Tradies AccountantsTradies Bookkeepers

As a tradie, it’s important to know what hourly rate you should charge to break even and make a profit. Here are some factors to consider when setting up the pricing structure of your trades business.

Firstly, understand your most profitable products and services. Do you know which of your products and services are most profitable in your business? If you analyse what’s working within your trades business, you can further develop that style of work. Find what the most lucrative work is and review your financial data. This important info will help you decide which high-profit work should be targeting more.

You should also check your rates per market segment. It’s good to have a different pricing scale for various market segments like residential customers, commercial, real estate agents, etc. You will understand which market segment is most profitable for you through a job management software. Find out which work has the highest average dollar sale.

Pricing for trade business

Another thing to look at is your pricing structure per customer. You can change your pricing for customers and companies based on average dollar sales. To know the average dollar sale of a real estate agent, print all jobs completed by that agent in a defined timeframe. Divide the dollar value by the number of jobs and if the rate is lower than the rate you should be charging to break even and make profit, you will need to fix this.

Check your competitors. How does your pricing compare with your competitors? Your products and services aren’t the same yes but it’s good to know what’s being charged in the market. You can have a competitor analysis to see if your pricing structure is affordable, average or expensive. You can also ask your customers for their feedback. You can handle your target customers and match up your product and service offerings with the right pricing.

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As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437