The Myth of the 'Fair Price'
If you’re an electrician in Brisbane, you’ve likely felt the pressure to drop your hourly rate to win a job. You see a post on a local Facebook community group asking for a 'cheap sparky,' and twenty blokes jump on it undercutting each other until the winner is basically working for petrol money.
Here is the cold, hard truth: Being the cheapest is a business strategy for people who aren't good at business.
I’ve looked at the numbers for dozens of trade businesses across South East Queensland. The ones making the most profit aren't the ones doing the most jobs; they are the ones charging the most per hour. This article is about breaking the myth that customers only care about price. They don't. They care about value, reliability, and safety. If you can't communicate those things, the only thing left to talk about is the dollar figure.
Why Being the 'Cheap Sparky' is Killing Your Profit
Let’s look at the data. If you charge $80 an hour and your overheads (van, insurance, tools, licensing) cost you $40 an hour, you keep $40. If you raise your price to $120 an hour, your overheads stay the same, but your profit triples to $80.
To make the same money at $80/hour, you have to work three times as hard, drive three times as much, and deal with three times the number of customers. More customers mean more headaches, more warranty claims, and more time spent on the phone instead of on the tools.
The 'Price Shopper' Trap
When you compete on price, you attract 'Price Shoppers.' These are the worst customers in Brisbane. They will complain about a $5 material surcharge, they won't have the workspace cleared when you arrive, and they will never refer you to anyone except other cheapskates.
On the flip side, premium customers—the ones in Ascot, Paddington, or Bulimba—want the job done right the first time. They want a sparky who shows up in a clean uniform, puts down a drop sheet, and explains the safety benefits of a switchboard upgrade rather than just quoting the cheapest RCD on the shelf.
Myth #1: "People in my area won't pay more"
I hear this from sparkies in Logan and Ipswich all the time. "People around here are struggling; I have to be cheap."
Rubbish. Even in lower-income suburbs, people still pay for quality when they understand the risk. Electricity is dangerous. Your job is to sell safety and peace of mind, not just 'wiring.' If a homeowner understands that a cheap job might lead to a house fire, they will find the extra $200.
We’ve seen that measuring ROI on your marketing isn't just about how many leads you get, but what kind of leads you get. If your marketing says "Cheap Rates," you get cheap customers. If your marketing says "Brisbane's Most Reliable Safety Experts," you get people who value their family's safety.
How to Justify Your Premium Rates (The 'Professional' Factor)
You can't just double your prices tomorrow and change nothing else. You have to look the part. Here is what premium customers are actually paying for:
1. Communication: Answer the phone. If you can't, hire a virtual assistant or a service to take messages. Call the customer when you are 15 minutes away. This alone puts you ahead of 90% of your competition. 2. Presentation: Your van is a rolling billboard. If it’s covered in mud and the dash is buried in Macca’s bags, you aren't a premium electrician. You're a bloke with a pair of pliers. 3. The 'Small Things': Carry a cordless vacuum. If you leave a customer's laundry cleaner than you found it after installing a power point, they will tell ten friends. That is how you get more local calls without spending a cent on ads. 4. Expertise over Labour: Stop quoting 'hours.' Quote 'solutions.' Don't say "It will take me two hours to fix that." Say "I’m going to stabilise your home’s electrical system and ensure your appliances are protected from surges."
The Data Behind the Reviews
Most electricians think reviews are just about 'stars.' They aren't. They are about social proof that justifies your price. When a potential customer sees a review that says, "He wasn't the cheapest, but he was the only one who actually fixed the flickering lights that three other guys couldn't solve," you have just won the job before you even picked up the phone.
I've seen businesses in Morningside go from struggling to pay their subbies to booked out three weeks in advance just by changing how they ask for feedback. If you want to see how this works in practice, look at how some guys start getting calls even when they are just starting out. It's about the quality of the conversation, not just the quantity of the stars.
The Cost of Waiting
How long does it take to see results? If you change your pricing and your 'vibe' today, you will see the difference in your bank account within 30 days. You will lose some of the 'tyre kickers,' and that’s a good thing. It frees up your time to find the customers who actually value what you do.
Don't waste money on 'leads' from sites that pit you against 10 other guys in a race to the bottom. That is a waste of money. Spend that money on making your own business look like the premium choice.
What You Should Do First
1. Audit your hourly rate: Calculate your real costs. Include your own salary, your super, your tool replacement fund, and your marketing budget. Most of you are probably earning less than a first-year apprentice once you account for all the 'unpaid' admin hours. 2. Fix your first impression: Look at your website on a phone. Does it look like a professional company or a hobby? 3. Stop being an order taker: When someone calls for a quote, don't just give a price. Ask questions. "How long has this been a problem?" "Are you worried about the safety of the old wiring?" Lead the conversation.
At Local Marketing Group, we help Brisbane tradies stop chasing crumbs and start winning the big jobs. We don't care about 'brand awareness'—we care about your phone ringing with customers who are ready to pay what you're worth.
Ready to grow your electrical business? Contact Local Marketing Group today.