I was waiting for that one. You are correct with that. However, whatever you may come up with for what you feel should be your profit margin may be too high or low based on the average for your area. This is why you must know what the going rates are. The cost of doing bisiness in a geographic location is relatively the same for a comperable size contractor. Let's say contractors A, B, and C are getting say $75.00 per hour for a licensed guy and contractor D (maybe you) is only charging $65.00. Wouldn't you want that additonal $10 bucks every hour? I would. Simply put figure out what you need to make your business profitable and then charge as much as the market will bear. The only way to know what the market is, is to find out what others are charging. It has worked for me for ten years.
