Underbidding an LED strip project costs you money. Overbidding loses you the job. The contractors who consistently win profitable LED lighting work build their quotes from a repeatable framework, not from gut feel. Here's that framework.
The 5 Components of an LED Lighting Quote
- Material cost (LED strips, drivers, channels, accessories)
- Labor cost (installation time)
- Markup on materials
- Overhead allocation
- Contingency
Every line item in your quote traces back to one of these five categories. Let's build each one.
1. Material Cost
Start with a complete material list. For a typical LED strip project, the line items are:
| Item | Notes |
|---|---|
| LED strip (by linear foot) | Get actual wattage/ft from spec sheet |
| Power supply / dimmable driver | Sized at 120% of total strip wattage |
| Aluminum channel (by linear foot) | Match channel width to strip width |
| Diffuser lenses | Typically included with channels; verify |
| End caps | Two per channel section |
| Mounting clips and screws | Typically included with channels; verify |
| Solderless connectors | One per junction, plus spares |
| Wire (18 AWG, by linear foot) | Power leads from driver to strip |
| Dimmer switch | If dimmable install; verify protocol match |
Pull pricing directly from your supplier for each line item. Never quote from memory on material costs — prices change and margin errors compound across large projects.
2. Labor Cost
LED strip installations are relatively fast compared to fixture-based lighting, but speed varies with installation complexity. Benchmark labor times:
| Task | Typical Time |
|---|---|
| Simple under-cabinet run (per 8 ft section) | 20–30 min |
| Cove or soffit installation (per 10 ft run) | 30–45 min |
| Custom channel routing (recessed) | 45–90 min per run |
| Multi-zone wiring with dimmer | 60–120 min per zone |
| Stair riser lighting (per flight) | 3–6 hours |
Adjust these based on your crew's experience with LED strip installs. The first few jobs take longer; experienced crews develop a rhythm that cuts these times significantly.
3. Markup on Materials
A standard contractor markup on materials is 20–50%, depending on your market and the complexity of sourcing. LED strips sourced factory-direct at trade pricing leave more room for markup than distributor-sourced product at retail prices.
Do not markup at cost-plus-zero on specialty materials. Your time finding the right product, verifying specs, and managing delivery is real cost. A 25–35% material markup is standard for specialty lighting materials on residential projects.
4. Overhead Allocation
Your overhead — vehicle, insurance, tools, office expenses, marketing — needs to be recovered on every job. Calculate your hourly overhead rate (annual overhead ÷ billable hours) and add it to your labor line item.
Most small lighting contractors find their true loaded labor rate (labor + overhead) is $15–25/hour higher than their direct labor cost. This is often underestimated by contractors who price based on direct labor alone.
5. Contingency
Add 10–15% contingency to every LED strip quote. You will encounter:
- Existing wiring that doesn't cooperate
- Cabinets that aren't level requiring channel adjustment
- Extra connectors needed for unexpected angles
- Strip lengths that don't divide evenly at cut points
Contingency is not profit — it's risk coverage. If the job goes perfectly, the contingency becomes additional margin. If it doesn't, you're protected.
Building the Final Quote
A well-structured LED strip quote looks like this:
Materials (with markup) $___ Labor (hours × loaded rate) $___ Contingency (10–15%) $___ —————————————————————— Total $___
Present the total, not the breakdown, to the client unless they specifically ask. Showing markup percentages invites negotiation on material margins that should be non-negotiable.
What to Include in the Scope of Work
Define clearly what the quote includes and excludes:
- Linear feet of strip covered
- Number of zones and dimmer switches
- Whether power supply is included or client-supplied
- Whether electrical panel work is included
- Cleanup and patch work after installation
- Warranty period on workmanship
Exclusions prevent scope creep. If the client wants additional cabinet sections added after the quote is approved, that's a change order at your quoted rates.
Material Sourcing for Quoted Projects
For consistent, quotable pricing on LED strip materials, work with a factory-direct supplier who offers trade pricing to contractors. Variable material costs from retail suppliers make it impossible to quote accurately.
- Apply for HitLights Professional Partner Program — Trade Pricing
- Request a Project-Specific Quote
- UL Listed LED Strip Lights for Commercial Projects
Updated August 2026 | HitLights — Factory-Direct LED Strip Lighting Since 2010