Why You Should Audit Your Trade Quotes Monthly

Many tradies set a flat hourly rate or margin at the start of the year and never look at it again. This is a recipe for disaster when material costs rise or your overheads shift. By auditing your completed jobs monthly, you can see if your estimates are actually hitting your target profit margin.

Start by comparing the materials and labor hours you quoted versus what you actually spent. If you find that you are consistently underquoting on specific types of projects, you know exactly where you are losing money. Use this data to adjust your future quotes so you stop paying for your clients' projects out of your own pocket.

Beyond just looking at materials, pay attention to 'hidden' time. Things like picking up supplies, driving between sites, or excessive client communication often get left out of quotes. If these tasks are eating into your margins, consider adding a project management fee or increasing your labor rate to cover this non-billable time.

Consistency in your auditing process builds a stronger business. When you know your real numbers, you can confidently turn down low-margin work that wastes your time. Focus your energy on the types of jobs that consistently deliver the profit you need to grow your business.