A Rip Off, or what?
- May 18
- 5 min read
Understanding trade pricing can help smooth the way....or not. But here's some helpful info to have up your sleeve.
I've produced a number of resources about this topic, including:
Successfully working with tradies (talking trade quotes)
A Cautionary Tale (hello due diligence)
and extensively in The Reno e-Guide (where the above image comes from)
See the She Bangs blog for other topics related to the money bit and hiring trades.
And yet, finding a competitively priced quote can seem elusive. And sometimes I hear stories of negative experiences with tradies. Geez, late last year even my owners corp got stung.
It's an interesting time in the building sector because traditionally it is recommended people get 3 quotes before choosing a contractor. But, recently tradies have started charging for quotes, so it can get expensive before anyone even lifts a tool!
Where does that leave you?
I was recently privy to a complaint by someone needing a plumber who was quoted a $250 call out fee to quote. Her totally legitimate concern was the job itself was worth about $10K, and that even if it gets deducted off your invoice, there is an in-built assumption you'll be going with that business. What about the cost of the other quotes you get as part of your due diligence?
On the other hand, tradies say (and it's true) that quoting isn't really 'free' - it costs them time and real expenses (petrol, lost wages etc) and they can't afford to "work for free". And that is actually fair, in my opinion.
I used to be a travel agent, and we often had people come in for complex itinerary quotes only to go online and book it themselves after you'd done all the work to research and prepare it for them. As an industry, we grappled with how to get paid for the valuable service we were providing when people ultimately booked it themselves. It was sometimes cheaper for them, for sure, because the cost of the itinerary planning service (which they absolutely needed and benefited from) was ultimately not paid by anyone. Free labour.
I don't know the right answer; I can just see both sides. The way I tackled this for She Bangs was to do a free video consultation, and because my business model is personable and often more of a project partnership, my clients do some of the labour themselves - measuring, choosing materials, purchasing and so on. But from the beginning, I've had a fee if you need me to come onsite for a home visit. It's just a necessary reality that I need to be compensated, especially because I charge hourly and only for the time on the job...
not the admin I do and my comprehensive client correspondence
not this newsletter, or blogs, or free resources
not the brain picking and ad hoc guidance I give people – many of whom never actually book my services
or Bang! Club
not my hours spent learning my skills and attending industry events to boost my knowledge
nor shopping (and returning) at the hardware store, or buying tools,
certainly not packing my van, travel time, nor any prep at all.
So I try to build in some of those costs into my hourly rates, but I still don't make an income that most people would feel is worthwhile.
Most trades charge per job (not hourly like me) and they can build in some of these invisible costs, as well as their overheads. Some though are dodgy and try to tack things on later to increase the agreed upon price - and that's just not on if you ask me.
These stories are why it is imperative to understand exactly what is included in the quoted price, and what is not. Hidden costs and extras can add up. Watch out for:
GST - this one is a biggie. They must state if it's excluded, but even I've been caught out before and had 10% added because they conveniently 'forgot' to mention.
Approval or Permit Fees - in my opinion if they’re mandatory, they should form part of the quote.
Written reports, drawings and footage - even if you're hiring them to give you advice (eg: checking moisture or structural surveys), or do design work (eg: an architectural plan), they will charge you extra for the documents. Madness! We had to pay almost $2k extra for the structural engineer to commit their findings to paper. Similarly, you may hire someone to do an inspection but they may not provide the footage or photos you’ve essentially paid for, meaning you can’t take it to another contractor to quote on.
Compliance Certificates - in fact, they're kinda mandatory to supply, and should be included in the upfront quote if they want to cover the cost of it, but either way, you're paying.
Exclusions – sometimes you may make a reasonable assumption about inclusions, but you need to closely examine noted exclusions (and sometimes omissions – what’s not mentioned?). An estimate is not a quote, and a quote should ultimately be inclusive of all reasonable foreseeable costs (unlike this one when the plumber stated the quoted price was subject to a site inspection!)
In any case, always GET A PROPOSAL or QUOTE IN WRITING!!
However, sometimes things do still occur that seem to be a bait & switch. I recently posted about a client of mine who chose not to pay me for my time – completely ignoring the legal obligation to do so once T&Cs had been outlined in advance and agreed. Yeah, that was uncool. But, someone responded with her own experience on the flip side – she’d agreed to an all-inclusive price and job outline, only to have cost escalations she didn’t even ask for, let alone agree to!
What do you do then? You need to lean in pretty heavily to terms & conditions agreed, as well as addressing things early on if they’re not going to plan. You do have rights as a customer, most notably under the Australian Consumer Law (ACL). Reach out to your state-based consumer affairs if attempts to resolve the dispute with your tradie hasn’t yielded a result.
As for being a rip off, for what it’s worth, my opinion is to use these insights into how the industry works, apply a little understanding that people need to earn a living, apply a critical lens to the quote you receive, and ask relevant questions to ensure you're making an informed choice. Transparency, for me, is the key thing in any business relationship. One built on trust absolutely demands it.
Sunlight is the best disinfectant!
