It’s time to STOP asking: ‘What’s the going rate?’
Hands up who’s asked “what’s the going rate?”
We get it at least once a week. It comes at us from chippies right around the country, young and old: everyone, at some point, seems to be chasing this mythical figure, a definitive answer that will end their worries and start making them money.
BUT the fact is, there are some huge problems with the question, the answers and what you want do with them.
The question needs to change from “what is THE going rate?” to “what are MY going rates?”, and when it does, every single chippy stands to benefit.
There’s just no shortcut to understanding your own costs and capabilities, and arriving at the correct charge out rate FOR YOU. One chippies’ costs to do a piece of work might be completely different to yours: if you go with his going rate and he’s faster or more experienced, you’re putting yourself in a situation where you have to sacrifice, and the usual areas to get hit are quality, safety, and most commonly, your profit.
What’s more, if you’re starting at “the going rate” and working backwards (trying to get your foot in the door with a new client perhaps or you might just be starting out), you’re not only setting yourself up for hardship and possibly failure, but you’re playing a part in keeping rates low across the board. With a better collective understanding of what’s going on, and the knowledge of how we can each play our part in fixing it (and make more money as a result) we can begin to break this cycle as a trade and benefit all.
It all starts with two easy steps:
1. Know your costs
2. Set your OWN going rates which adequately account for; costs, earnings and profit
And, here’s a little secret for those of you who might not already be in the know…
Your going rate is not and need not be limited to a single figure! What’s good for one scenario might not be good for another so you might (and should) consider having different rates allocated accordingly. Regular review of your rates and outcomes from completed jobs is critical and adjustments must be made if and as required.
If you’re a CA member and you want some help in getting to your own “going rate”, not only have we got some new services coming soon that you’re gonna love, but mid- and top-level members have access to dedicated, experienced Trades Advisors who can help – get in touch and ask ( but please – ask the right question!!) If you’re not a member yet – click here and get on to it.