How to Price a Flooring Job

1. Understand the scope of work

To determine the most accurate pricing for your flooring services, you’ll need to clearly understand exactly what the work entails. Here are a few key questions to help you assess the project:

• Does the client have any special requests? Be sure to ask if the client wants any features like custom patterns or borders, which may require additional skill and time.
• Where’s the job located? If the job site is far from your office or base of operations, you’ll need to account for extra travel time and fuel costs in your pricing.
• How big is the space? Measure the entire area where the flooring will be installed. Accurate measurements ensure you order the right amount of materials and help prevent under- or overcharging.
• What’s the condition of the flooring? Check if the existing flooring needs to be removed or if any subfloor issues like damage or unevenness could add time and labor to the job.
• Are there any accessibility issues? If the job site has tight spaces or safety hazards, it could take longer to complete the work. This can affect your labor costs.
• Is there a deadline? If the client needs the job done with a quick turnaround, you may need to hire additional help or work overtime. This can increase the total price.
• What type of flooring materials are required? The cost of materials can vary greatly depending on the client’s preferences. For example, luxury vinyl plank costs less than hardwood or natural stone, but each comes with different labor requirements that could affect pricing.

2. Pick the right pricing strategy

When pricing flooring jobs, choosing the right strategy ensures that you cover your costs and make a profit.

There are two main approaches: fixed rate and hourly rate.

Fixed rate

Offering a flat or fixed rate can seem appealing because it gives your client a clear upfront cost. For example, you might give a set price for installation cost for installing hardwood in a living room.

Some contractors use a fixed rate, but it can be risky. If the job takes longer than expected, you’ll make less money since you’re working beyond the scope of the job.

Hourly rate

An hourly rate is a more flexible, accurate way to calculate flooring cost. With this approach, you charge for every hour you spend on the job.

This ensures that you’re compensated for the time if a project takes longer due to an unforeseen issue. You’ll also better understand your expenses, making it easier to adjust your rates if needed.

According to Salary.com, the average hourly wage for a flooring installer in the United States is $24 per hour. Note: these rates can vary based on factors like location, experience level, and project complexity.

In the case of $24 per hour, this is the rate you’d pay your employees. When charging customers, you’d mark up that rate to cover your overhead and operating expenses.

For handymen and flooring installers, we encourage you to use an hourly rate when learning how to bid flooring jobs. It’s more transparent for you and the client, allowing you to track time and profit more easily.

3. Calculate how much the job costs to complete

Before you set any flooring service prices, you need to determine how much your costs are so you can charge enough to stay afloat. This includes what you spend on materials and your business expenses.

Material costs

First, figure out how much you’ll spend on materials necessary for the job by doing the following:

• Measure the room’s size in square feet.
• Find out how much the flooring costs per square foot.
• Add extra for waste (often 10% more).
• Account for the costs of other items like underlayment, glue, and trim.

Let’s look at an example for a 400-square-foot room using hardwood that costs $5 per square foot:

• Flooring: 400 x $5 = $2,000
• Extra for waste (10%): $2,000 x 0.10 = $200
• Underlayment: 400 x $0.50 = $150
• Glue and trim: $250

So, the total cost of materials for the job would be $2,600. 

Business overhead

The second part is business overhead, which is made up of the costs necessary to run your flooring business. These include include:

• How much you pay yourself or workers
• Tool and vehicle costs
• Insurance and licenses
• Advertising and office work

Here’s an example, assuming a $41 hourly rate (illustrated in the following sections):

• Time spent doing the job: 20 hours x $41 per hour = $820
• Wear on tools: $100
• Insurance and licenses: $150
• Office work: 3 hours x $41 per hour = $123

These business costs add up to $1,193.

Pro tip: If you aren’t sure how much your business costs are, start tracking your expenses now so that you can begin to get an idea of how much your monthly overhead is.

Putting it all together

To get your total job cost, use this simple math: 

Total job cost = Material costs + business overhead 

So, using our examples:

$2,600 in materials + $1,193 in business overhead = $3,793 total job cost

4. Calculate your hourly flooring job rate

Now that you know how much you need to make to cover your business expenses, you can calculate a base hourly rate. This is the amount that you need to make to cover your costs.

Start by adding up all your expenses for an average month. Let’s say you spend an average of $5,000 a month on expenses.

Next, figure out how many hours you work (or plan to work) each month, on average. At 35 hours a week, that would be 140 hours a month.

Pro tip: If you aren’t sure what your monthly billable hours are, you can start tracking your time on the job to get an idea of what you work each month.

Now, here comes the math.

Take your total monthly expenses and divide them by your total monthly hours. Here’s our example:

$5,000 / 140 = $35.70 per hour

That’s how much you need to make per hour just to cover your business expenses. 

So, in our example, we would need to make $35.70/hour at 140 hours per month to cover costs. But you don’t want to only cover your costs; you want to make a profit as well.

5. Add your profit margin to the job cost

Profit is the amount that you make on top of your expenses. It’s what you use to grow your flooring business, weather tough seasons, and cover unexpected issues with equipment or materials.

One of the best ways to calculate profit to add onto your hourly rate is to look at what your competitors are charging. When reviewing other flooring companies pricing, make sure they’re:

• Local: Businesses outside of your city or town may have higher or lower rates than your own.
• Similar: Competitors that offer different services or that specialize in certain flooring jobs will price based on those things. Choose competitors whose services are comparable to yours.
• Targeting the same clients: If you serve residential clients, don’t look to competitors who focus on commercial jobs. Pricing between residential and commercial jobs can vary a lot.
• Legitimate: Base your rates on legitimate, professional flooring businesses in your community. Try not to use odd job ads on sites like Craig’s List to set rates.

Profit margins for flooring installation businesses are typically between 10% and 20%. Adding a 15% profit margin, for example, to your hourly rate means you’ll cover any surprises and earn enough to keep the business growing.

So, if $35.70 per hour ensures that you cover all expenses, you’ll want to add that 15% profit margin on top.

$35.70 + ($35.70 x 0.15) = $41.05 per hour

A $41.05 hourly rate helps ensure you’re not just breaking even but making money on each job, too. The average cost for flooring installation in the United States is $2,950. But that can change significantly depending on the size of the job, material, location, and flooring expert or handyman who’s doing the job.

6. Offer discounts to help win flooring jobs

Strategically offering discounts can be a powerful way to close flooring deals and boost your profitability. The key is to offer them in a way that benefits both you and your clients.

Instead of giving blanket discounts, use them as incentives to persuade customers to agree to the job. You can also offer them to help you win larger jobs or upsells. 

For example, rather than offering 20% off any service, offer 15% off specific materials like laminate or tile for projects over a certain square footage. You could also offer a discounted add-on service, like sanding or applying a finish, when clients meet a minimum job size.

By structuring your discounts this way, you encourage clients to commit to bigger projects while still protecting your profit margins.

7. Create a flooring quote

A quote is a professional document that shows your client the cost and pricing breakdown for their flooring project before they agree to hire you.

Your flooring 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 flooring services you’ll be providing, including the type of flooring 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 flooring estimate template, or use quoting software like Jobber.

With quoting software, you can make your quotes look more professional and even suggest optional services, like different flooring materials or add-ons. Your customers can then choose what they want directly on the quote and approve the updated total. This makes the process more interactive and easier for both you and your client.

Pricing flooring jobs properly takes a lot of work, but it’ll pay off in the end when your bills are covered, and you have the money you need to grow your flooring business.

Many business owners make the mistake of jumping in headfirst and setting prices before doing their research. While it may be tempting to forego the calculations and copy what another business is charging, this strategy won’t work out long-term.

Taking the time to price your flooring jobs carefully—and with industry knowledge to back you up—can be what keeps your business going strong while others tap out.

Originally published in December 2020. Last updated on September 23, 2024.