List what you sell
Go through your last 50 jobs and list every distinct thing you charged for. Group them into:
- Fixed-price items: a standard service at a set price.
- Rates: labour per hour or per day.
- Materials: parts and products, ideally with your cost and markup.
- Fees: call-outs, travel, disposal, after-hours loadings.
- Packages: common combinations sold together.
Price for margin, not just cost
For each item, record the cost to you and the price to the customer. If you add a markup on materials, apply it consistently. Review prices at least once a year and whenever supplier costs change.
Set the tax code once
Mark each item as including GST, excluding GST or GST-free. Getting it right once means every quote is right. Our GST guide explains the rules.
Pricing labour properly
Many service businesses underprice labour because they only count wages. Your hourly rate also needs to cover superannuation, leave, insurance, vehicles, tools, software, travel time, quoting time and profit. Work out your true cost per productive hour first, then set your rate above it.
Productive hours are fewer than paid hours. If a technician is paid for 38 hours but only 28 are billable, your rate has to recover the cost of all 38 from those 28.
Packages and good-better-best options
Packages make buying easier. A cleaning business might offer standard, deep and end-of-lease cleans. An IT provider might offer basic, standard and premium support. Price each package for a healthy margin, describe the differences in plain words and let customers choose. Most will pick the middle option.
When to review prices
- At least once a year
- When supplier prices change significantly
- When wages or award rates change
- When you find you’re consistently winning every quote, which can mean you’re too cheap
Showing prices to customers
Some businesses publish starting prices on their website; others share them only in quotes. Published prices filter out poor-fit enquiries and build trust, but must be kept current. If you publish prices to consumers, show the total price including GST.
A worked example: an electrician’s price list
| Item | Type | Price excl. GST |
|---|---|---|
| Call-out fee (first 30 minutes) | Fee | $110 |
| Labour, per hour | Rate | $105 |
| After-hours loading | Fee | 50% of labour |
| Install LED downlight (per light) | Fixed | $85 |
| Safety switch installation | Fixed | $420 |
| Test and tag, per item | Fixed | $6 |
These prices are illustrations only. Work out your own from your costs and local market.
Quick checklist
- List every item you charged for in your last 50 jobs.
- Group items into fixed prices, rates, materials, fees and packages.
- Work out your true cost per productive hour before setting labour rates.
- Set the GST treatment on every item.
- Apply a consistent markup to materials.
- Quote from the price list every time.
- Review prices at least once a year.
Use it every time
A price list only helps if quotes are built from it. NovaSoft One’s product and service catalogue stores your items, prices and tax codes, and catalogue pricing handles bundles, recurring terms and agreed pricing for particular companies.
Common questions
Should we include travel in our prices?
Either build it into your rates or charge a clear call-out or travel fee, but be consistent.
How do we price materials?
Record your cost and apply a consistent markup that covers handling, storage and risk.
Do we need a price list if every job is different?
Yes. Even custom work is built from common items and rates.
This guide is general information for Australian businesses, not legal, tax or financial advice. Check anything specific to your situation with a qualified adviser or the relevant government agency.