You're Probably Undercharging
When we surveyed 300 Australian tradies about their biggest business regret, #1 was "not charging enough in the early years."
Here's the thing: customers don't choose the cheapest tradie. They choose the one they trust to do the job right. If you're competing on price, you're competing in the wrong arena.
The Psychology of Pricing
Expensive = Quality in customers' minds. A $5,000 quote signals competence. A $3,000 quote for the same job signals "what are they cutting corners on?"
This doesn't mean you should gouge customers. It means you should charge fairly for your expertise, time, and the quality you deliver.
5 Pricing Strategies That Work
1. Anchor High, Then Discount
Instead of quoting $2,000, quote $2,500 and then offer a $500 discount for "booking this week" or "paying on completion."
Customer feels like they got a deal. You get paid what you wanted anyway.
2. Package Options (Good, Better, Best)
Offer three options:
- Basic: The minimum that solves their problem
- Standard: Basic plus extras (better materials, warranty)
- Premium: Full service, best materials, longest warranty
80% of customers choose the middle option. Make sure that's the one you actually want them to pick.
3. Callout Fee + Hourly Rate
Charge a callout fee (e.g., $80-150) plus hourly rate. This:
- Filters out time-wasters
- Ensures you're paid even for short jobs
- Covers your travel time and fuel
Explain it upfront: "There's a $100 callout fee which covers the first 30 minutes, then $90/hour after that."
4. Value-Based Pricing for Big Jobs
For significant projects, price based on value delivered, not time spent.
Example: A new hot water system isn't worth "$X for labour + $Y for parts." It's worth "reliable hot water for the next 15 years." Price accordingly.
5. Annual Price Increases
Raise your prices by 5-10% every year. Your costs increase annually. So should your rates.
Notify existing customers: "G'day, just a heads up that our rates are increasing on [date]. Want to lock in current pricing for any upcoming work?"
How to Communicate Higher Prices
When customers push back on price:
- Don't apologise. You're not overcharging—you're charging fairly.
- Explain the value. "That includes a 2-year warranty on labour, not just parts."
- Stand firm. "I understand. I can recommend someone cheaper if budget's tight, but we stand behind our quality."
Customers who only want the cheapest aren't your customers anyway. Let competitors fight over them.
Red Flags: Customers to Avoid
- "Can you do it cheaper?"
- "My mate said it should only cost X"
- "I'll pay you when I can"
- Wants detailed quote before you've even seen the job
These customers will cost you more in hassle than they're worth. Politely refer them elsewhere.
The Bottom Line
Your skills took years to develop. Your tools cost thousands. Your insurance, rego, and overheads add up. Your time has value.
Price accordingly. Attract customers who value quality over cheapness. Build a business you can sustain for the long term.