pricing and invoicing

Pricing, quoting and invoicing habits that lose you money

Most of the money a small business loses is lost before the invoice is paid: in the quote, in the price, in the extra work nobody billed for. Check which of these habits are yours.

Read the headings first. If one sounds like you, tick the signs underneath that fit your own business. Recognising the problem is the first step, and for some of these it is most of the work.

I underquoted and now I am doing the job at a loss.

Is this you?

Why it happens

Quotes get built from memory under time pressure, so contingency and margin are the first things left out.

I send invoices late, sometimes weeks after the work.

Is this you?

Why it happens

Invoicing feels like admin that can wait, and every day it waits is a day added to when you get paid.

My invoices get queried or disputed.

Is this you?

Why it happens

An invoice that does not show what was done, when and at what rate leaves the client to fill the gaps with doubt.

I have not raised my prices in years.

Is this you?

Why it happens

Raising prices means a conversation you expect to go badly, so the price stays where it was while everything around it moves.

I give discounts to win work and then resent the job.

Is this you?

Why it happens

A discount feels like the safest way to win, and there is no rule for when to hold the price.

Read next

Guide coming soon.

I do extra work for free because I do not want to ask.

Is this you?

Why it happens

The scope was never written down, so there is no line to point at when a request goes past it.

Quotes go out and I never hear back.

Is this you?

Why it happens

A quote is sent and treated as finished, when for the client it is one of several they are weighing up.

I charge by the hour and hate it.

Is this you?

Why it happens

Hourly billing is the easy default, and it ties what you earn to your time rather than to what the work is worth to the client.

Is this quote fair? I do not want to undercharge, but I do not want to scare them off.

Is this you?

Why it happens

The price starts from a guess at what the client will accept, so there is no cost underneath it to stand on when you send the quote.

My terms say there is a late fee, but I have never actually charged one.

Is this you?

Why it happens

Charging it feels like it could cost you the client, so the fee stays in the small print, and a fee that is never charged gives nobody a reason to pay on time.

Check the price before the next quote goes out

Put your real costs and your price into the calculator and see the margin that is actually left. If invoices going out late is the leak, Billbooks turns an approved quote into an invoice in one click, so it can go out the day the job ends.

Check your margin

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