How to Price a Fencing Job

1. Clarify the scope of work

Before you can accurately price out a fence job for profit, plan a site visit and meet with your client to discuss their needs and expectations. Walk the property to get a clear sense of the job location, site size, and any materials they prefer. 

This visit is a great time to: 

• Measure the area
• Determine what type of fence your client wants, like a vinyl fence, picket fence, chain link fence, or wooden fence.
• Identify potential challenges like damage, safety hazards, or accessibility issues
• Discuss the timeline for the project

A site visit allows you to address any special requests and understand what might impact the project’s cost or schedule. Meeting your client and assessing the site upfront ensures you’re prepared to deliver an accurate quote and a successful build and hopefully avoid scope creep.

2. Assess and measure the fencing area

Before you can determine how much your materials for the project will cost, you’ll need to figure out how many materials you need by measuring the fencing area and calculating the total linear feet. Here’s how:

• Locate property lines. Installing a fence on the wrong property lines can be a costly mistake. Make sure that the property lines are accurate according to city surveyors. Some homeowners have property line information in their property deeds or mortgage packages. If your client is uncertain, getting official documentation on where the property starts and begins before you begin the build is important.
• Identify potential obstructions. Common obstructions include trees or underground utilities (gas, electricity, and cable). Contact your state’s information centers to locate utility lines if you’re unsure. Then, plan around these obstructions.
• Mark the fence corners. Place stakes at each corner of the fencing area and connect them with tape or string, pulling it taut to avoid slack.
• Measure the perimeter. With the stakes and string as your guide, measure the perimeter of the fencing area in linear feet. This measurement will determine how much fencing material you’ll need and form the basis for your pricing.

Charging by linear feet ensures transparency and consistency, making it easier for you and your clients to understand how you calculate costs.

3. Estimate the material cost

Once you’ve measured the fencing area and calculated the total linear feet, you can estimate the cost of materials for the project. Knowing the perimeter of the fence helps you determine how many materials you’ll need to complete the job.

For example, let’s assume the fencing area is 200 linear feet, and each panel covers 8 feet. Divide 200 by 8 to see that you’ll need 25 panels.

Here’s a simple formula to guide you:

Number of panels = total linear feet ÷ panel length

Next, list all the materials required for the fence, including posts, rails, screws, or nails. Don’t forget extras like concrete for setting posts or decorative details like gate hardware or post caps. 

For a wood fence, you might need 25 panels, 26 posts (one for each panel plus one extra), and enough concrete to secure each post.

If the overall cost for all the job materials is $2,500, break it down by type so you can easily explain it to your client and keep track of expenses.

Pro Tip: Remember to factor in the fence height for your posts. About 30% of your posts will be buried in the ground.

4. Estimate labor costs

Now that you know how many materials you’ll need, you can determine how many hours/employees it will take to complete the installation.

Here’s how you can figure out your labor cost:

• Multiply the number of hours needed to complete the job by the number of employees needed on the job. These are your labor hours.
• Then, calculate your hourly labor cost. This can be employee wages, taxes, worker’s compensation, and any other employee-related expenses. 20% is a reliable markup for an hourly labor cost if you’re unsure.
• Multiply the labor hours by the labor cost to get your labor cost.

For example, let’s say a job requires three workers for 20 hours each. And your hourly labor cost is $25 per worker, so the total labor cost would be:

3 workers x 20 hours x $25/hour = $1,500

Not sure how many workers you’ll need? Or how long the project will take? Think back on past jobs with similar requirements. Consider how many team members you needed and how long the job took.

Keeping track of this information for future reference is key. Using tools like fence job management software can help you review work history, time tracking, and notes to make estimating labor easier.

5. Calculate your overhead costs

Your overhead costs include indirect and direct expenses like:

• Accounting
• Uniforms
• Office rent
• Insurance for fencing tools
• Fence business software like Jobber

That’s everything that helps you keep the lights on in the back end of your fence company. You’ll want to incorporate your overhead into your job pricing to make sure you’re covering these costs and staying profitable.

Here’s how to calculate your overhead:

• Add up your overhead costs for a specific period. For example, let’s say your monthly overhead total is $1,400.
• Calculate your total direct costs. For example, add up your material costs ($2,500) and labor costs ($1,500) to get $4,000 in direct costs.
• Determine your overhead rate. Divide your overhead costs by your direct costs: $1,400 ÷ $4,000 = 0.35
• Convert your overhead rate to a percentage. Multiply 0.35 by 100 to get 35%. This means you spend 35% of your direct costs on overhead.

By including this overhead percentage in your job pricing, you cover all costs and remain profitable. For every $1 in direct costs, you’d need to add $0.35 to account for overhead.

6. Calculate your profit margins

Your margin is your net sales revenue minus labor, material, and overhead costs. The higher the profit margin, the more money your business retains.

You’ll need your profit margin to reinvest in your business and employees.

Here’s how to calculate your profit margin and set prices that achieve it:

• Add up your direct costs. For example, your material costs ($2,500), plus your labor costs ($1,500) equals $4,000.
• Include your overhead costs. If your overhead is 35% of direct costs, you’ll multiply $4,000 by 0.35 to get $1,400. 
• Calculate the total costs. $4,000 (direct costs) + $1,400 (overhead) = $5,400.
• Determine your desired profit margin. If you’re setting a 20% margin, calculate the profit you want: $5,400 x 0.20 = $1,080.

By following this method, you can adjust your pricing to ensure you meet your desired margins while covering all costs.

7. Tally it up

Finally, you can add up all your costs, including your material, labor, and overhead. And factor in your profit margin.

Fence installation cost = (Material Costs + Labor Costs + Overhead Costs) + Desired Profit Margin

Example:

• Material costs: $2,500
• Labor costs: $1,500
• Overhead costs: 35% of direct costs = (2,500 + 1,500) x 0.35 = $1,400
• Desired profit margin: 20% = (2,500 + 1,500 + 1,400) x 0.20 = $1,080

Fence installation cost = $2,500 + $1,500 + $1,400 + $1,080 = $6,480

8. Create a fencing quote

A quote shows your client the cost and pricing breakdown for their fencing project before they agree to hire you.

Your fencing quote should include:

• Your business name and logo
• Your business contact information, including email and phone number
• Your client’s name and contact details
• A detailed breakdown of the fencing services you’ll be providing, including the type of materials, labor, and costs
• The total cost for the project, including taxes
• How long the quote is valid for
• Your terms and conditions (e.g., deposit amount, payment terms, or warranty)

You can create your quote by hand, use a fencing estimate template, or use quoting software like Jobber.

With quoting software, your quotes instantly look more professional. You can even suggest optional services, like different fencing materials or add-ons. Your customers can then choose what they want directly on the quote and approve the updated total.

Fence job pricing best practices

Pricing fencing jobs accurately is essential to running a profitable business. By following these best practices, you can improve your pricing strategy and avoid costly mistakes.

Double-check your math

Material estimates based on measurements are particularly important when you’re pricing a fencing job. At the end of the day, much of your cost is dependent on the materials needed.

Double-check your materials and triple-check your measurements. This will help you avoid extra material trips and save you money in the long run.

Next, confirm your numbers when you’re calculating your labor cost, overhead, and materials. This is where you can catch any mistakes you might have made.

You don’t want to go back to your customer with a new bid because you’ve incorrectly calculated the cost.

Track your costs

Keeping track of project costs and expenses is one of the best ways to refine your pricing strategy over time.

• Record material costs, labor hours, and overhead expenses for every job.
• Use this data to identify patterns and improve your accuracy in future bids.
• Create a library of past jobs for reference.

Factor in hidden costs

Don’t overlook the hidden costs that come with fencing jobs. These can significantly impact your profitability if you don’t account for them.

• The likelihood of removing debris, leveling the ground, or digging holes.
• Some areas require permits for fence installation, which you should account for upfront.
• The costs of transporting materials to the job site.

Consider competitor pricing

Understanding the pricing trends in your area helps you stay competitive without undervaluing your services.

Research what other fencing contractors in your service area charge for similar jobs. Set your prices to reflect your experience, quality, and unique offerings.

When to adjust your fencing services pricing

A straightforward pricing strategy ensures you’re not spending hours coming up with bids for every job.

As you get better at bidding and pricing fencing jobs, you’ll have to reassess your strategy often. Take notes when you’re on job sites and organize them so you use them as a reference for the next job.

Multiple things that can impact your pricing, like:

• The economy: Inflation impacts the cost of doing business, which is a major factor you’ll have to account for when setting your prices.
• Wage expectations: The hourly wage rate changes consistently. Keep this in mind when you revisit your strategy regularly.
• Competition: As market rates change, you need to change with them.
• Availability of materials: Some materials might require a special order, and some might be sold out.

If you notice that your time estimates are consistently wrong, consider what might be missing. Consider setup time, material handling and pickup, how long it takes to lay out the job, and clean-up time.

Your job notes and records will be a huge resource to help you perfect your pricing to see what was successful and what wasn’t.