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How to set your prices (and when to raise them).

Thumbtack Writer
Thumbtack Writer
Best Answer

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“Pick your price and stick to it — it’s that easy.” It’s an appealing idea, especially if you’re just getting started and have a million other things to worry about. But pricing is complicated and based on all kinds of things — your local market, years in business, certifications, and range of services, just to name a few. Here are a few general principles to get you started.

There’s a benefit to starting low. When you’re just getting started, experience (even more than money) is what you’re angling for. Consider lowering your prices while going after your first few jobs and getting some solid reviews in the process. Set a realistic limit; commit to raising your prices after 10 hires or winning 5 Thumbtack reviews.

Research your market. It helps to understand the level of competition in your market and what other business owners are charging. If you offer the same service as many other professionals in your area, know that entering the market will be tough — and you might have to lower your prices until you’ve secured a foothold. One way to increase your chances of succeeding: specialize. The more targeted your services are, the better chance you have of cornering your market. Check out your Thumbtack Insights report to zero in on your most competitive service areas.

Availability will affect your costs. Adjust your costs when your business is most in-demand and see how things fare if you hold onto those prices when things return to normal. The more you experiment with your pricing, the better you’ll be able to adjust your base rate to match what you’re worth. You can even apply this principle on a weekly basis. If your services are most in demand on Saturday and Sunday, those times are premium — charge a higher rate.

More experience means higher costs. Don’t be afraid to raise your rates. Many professionals are — and it costs them a lot of money in the long run. As you get more experience and grow your customer base, it’s only natural for your services to be worth more. You’re busier, more specialized and you have a lot of happy customers to back you up.

How do you set your prices? Tell us in the comments below. 

replies
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Re: How to set your prices (and when to raise them).

Community Newcomer
Best Answer

As a home remodeling contractor Generally I price my quotes on a basis of,  I'd like this task.  I want this task.  I need this task. I don't like doing this task much. I love doing this task. Depending on how busy or unbusy I am and whether I am bucks up or I'm bucks down. (we all have bills, that's why I take on jobs) (and I enjoy working) 

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Re: How to set your prices (and when to raise them).

Community Newcomer
Best Answer

Junk removal. What are the demmensions of a pick up truck load. How can one determine price without the size w x lx d. Why does thumbtack culminate 2 to 3 pick ups? I had several customers confused and are shocked at the actual cost of there load. Please give customers and pros added transparency I'm pricing junk removal jobs. Thanks.

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Re: How to set your prices (and when to raise them).

Community Newcomer
Best Answer

Can someone help me with what they prefer as a solid cleaning price for homes? Or what formula do you use to get an accurate price?

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Re: How to set your prices (and when to raise them).

Community Manager
Community Manager
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@Deborah306 I looked into your account and figured out what's going on. If you go to your services page and scroll down to the bottom, you'll see advanced settings. In your advanced settings, there's the option to Suggest jobs related to my services.  That's turned on and that's why you're receiving requests outside of your preferences. Would you like me to turn this off for you?

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Re: How to set your prices (and when to raise them).

Active Community Member
Best Answer

Yes, if that will stop me from getting Resume requests. I don't want to miss out on editing longer jobs though. Thank you very much Meckell!

best wishes,

Deborah

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Re: How to set your prices (and when to raise them).

Community Manager
Community Manager
Best Answer

Of course @Deborah306, I'm always happy to help! That's been taken care of, please allow 24 hours for it to reflect on your account. 

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Re: How to set your prices (and when to raise them).

Active Community Member
Best Answer

Thank you very much Meckell!

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