Service-business guides

How to price a service job in Nigeria: labour, materials and transport

Build a clearer service quote by listing labour, materials, transport and overhead before choosing a price, with a fictional naira example.

By ReceiptPro NG Editorial · Published

A service price should explain the work and the costs behind it. If a quote includes only materials, the owner may forget labour, transport, revisions or time spent travelling to a customer. A short costing sheet helps reveal those costs before the price is sent.

Cost each part of the job

For each service, note the scope, estimated hours, labour cost, materials, travel and other direct costs. Add a reasonable share of operating costs if you use one. Separate optional extras from the agreed work so the customer can see what is included.

A fictional naira example

Imagine a technician quotes for a router installation and staff setup:

  • Materials and cable: ₦25,000.
  • Labour: 16 hours at an internal planning rate of ₦2,500 per hour = ₦40,000.
  • Transport: ₦6,000.
  • Allocated operating cost for the job: ₦4,000.
  • Example cost base: ₦75,000.

If the owner wants to test a 30% gross margin assumption, the price before any separately applicable charge would be ₦75,000 ÷ 0.70 = ₦107,142.86. This is a calculation example, not a recommended rate or a promise that the market will accept that price. The owner should compare the scope, skill, timeline and customer expectations before deciding.

Do not call a 30% markup the same thing as a 30% margin. The markup and margin example shows the difference. For jobs with uncertain parts or travel, state what is included and how extra work will be approved before starting.

Present the quote clearly

Describe the job in itemised lines, give a reference and issue date, state the proposed total and explain when it is valid. If work depends on approval or a deposit, identify the document as a quotation or proforma and agree the payment stages. Do not describe a proposal as a paid receipt.

Once the customer approves, keep the approved scope and any later change distinguishable. ReceiptPro supports service items and customer invoices; check the current workflow for the document and payment options available on your plan. See the service-deposit recordkeeping guide and proforma invoice guide before using a quote for a job that has not been accepted.

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