The Hourly Rate Myth!

For many years, hours plus materials has been how trades have charged for their services. Many people still call around asking for an hourly rate quote from tradies and usually make a decision on who they will go with based on who gives the lowest rate. However, what people don’t realise is that an hourly rate is not actually a suitable measure to make a comparison, that the business with the lowest rate is not necessarily the cheapest or worse still, they may not be the right tradesperson for you or the job. As such, hourly rate comparisons doesn’t allow you to “compare apples with apples”.

The demand for quotes has increased over the last few years and many trades still provide verbal price ranges rather than proper written quotes. At Bluegum, we believe this needs to change. That’s why we quote our electrical services per task, not per hour, as part of a free no-obligation quote that is completed onsite.

Why can’t I compare hourly rates?

Although it sounds simple, quoting for services is actually a lot more involved. For example, one electrician might charge $10.00 less an hour but if they are not efficient in their work and take longer to complete a task, they’ll end up costing you a whole lot more in the long run. The end price can also vary based on other factors including:

• The quality and brand of materials used
• The retail mark-up on materials
• The efficiency of the trades-person
• The experience of the trades-person
• Time-frames and communication

The reason we include time-frames and communication in the above list is it can cost you more if the there are delays due to communication issues between tradie and client. For example, if you’re renovating and you keep getting delayed by a particular trades-person not showing up, then it’s likely to cost you more in fees of other tradespeople on site resulting from delays. Aside from the money aspect, it may also cost you in personal time if you have had to take time off work. So it’s okay to ask for a quote! You should ask for a quote.

If you have a small job you may be happy with a price over the phone however, we suggest you have that confirmed once the trades-person is on site, before they commence work. For most work it’s appropriate to ask for a fixed price quote for which the tradesperson will need to come to site. This will also allow you to meet them and ensure you feel comfortable with their expertise and professionalism.

Note that if a tradie fails to get back to you or doesn’t show up for a quote, you’ve dodged a bullet and need to find a more reliable trades-person.

Why do we price per task?

At Bluegum we believe pricing per task allows for maximum transparency and supports you to make an informed decision based what meets both your personal and financial needs, with no surprises. We believe it’s our responsibility to use our expertise to know what’s involved and the value of our work. We’ve spent a lot of time and energy creating a pricing manual to ensure all our clients get a standardized price that considers all aspect of the task when quoting. From Gisborne to Essendon Bluegum can give the information you need to make informed decision and remain in control.

Author: Chantel Gilbert

Chantel brings her professional qualifications, entrepreneurial edge and passion for customer service together in her role as General Manager of Bluegum Electrical Solutions. Chantel is our go-to for all things to with the Solar Rebates and is a pro at dealing with PowerCor & Jemena. She is challenging the stereotypes in the trade industry and surprising their customers with quality and kindness.

Along the way, Chantel has bagged multiple Excellence in Customer Service Awards on behalf of Bluegum and is the proud recipient of the 2016 Young Business Person of the Year.

Whether she is on the netball court, at the gym or out bushwalking, Chantel is always thinking about the next innovative step for Bluegum and how they can continue to raise the bar and exceed their customer’s expectations.