What to Charge? A Practical Guide to Pricing Services in New Zealand

Setting prices for your services can feel daunting, especially when you want to attract clients but also make a fair living. In New Zealand’s service sector, pricing is a balancing act that requires knowing your costs, market, and how to communicate value. This guide offers ten practical tips to help Kiwis confidently price their services and grow sustainable businesses.

Here are some tips that you might find interesting:

1. Understand Your Costs Clearly

Before setting any prices, get a full picture of your costs: materials, tools, transport, insurance, time, and ongoing overheads like phone and internet.

Don’t forget to factor in your personal wage expectations, which should cover both your living expenses and the value of your expertise.

Example: A Tauranga gardener calculated costs for fuel, equipment maintenance, and a fair hourly wage before quoting clients, helping avoid undercharging common in the industry.

2. Research Local Market Rates

Check what other service providers in your region charge for similar work. Look at directories like Builderscrack, TradeMe Services, and Yada to gauge common pricing.

Avoid the lowest-price trap; pricing too low can undervalue your work and make clients question quality.

Example: A Wellington plasterer browsed Yada and local trade directories and found an hourly rate range that informed his own fair pricing approach.

3. Consider Different Pricing Models

You don’t have to charge by the hour only. Fixed fees for standard jobs, package pricing, or project-based quotes can offer clarity and ease for clients.

Weirdly enough, some clients prefer knowing the total upfront rather than worrying about the ticking clock.

Example: A Christchurch cleaner offers package deals for weekly or monthly visits, which brings steady income and loyal clients.

4. Factor In Travel And Other Extras

Don’t forget to add reasonable charges for travel, after-hours work, specialized materials, or urgent jobs.

Communicate these extras clearly in your pricing to avoid surprises and build client trust.

Example: An Auckland electrician charges a call-out fee for jobs outside central areas, which is clearly displayed on his Yada profile.

5. Use Yada To Offer Competitive Pricing

With no lead or success fees on Yada, specialists can afford to offer more honest and competitive pricing, keeping quotes fair for clients and fair for themselves.

The platform’s rating system encourages transparency and lets good value shine through.

Example: A Nelson landscaper highlights his competitive quotes and excellent reviews on Yada, turning price into a selling point rather than a barrier.

6. Be Transparent And Clear

Kiwis value honesty, so be upfront about what your prices include and any possible variations.

Clear quotes and easy-to-understand invoices cut down misunderstandings and build long-term trust.

Example: A Dunedin handyman sends detailed written quotes via Yada’s internal chat, which clients appreciate for transparency.

7. Review Prices Regularly

Costs change - materials, fuel, and living expenses go up. Check your prices at least annually to keep pace.

Be confident in adjusting your rates while communicating the reasons positively to existing clients.

Example: A Tauranga painter informs regular clients ahead of winter about a slight rate increase due to paint cost rises, keeping relationships open and honest.

8. Value Your Expertise And Experience

Pricing isn’t just about costs; it’s also about the value you provide. Experienced professionals can command higher rates for quality, reliability, and guarantees.

Think of it as investing in peace of mind for clients who want the job done right the first time.

Example: A Wellington electrical specialist prices higher due to his certifications, warranty offers, and excellent communication, which clients trust.

9. Offer Discounts Carefully

Discounts can attract new clients but avoid regularly undercutting your prices to the point where you erode your value or burn out.

Try targeted discounts for repeat customers, referral incentives, or off-peak deals instead.

Example: An Auckland carpet cleaner offers a 10% discount for referrals that lead to bookings, increasing her client base without cutting basic rates.

10. Communicate Value, Not Just Price

When talking about pricing, focus on what clients get - your skills, reliability, quality products, and service - not just the dollar figure.

Weirdly enough, framing your price as part of the peace of mind or convenience you provide helps clients see it as a smart investment.

Example: A Christchurch gardener emphasizes the long-term garden health and time saved clients enjoy, making her price easier to accept.