How Do I Price My Flooring Contractor Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 11
- 3 min read
If you're starting or growing a flooring contractor business, one of the most important questions you'll face is: How do I price my flooring services profitably and competitively? Whether you specialize in hardwood, tile, epoxy, carpet, luxury vinyl plank (LVP), granite, or polishing services, getting your pricing right is essential to winning jobs and staying profitable.
At Wexford Insurance, we work with flooring contractors across the country to help them protect their businesses with tailored flooring contractor insurance. But we also understand that pricing your services correctly is just as critical as having the right coverage.
In this guide, we’ll break down the key components of pricing your flooring services, including labor, materials, overhead, insurance, profit margins, and market rates.
1. Calculate Your Labor Costs
Labor is often the largest expense in a flooring job. To price it accurately:
Estimate hours per job: Consider the type of flooring, square footage, and complexity.
Include wages and benefits: Factor in hourly wages, payroll taxes, and any benefits.
Account for experience: Skilled labor may cost more but can complete jobs faster and with higher quality.
💡 Tip: Use job costing software or spreadsheets to track actual labor hours and refine your estimates over time.
2. Factor in Material Costs
Material costs vary widely depending on the flooring type:
Hardwood and tile tend to be more expensive.
LVP and carpet are more affordable but may require more frequent replacement.
Epoxy and polished concrete involve specialized materials and tools.
Always include:
Waste factor (typically 5–10%)
Delivery fees
Price fluctuations from suppliers
3. Don’t Forget Overhead Expenses
Overhead includes all the costs of running your business that aren’t directly tied to a specific job:
Office rent or home office expenses
Utilities and phone/internet
Marketing and advertising
Software subscriptions
Vehicle maintenance
Divide your monthly overhead by the number of jobs or billable hours to allocate a portion to each project.
4. Include Insurance in Your Pricing
Insurance is essential for protecting your flooring business—and it should be built into your pricing model. At Wexford Insurance, we help flooring contractors get the right coverage, including:
General Liability Insurance – Covers property damage or injuries on the job.
Commercial Auto Insurance – Protects your work vehicles and drivers.
Commercial Property Insurance – Covers your office, warehouse, or tools stored on-site.
Workers’ Compensation Insurance – Required in most states if you have employees.
Tools and Equipment Insurance – Covers stolen, lost, or damaged tools.
5. Add Your Desired Profit Margin
After calculating all your costs, add a profit margin to ensure your business is sustainable. Most flooring contractors aim for a 15–30% profit margin, depending on the market and competition.
6. Research Your Local Market Rates
Check what other flooring contractors in your area are charging. You can:
Visit competitor websites
Use platforms like HomeAdvisor, Thumbtack, or Angi
Ask suppliers or subcontractors for insights
⚠️ Don’t race to the bottom on price—focus on value, quality, and professionalism.
7. Offer Tiered Pricing or Packages
Consider offering different pricing tiers based on:
Flooring material quality
Installation complexity
Warranty length
Add-on services (e.g., baseboard installation, old floor removal)
This gives customers options and helps you upsell premium services.
8. Use Estimating Software
Professional estimating tools can help you:
Generate accurate quotes
Track job costs
Avoid underbidding
Popular options include Jobber, Housecall Pro, and Buildertrend.
Final Thoughts
Pricing your flooring contractor services isn’t just about covering costs—it’s about building a profitable, sustainable business. By factoring in labor, materials, overhead, insurance, and profit margins, you can confidently bid on jobs and grow your company.
And don’t forget—insurance is a key part of your pricing strategy. At Wexford Insurance, we specialize in helping flooring contractors like you get the right coverage at the right price.
👉 Contact us today to protect your business.
