How to Calculate True Job Profit as a Sole Trader Tradesperson

"I quoted £3,000, the materials cost about £1,000, so I made £2,000." This is the mental arithmetic many sole traders use. It is also completely wrong, and it's the reason many tradespeople work 60-hour weeks but struggle to save money.

The Hidden Costs of a Job

To find your true job profit (Profit & Loss / P&L), you need to subtract far more than just the initial merchant invoice from your quoted price. You must account for:

• Secondary Material Runs: The extra screws, adhesive, and parts you bought midway through the job.
• Subcontractor Labor: The day rate you paid the laborer to help you carry materials up three flights of stairs.
• Equipment Hire: Scaffold towers, skip hire, specialist drills, or a digger.
• Vehicle Expenses: The fuel and wear-and-tear (mileage) used specifically to travel to the site and the merchant for this job.
• Wastage: The tiles you broke, or the paint that spilled.

The True Profit Formula

If you quoted £3,000, and initial materials were £1,000, but you spent £150 on extra materials, £100 on skip hire, £200 on a laborer, and £50 on mileage, your true expenses are £1,500. Your true profit is £1,500—a full £500 less than the "mental math" estimate.

Why Tracking P&L per Job Matters

• Better Quoting: When you know you consistently lose 15% margin to "hidden costs" on bathroom fits, you can adjust your next bathroom quote to reflect reality.
• Identify Unprofitable Work: You might discover that small maintenance jobs are highly profitable per hour, while large extensions drain your cash flow.

Automate the Math

VanLog gives you a real-time Profit & Loss ledger for every single job. As you add receipts via the AI scanner, log mileage, and add labor expenses, VanLog subtracts it from your quoted amount. You see a live progress bar of your actual profit margin, letting you know exactly where you stand before the job is even finished.