How Do I Price My Drywall Contracting Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 5, 2025
- 3 min read
Starting a drywall contracting business is an exciting opportunity—but one of the first challenges new contractors face is figuring out how to price their services. Price too low, and you risk losing money. Price too high, and you may scare off potential clients. So how do you strike the right balance?
At Wexford Insurance, we specialize in helping drywall contractors protect their businesses with tailored insurance coverage. But we also understand that pricing your services correctly is just as important as protecting them. In this guide, we’ll walk you through how to price drywall jobs profitably, what costs to consider, and how insurance fits into your pricing strategy.
Why Pricing Matters for Drywall Contractors
Your pricing strategy affects everything—from your ability to win jobs to your long-term profitability. Whether you're bidding on residential remodels or large commercial projects, your prices need to:
Cover your material and labor costs
Account for overhead and insurance
Leave room for a healthy profit margin
Step-by-Step: How to Price Drywall Contracting Services
1. Calculate Material Costs
Start by estimating the materials needed for the job:
Drywall sheets (standard, moisture-resistant, or fire-rated)
Joint compound (mud)
Tape and screws
Corner beads
Sandpaper and primer
Use tools like the Homewyse Drywall Cost Calculator to get accurate estimates based on square footage.
💡 Pro Tip: Always add 10–15% for waste and unexpected material needs.
2. Estimate Labor Costs
Labor is often your biggest expense. To calculate your hourly labor rate:
Decide how much you want to earn weekly
Divide that by your billable hours
Example: If you want to earn $1,000/week and expect 25 billable hours:$1,000 ÷ 25 = $40/hour
Multiply your hourly rate by the estimated hours for the job to get your labor cost.
3. Include Overhead Expenses
Overhead includes all the costs of running your business that aren’t tied to a specific job:
Fuel and vehicle maintenance
Office rent or home office utilities
Business software and tools
Marketing and advertising
Insurance premiums
Use this formula: Annual Overhead ÷ Annual Billable Hours = Hourly Overhead Rate
Add this to your labor rate to ensure you're covering your business expenses.
4. Add a Profit Margin
Once you’ve calculated your total cost (materials + labor + overhead), add a profit margin—typically 15–25%—to ensure your business is sustainable.
5. Choose a Pricing Model
There are three common pricing models for drywall contractors:
Flat-rate pricing: Best for standard jobs with predictable timelines.
Hourly pricing: Ideal for complex or custom work.
Per square foot pricing: Common in commercial drywall work. Rates typically range from $1.50 to $3.00 per sq. ft., depending on finish level and region.
Don’t Forget to Factor in Insurance
Insurance is a critical part of your pricing strategy. It protects your business, satisfies client requirements, and ensures you’re covered in case of accidents or damage.
At Wexford Insurance, we help drywall contractors get the right coverage. Here are five essential policies to include in your cost structure:
Protects against third-party injuries and property damage. Often required by clients before work begins.
Covers vehicles used to transport drywall, tools, and crew members.
Protects your office, warehouse, or storage space from fire, theft, and natural disasters.
Required in most states if you have employees. Covers medical bills and lost wages from job-related injuries.
Covers your gear from theft, damage, or loss—on and off the job site.
Final Thoughts
Pricing your drywall contracting services isn’t just about covering costs—it’s about building a profitable, sustainable business. By understanding your expenses, choosing the right pricing model, and factoring in insurance, you’ll be better prepared to win jobs and grow your company.
Need help getting insured?
Contact Wexford Insurance today to get drywall contractor insurance tailored to your business.