The fastest way to go broke in water restoration is to win every job because you’re the cheapest. Cash jobs, where the customer pays you directly instead of insurance, are where beginners lowball the most. Here’s how to price them so you actually make money.

Step 1: Know your real costs

Before you can price a job, you need to know what it costs you. Most beginners forget half of these:

• Equipment: rental cost per day, or what each owned unit costs you to keep running.
• Labor: your time and any subcontractors, including every daily monitoring visit.
• Materials: plastic, bags, antimicrobial, protective gear.
• Driving: fuel and time for daily trips.
• Overhead: insurance, phone, software, marketing, your truck.
• Disposal: hauling away wet drywall, carpet and pad.

Step 2: Price the job in parts

Break every estimate into the same pieces: emergency service call, extraction, removal of damaged materials, equipment per unit per day, daily monitoring, antimicrobial treatment, and disposal. Pricing in parts keeps you from forgetting things, and it helps the customer understand what they’re paying for.

Many contractors use insurance-industry pricing, like Xactimate line items, as a reference point for cash jobs too. Whether you charge the same, a bit less, or something in between is your call. Just know where the market is.

Step 3: Add profit on purpose

Profit isn’t what’s left over. It’s a line you plan for. If your price only covers costs, every surprise, like an extra drying day or a hidden wet wall, comes out of your pocket.

Step 4: Put it in writing before you start

A signed work authorization with the scope, the price or pricing method, payment terms, and what happens if you find more damage. Most disputes start because something was only said out loud.

Step 5: Collect on time

Cash jobs should be paid fast. Many companies take a deposit to start and collect the balance when drying is confirmed. Decide your terms and explain them on the first call.

When the customer says it’s too much

Walk them through the line items and the readings. Show what happens if the water isn’t dried right: mold, a bigger repair, a bigger bill. You can adjust scope, but don’t cut your price to the point the job loses money. A cheap job done wrong costs everyone more.

The 6-Figure Launchpad includes the Cash Jobs Only System bonus and estimate templates, built from 5,000+ water jobs. Also see what makes restoration profitable.

General business information, not financial advice. Pricing varies by market.