Are You Quoting Below Break-Even? How Just Send It AI Checks Your Rates Before You Send
Winning the job means nothing if the rate behind it does not cover your costs.
Quick answer: your break-even rate is what you must charge per billable hour to cover your business costs and pay yourself. Work it out from three numbers: target monthly take-home pay, billable hours per week and total monthly business costs. Just Send It AI asks for exactly these in its Business Cost Calculator, and flags your rate as Below break-even or Below recommended when it is too low.
Being busy is not the same as being profitable. A full diary at the wrong rate just means working harder to lose money slower.
The three numbers that set your rate
- Target monthly take-home pay: what you actually want to earn.
- Billable hours per week: hours on tools only. Most sole traders bill 25 to 32, not 40, because quoting, driving, buying materials and admin eat the rest.
- Total monthly business costs: vehicle, fuel, insurance, tools, phone, software and so on.
Divide the money you need by the hours you can actually bill. The answer is usually higher than the rate many electricians quote by habit.
Why tradies end up below break-even
- Pricing against the competitor down the road instead of your own costs.
- Counting 40 billable hours when the real number is far lower.
- Leaving out irregular costs like insurance renewals, licences and tool replacement.
- Never revisiting the rate while fuel, insurance and materials keep rising.
How JSI checks your rate
JSI does not price your quotes from a guessed industry average if it can help it. Your rate comes from your own numbers.
- Business Cost Calculator: enter your take-home target, billable hours and costs and JSI works out your rates. You can fine-tune everything later.
- Rate health: your profile shows a warning if your rate is Below recommended or Below break-even, with a shortcut to run the calculator.
- Quick rate setup before sending: if a quote is priced on estimated rates rather than your own, JSI stops you at send. You can run a three-question setup, see your current price next to your real price, and update the quote to your real price. Or you confirm you understand the quote uses estimated rates.
That last step matters. It makes the choice visible instead of letting an underpriced quote slip out unnoticed.
What to do if your rate is too low
Raise it for new quotes first. Existing clients can be moved over at a set date with notice. Explain value with clear, itemised, fast quotes rather than apologising for price. Clients who leave over a fair rate were often the ones costing you money.
The useful next step
Run the numbers once, honestly, with your real billable hours. If the result surprises you, that is the point.
Frequently asked questions
How do I calculate my break-even rate as an electrician?
Add your monthly business costs to your target take-home pay, then divide by your realistic monthly billable hours. Use hours on tools only, not total hours worked.
How many billable hours does a sole trader electrician work?
Many sole traders bill around 25 to 32 hours per week. Quoting, travel, purchasing and admin take up the rest of the working week.
What does Below break-even mean in Just Send It AI?
It is a rate health warning. Your current rate does not cover the costs and pay you entered in the Business Cost Calculator.
Will JSI send a quote priced on estimated rates?
Only after you choose. At send, JSI offers a quick rate setup or asks you to confirm you understand the quote is priced on estimated rates, not your own.