One of the biggest decisions you make on any job is how you charge.
Fixed price or day rate?
Most tradesmen use both — but many don’t fully understand the difference.
And that’s where problems start.
Most pricing problems don’t come from lack of work — they come from how that work is priced.
Because the way you price a job affects:
- Your profit
- Your risk
- Your stress levels
The issue isn’t which one you use — it’s using the wrong one for the wrong job.
What Is a Day Rate?
A day rate is simple:
You charge for your time.
Example:
- £250 per day
- £300 per day
You get paid for:
- The time you work
- Regardless of how long the job takes
This is why understanding what you should actually be charging per day matters
(link to your day rate article)
What Is Fixed Price?
Fixed price means:
You quote one total price for the whole job.
Example:
- £2,500 for a bathroom install
- £1,200 for a rewire
You’re committing to:
- Completing the job
- For that agreed amount
The Key Difference
Day rate = time-based
Fixed price = outcome-based
That difference changes how much you earn — and how much risk you take on.
The Advantages of Day Rate
1. Lower Risk
If the job takes longer:
You still get paid.
You’re protected from:
- Delays
- Unexpected problems
- Scope changes
2. Simpler to Manage
You don’t need to:
- Estimate every detail
- Factor in unknowns
You just charge for your time.
3. Better for Uncertain Work
Day rate works well when:
- The scope isn’t clear
- The job could change
- You’re dealing with unknowns
The Downsides of Day Rate
1. Limited Earnings
You can only earn:
What your time allows
If you’re efficient:
You don’t benefit as much.
2. Customer Resistance
Some customers prefer:
A fixed price upfront
They want certainty.
3. Can Attract the Wrong Customers
Day rate can sometimes lead to:
- Micromanagement
- Questions about time spent
The Advantages of Fixed Price
1. Higher Profit Potential
If you:
- Work efficiently
- Price correctly
You can earn more per day.
2. Better for Experienced Trades
The more experience you have:
The more accurate your pricing becomes
Which increases your margin.
3. Customers Prefer It
Most customers like:
Knowing the total cost upfront
This makes it easier to win jobs.
The Downsides of Fixed Price
1. Higher Risk
If the job goes wrong:
You absorb the cost.
Most tradesmen don’t lose money on fixed price jobs because of the original quote — they lose it on what gets added after.
This is exactly why tradesmen lose money on jobs
2. Scope Creep Becomes a Problem
If you don’t control changes:
Your profit disappears.
how to manage scope creep on jobs
3. Requires Accurate Pricing
If you get it wrong:
You feel it immediately.
This is why learning how to price a job properly is critical
When to Use a Day Rate
Use a day rate when:
- The job scope is unclear
- You expect changes
- It’s small or ongoing work
- You’re dealing with unknown conditions
When to Use Fixed Price
Use fixed price when:
- The job is clearly defined
- You’ve done similar work before
- You can control the scope
- You’re confident in your estimate
The Best Approach (What Most Tradesmen Should Do)
It’s not one or the other.
It’s using both — properly.
For example:
- Fixed price for defined jobs
- Day rate for uncertain work
- Fixed price + extras charged separately
The Biggest Mistake Tradesmen Make
They use fixed price:
Without controlling the job.
Which leads to:
- Underpricing
- Extra work
- Lost profit
This is how jobs start drifting — and why you need to know what to do when a job starts losing money
How to Decide Which to Use
Ask yourself
- Is the scope clear?
- Can I control the work?
- What’s the risk level?
If the answer is:
- Clear + low risk → Fixed price
- Unclear + high risk → Day rate
If you’re unsure — default to protecting your time.
Common Mistakes
1. Fixed pricing uncertain jobs
High risk.
2. Using day rate for everything
Limits earning potential.
3. Not charging for extras
Kills profit.
4. Trying to please the customer
Instead of protecting the job.
Simple Rule to Follow
If you can’t clearly define the job:
Don’t fix the price.
Final Thought
There’s no “best” pricing method.
Only the right one for the job.
Tradesmen who make good money don’t just work harder.
They choose how they price their work — and they protect their profit.
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