How to Price Per Drop vs Hourly for Structured Cabling

Pricing structured cabling work is one of the first business decisions that trips up new contractors. Per-drop and hourly both work, but in different situations.

When Per-Drop Pricing Works

Per-drop pricing works best on new construction and standard office buildouts where the scope is predictable. You know the building, you know the pathway, you know the drop count. Price per drop, multiply, add your materials and overhead, and you have a bid.

The advantage is simplicity. The customer understands what they are paying, and you can estimate profit before the job starts. Typical per-drop rates vary by market, but the principle is the same: your rate needs to cover cable, connectors, labor, overhead, and margin.

When Hourly Makes More Sense

Retrofit work, troubleshooting, and jobs with unknown conditions are better billed hourly or T&M (time and materials). If you cannot see the pathway until you open the ceiling, per-drop pricing is a gamble. One difficult pull through a packed ceiling can eat your margin on the entire job.

Hourly also works for small jobs where mobilization cost is a significant percentage of the total. A 4-drop job priced per-drop might not cover your travel and setup time.

The Hybrid Approach

Some contractors price per-drop for the cable runs and hourly for termination, testing, and labeling. This protects you on the labor-intensive finish work while keeping the bid simple for the customer on the bulk of the job.

The Bottom Line

Per-drop for predictable scope, hourly for unknowns. Know which one protects your margin before you send the quote.

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