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Pricing Your Quotes to Maximise Profits

Last updated: 18th Oct 2019

Almost half of the businesses on ServiceSeeking.com.au use the same hourly rate every time they quote[1]. While this can be an easy way to set your prices, it’s likely you’re leaving money on the table by not testing different price points.

Here are some situations where you can either increase your rates or offer a discount to make maximise your revenue and profits on ServiceSeeking.com.au.


Are you cheaper or more expensive than your competition?

This is pretty easy to work out if you’re active on ServiceSeeking.com.au. In the Analytics page of your ServiceSeeking.com.au account we analyse your quote prices and compare them to what your competitors quoted for the same jobs. Then we show Your Average vs the Market Average.


This business charged $45 per hour vs a market average of $49 in the last 31 day period

This business charged $45 per hour vs a market average of $49 in the last 31 day period


If you’re not active on the site, we also publish pricing guides with national and local price information for most industries.


If you’re cheaper than the competition, raise your rates

If your average prices are below the Market Average why not try raising your rates? $4 per hour on top of your charge out rate should approximately bring in an additional $150 per week.


However, it’s worth keeping in mind that price isn’t always the most important thing for customers. Less than one-third of ServiceSeeking.com.au users say price is their top consideration when choosing a business[2]. Most of them want something else – good communication, reputation, and quality.


Raise prices for urgent jobs

It’s reasonable to charge a higher price for customers who need urgent attention. From your Leads page you can filter for Urgent jobs.

ServiceSeeking job pricing


Raise prices for the top end of town

Customers in wealthy areas usually pay more, and lots of businesses take advantage of this. If you do work in wealthier areas, consider upping your standard prices for those customers.


Offer discounts for locals

Customers naturally want local businesses to cut them a better deal. They expect you to spend less time and effort travelling to the job so spend less servicing them. Giving better prices to locals may also pick up highly profitable word of mouth referrals.


Raise your rates, but offer a discount for on-time payment

You might have noticed your electricity or gas bills show two prices; a lower price for paying on time and a much higher price for paying later.

If you’re having trouble with late payers try lifting your standard rates by 10%, but offer a 10% discount for on-time payment. This can help encourage your customers to pay promptly.


Don’t expect customers to pay cash – but discount when they do

Paying cash is a hassle for most customers even if it’s your preference. Don’t expect customers to know you prefer cash. If you want customers to go to the extra effort of visiting an ATM, let them know in advance, and offer them a better price.
Learn more about how QuickBooks Online can help you hold onto your cash.

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