Tradies, know what to charge.
Tradies typically have different rates based on the skills and experience of the staff, with higher rates for qualified or licensed trades and lower rates for non-licensed trades, apprentices and labourers.
Below we’ve got some quick tips for you to consider when setting a charge out rate. For help setting your rates, download our Charge Out Template using this form.
What to consider
Charge-out rates for each category of employee need to cover:
Working weeks – number of normal hours per working week
Non-working weeks – annual leave, statutory leave, sick leave and bereavement leave
Other costs such as KiwiSaver and ACC levies
Non-productive time – travel time and breaks
Business overheads
A profit margin for the business
Office overheads such as power, phone, rent, office consumables and the wage for the administration person
Accounting fees
Vehicle running expenses
Mobile phone costs
Tools and equipment
Personal protective equipment and clothing
Insurance premiums.
Business costs might include:
Add up the costs and determine what needs to be applied to every chargeable hour so that these costs can be recovered.
Download our template by filling out this form.
Review charge-out rates at least annually to reflect current business costs or if competition is tough, being careful not to affect business viability.