades and construction industry here in France are no doubt seeing the cost of materials rise consistently. Construction materials in France have never been inexpensive, and recent years have only increased the pressure on trade businesses. And trades are often compared to other \u2018trades\u2019 who may not be appropriately registered\/insured to carry out regulated work, or up against homeowners who would rather pay for materials themselves.<\/p>\n\n\n\n
In this article, we want to share the spotlight on pricing. Many trades are reluctant to increase prices for fear of losing work to competitors. Yet absorbing rising costs is rarely sustainable. A full diary does not automatically mean a profitable business, and underpricing today often creates financial pressure tomorrow.<\/p>\n\n\n\n
If you’re tired of seeing profits disappear despite being busy, this is a must-read.<\/p>\n\n\n\n
Raising your price isn\u2019t about charging more for the same work. It\u2019s about pricing properly and helping clients understand the value you offer.<\/p>\n\n\n\n
Some trades operate under business structures that require less formal accounting than others. The microentrepreneur regime often allows for simpler administration, but understanding your costs remains just as important.<\/p>\n\n\n\n
Trades operating in other regimes will be only too aware of the need for accounting. But making sure your costs are covered applies to all businesses, not just those who are in the trades.<\/p>\n\n\n\n
Ask yourself:<\/p>\n\n\n\n
If you\u2019re absorbing small costs along the way, that\u2019s a slow leak. To fix this, you need to transition from reactive pricing to a proactive business strategy.<\/p>\n\n\n\n
Before raising your prices, it\u2019s worth checking if your current rates actually cover your costs. Many builders price based on labour and materials with a percentage added on top, but they often overlook the cost of running the business itself.<\/p>\n\n\n\n
Your overheads include:<\/p>\n\n\n\n
These costs don’t stop when you’re off-site. If they aren’t built into your pricing accurately, you\u2019re effectively paying for them yourself. Knowing what you need to bring in to cover all your professional and\/or personal costs is a major eye-opener.<\/p>\n\n\n\n
Professional trades don’t simply price labour and materials.<\/p>\n\n\n\n
They also absorb:<\/p>\n\n\n\n
Professional administration, insurance compliance, detailed devis and contractual obligations all form part of the service a compliant trade business provides. These costs are rarely visible to homeowners, but they form part of operating a compliant and sustainable business. When trades fail to recover these costs, profitability suffers even when workloads remain high.<\/p>\n\n\n\n
\n\nA full diary doesn’t automatically mean a profitable business.<\/strong><\/em><\/h2>\n<\/blockquote>\n<\/blockquote>\n\n\n\n
Being busy doesn’t always mean being profitable<\/strong><\/h3>\n\n\n\n
One of the biggest misconceptions in the trades is that a busy diary equals a healthy business. Many trades are fully booked yet still struggle with cash flow because their pricing doesn’t accurately reflect the true cost of running the business. Revenue is important, but profitability is what allows a business to grow, invest, and remain sustainable.\u00a0 Turnover pays the bills. Profit builds the business.<\/em><\/p>\n\n\n\n
To increase your rates without losing jobs:<\/strong><\/h2>\n\n\n\n
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- Price the job properly<\/strong>: Include all your costs, not just labour and materials. Factor in overheads such as fuel, insurance, and the time you spend on quoting and managing projects. Very often, it’s the behind-the-scenes costs customers don’t see that get overlooked.<\/li>\n\n\n\n
- Make your devis easy to understand<\/strong>: Provide a clear breakdown of what\u2019s included so clients can compare quotes properly and see the difference in quality. A succinct, clear devis, where there is no ambiguity and a client can see exactly what they are getting, will often win over a devis that lacks detail and leaves the client having to ask questions.<\/li>\n\n\n\n
- Control extras and changes<\/strong>: Always agree and confirm the cost of additional work in writing before you start, so your margin is protected. These should be clearly stated in your terms and conditions. Trades know that jobs can often lead to unexpected discoveries once underway, so your client needs to know how this will be handled.<\/li>\n\n\n\n
- Build trust with clients<\/strong>: Show examples of completed projects, share testimonials, and communicate clearly throughout the quoting process. Many homeowners are not simply buying a service; they are buying confidence that the work will be carried out professionally and responsibly.<\/li>\n<\/ul>\n\n\n\n
How to handle cheaper devis<\/strong><\/h2>\n\n\n\n
It is customary for homeowners to shop around, obtain several quotes, and conduct their due diligence. And there will be times when your devis is up against competition and a lower price. It can be disheartening, especially when a lot of effort has gone into research, preparation, pricing, and the delivery of clear, easy-to-understand paperwork.\u00a0<\/p>\n\n\n\n
You might say:<\/strong> \u201cI understand you\u2019ve had a cheaper quote. Can I check what\u2019s included in that? We\u2019ve allowed for [specific items], which are sometimes missed. I\u2019d rather be clear now than have unexpected costs for you later.\u201d<\/em><\/p>\n\n\n\n
A homeowner comparing three quotes is not always looking for the cheapest option. Many are looking for:<\/p>\n\n\n\n
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- confidence,<\/li>\n\n\n\n
- clarity,<\/li>\n\n\n\n
- professionalism,<\/li>\n\n\n\n
- responsiveness.<\/li>\n<\/ul>\n\n\n\n
If your only sales strategy is to lower your price, you have already lost control of the conversation.<\/p>\n\n\n\n
Make your devis work harder<\/strong><\/h2>\n\n\n\n
When a homeowner presents a lower-priced quote, the temptation is often to reduce your own price to remain competitive. However, before doing so, consider whether you are comparing like-for-like proposals. Differences in TVA status, insurance coverage, materials, specifications, warranties, and scope of work can all affect the final price.<\/p>\n\n\n\n
A business operating under a TVA exemption and a business charging TVA are not always directly comparable. The homeowner may simply see two different prices without understanding the underlying business structures behind them.<\/p>\n\n\n\n
A clear, structured devis protects your business. It should have clear Terms and Conditions which set out what\u2019s included, what isn\u2019t, and any assumptions you\u2019ve made.<\/p>\n\n\n\n
The importance of devis validity periods<\/strong><\/h2>\n\n\n\n
Many trades will remember when a devis commonly carried a validity period of three months. Today, with material prices fluctuating more frequently, many businesses have reduced this to 30 days or less.<\/p>\n\n\n\n
This isn’t about pressuring a homeowner into making a quick decision. It’s about protecting both parties from unexpected price increases.<\/p>\n\n\n\n
For example, a devis may be accepted and an acompte paid, but materials might not be ordered for several weeks. During that time, supplier prices can increase significantly. Even a relatively small increase in the cost of cable, timber, or fittings can affect a project’s profitability.<\/p>\n\n\n\n
A professional margin provides some protection against these fluctuations, but your devis should clearly state its validity period and any assumptions relating to material pricing.<\/p>\n\n\n\n
Just as a professional devis protects the homeowner, it should also protect the trade business issuing it.<\/p>\n\n\n\n
Protect your margin during the job<\/strong><\/h2>\n\n\n\n
Profit often slips when changes are handled informally once a project starts. One of the biggest threats to your business’s sustainability is performing extra work without a documented price.<\/p>\n\n\n\n
Manage variations proactively<\/strong><\/p>\n\n\n\n
Get into the habit of confirming changes in writing before any work begins:<\/p>\n\n\n\n