By Jared Woodbine, Managing Director — Alltech Coatings | Updated March 2026
Most tradies work hard. Really hard. But hard work doesn’t automatically translate into a good income — especially if your pricing is off. And for most tradies, it is.
Here are five pricing mistakes that are quietly bleeding your business dry, and what to do about each one.
1. Not Knowing Your True Cost of Doing Business
Your hourly rate isn’t your profit. It’s your revenue. Big difference.
Most tradies think about their rate like this: “I charge $85/hr, that’s pretty good.” But they haven’t accounted for super (11%), public liability insurance, vehicle costs, tools and equipment, slow periods and rain days, admin time, and the weeks you’re not billing at all.
Once you factor all that in, your real take-home often looks nothing like your charge-out rate suggests. The fix? Calculate your actual cost of doing business before you set your rate — not after.
2. Charging What the Market Charges Instead of What You Need
Asking your mate what he charges and copying it is one of the most common — and costly — mistakes in the trade industry. His cost structure isn’t yours. His income goals aren’t yours. His financial situation isn’t yours.
Your rate needs to be built from the ground up based on your real costs, your target income, and how many billable days you can actually work. Everything else is guesswork.
3. The Subby Trap
Going subcontractor sounds like freedom. More money, no boss, flexible hours. And in the short term, it often is. But a lot of tradies end up stuck: working for one builder, no direct clients, no pricing power, and completely exposed if that one relationship ends.
The subby phase should be a launchpad — a way to build cash, skills, and connections while you set up your own client base. Not a permanent state. If you’ve been a subby for more than two years and nothing’s changed, something needs to change.
4. Undercharging for Complexity
Not all jobs are equal, but a lot of tradies price them like they are. A straightforward job on a flat roof in good weather is not the same as an awkward access job three storeys up in the middle of summer.
Risk, access difficulty, job complexity, and specialisation all justify a higher rate. If you’re not factoring those in, you’re subsidising your client’s hard jobs out of your own margin.
5. Never Reviewing Your Rates
Set a rate in year one and forget it. Meanwhile, super goes up, insurance goes up, fuel goes up, materials go up. Your costs compound every year — but your rate stays flat. That’s a pay cut in real terms, every single year.
Build a rate review into your calendar. Once a year minimum. Check your actual costs, check what the market’s doing, and adjust accordingly. Your clients expect prices to go up. Most won’t blink if you do it confidently.
Know Your Number
The fastest way to stop leaving money on the table is to know your actual number — what you need to charge to hit your income goals and cover your real costs.
We’ve got two tools that can help, depending on where you’re at:
Quick check (30 seconds): The Subby to Salary Calculator is a simple tool — enter your pay structure, your rate or salary, and your hours. It instantly shows you the equivalent across ABN, casual, salary, and annual income. Good for a fast sanity check on whether your rate stacks up.
Deep dive (5 minutes): The Advanced Tradie Calculator goes much further. It gives you your true charge-out rate after all costs, a readiness score if you’re thinking about going out on your own, a 3-year revenue projection across three different paths, and a personalised 90-day action plan. If you’re serious about building a trade business that actually pays, start here.
Either way — know your number. Everything else follows from that.