What to Charge

How to set prices that are fair to customers and profitable for you.

The Pricing Mindset

Most new service business owners underprice their work. They're scared customers will say no, so they charge less than they should.

Here's the problem: low prices don't just mean less money. They mean:

Attracting price-sensitive customers who complain more
Working harder for less reward
No margin for mistakes or slow days
Burnout and resentment
Eventually quitting because "this isn't worth it"

Pricing isn't just math. It's a business decision that affects everything.

The Three Pricing Methods

There are three main ways to price service work:

1. Hourly Rate

You charge based on time spent.

Pros:

Simple to calculate
Fair for unpredictable jobs
Easy for customers to understand

Cons:

Punishes you for getting faster
Customers may worry about the clock
Hard to estimate total cost upfront

Best for: Jobs with unpredictable scope, time-and-materials work

2. Flat Rate (Per Job)

You charge a fixed price for the complete job.

Pros:

Customers know the cost upfront
Rewards efficiency (faster = more profit)
Easier to quote and sell

Cons:

Risk if job takes longer than expected
Requires good estimation skills
Some jobs are hard to scope

Best for: Repeatable services with predictable scope

3. Per-Unit Pricing

You charge based on a measurable unit (square feet, per room, per item).

Pros:

Easy to scale quotes
Fair and transparent
Simple for customers to understand

Cons:

Doesn't account for difficulty variations
May need adjustments for special circumstances

Best for: Services where size/quantity drives time (lawn care, cleaning, pressure washing)

Finding Your Market Rate

Before setting prices, know what others charge in your area.

Research Methods

Google it:

Search "[your service] prices [your city]"
Check competitor websites
Look at Google Business Profiles for pricing info

Call around:

Call 3-5 competitors and ask for quotes
Describe a typical job (your house, or a friend's)
Note the range of prices

Ask in groups:

Local Facebook groups often discuss pricing
Nextdoor has pricing discussions
Industry forums and subreddits

Use pricing guides:

HomeAdvisor, Thumbtack, and Angi publish average prices
Search "[service] average cost [year]"

What You'll Find

Prices vary widely. You'll see:

Low-ball operators (often unlicensed, uninsured)
Mid-range established businesses
Premium operators charging top dollar

You don't have to match the lowest price. In fact, you shouldn't.

Calculating Your Minimum Rate

Here's the math for what you need to charge:

Step 1: Determine Your Target Income

What do you want to make per year?

For this example: $50,000/year

Step 2: Account for Non-Billable Time

You can't bill for every hour you work. Account for:

Travel time
Quoting and admin
Marketing
Equipment maintenance
Weather delays (outdoor services)

Realistic billable hours: 60-70% of your work time

If you work 40 hours/week, maybe 25-28 are billable.

Step 3: Calculate Required Hourly Rate

$50,000 ÷ 50 weeks = $1,000/week needed $1,000 ÷ 25 billable hours = $40/hour minimum

Step 4: Add Business Expenses

Your rate needs to cover more than your salary:

Insurance: ~$50-100/month
Gas/vehicle: ~$200-400/month
Equipment/supplies: ~$100-200/month
Phone/software: ~$50-100/month
Taxes: ~25-30% of income

Add 30-40% to your base rate for expenses and taxes.

$40 × 1.35 = $54/hour minimum

Step 5: Reality Check

Compare your calculated minimum to market rates:

Below market: Good—you have margin
At market: Okay—aim for efficiency
Above market: Problem—adjust expectations or find ways to deliver more value

Pricing by Service Type

Here are typical price ranges for common services. Your area may vary.

Lawn Care

Per-cut pricing:

Small yard (under 5,000 sq ft): $30-50
Medium yard (5,000-10,000 sq ft): $45-75
Large yard (10,000-20,000 sq ft): $65-100
Very large (20,000+ sq ft): $100+

What's included: Mow, trim, edge, blow clippings

Add-ons:

Hedge trimming: $25-75
Leaf cleanup: $100-300 (seasonal)
Mulching: $50-100+ per yard of mulch

Pressure Washing

Driveway (average 2-car): $100-200 House washing (average home): $200-400 Deck/patio: $100-250 Fence: $100-300

Pricing often based on square footage: $0.15-0.40/sq ft

House Cleaning

Standard cleaning:

Small apartment/condo: $80-120
Average 3-bedroom home: $120-200
Large home (3,000+ sq ft): $200-350

Deep cleaning: 1.5-2x standard rate

Move-out cleaning: 2-3x standard rate

Recurring discount: 10-15% off for weekly/bi-weekly

Gutter Cleaning

Single-story home: $75-150 Two-story home: $100-200 Large/complex homes: $200-350

Often priced per linear foot: $1-2/ft

Window Cleaning

Per window: $4-8 (exterior only), $8-15 (inside and out) Per pane: $2-5

Average home (20-30 windows): $150-300

Junk Removal

Minimum load (few items): $75-150 Partial truck load: $200-350 Full truck load: $400-600

Plus dump fees (passed through or built into price)

The Pricing Psychology

Price Anchoring

When you give a quote, the first number sets expectations.

Example: "Standard driveway washing runs $150-200 depending on size and condition. Looking at yours, I'd say $175."

The range anchors them. The specific number feels considered.

Premium Positioning

Higher prices can actually attract better customers:

Price signals quality
Serious customers expect to pay fair rates
Lowballers attract problem customers

You don't want to be the cheapest. You want to be the best value.

The "Worth It" Test

Ask yourself: "Would I pay this price for this service?"

If yes, charge it confidently. If no, either improve the service or adjust the price.

Raising Your Prices

As you gain experience and reviews, raise your prices:

When to Raise Prices

After your first 20-30 jobs (you're better now)
When you're booking 2+ weeks out consistently
When you get more reviews and credibility
Annually (at minimum, to keep up with costs)

How to Raise Prices

For new customers: Just quote the new rate. No explanation needed.

For existing customers: "Just wanted to let you know I'll be adjusting my rates starting [date]. Your new rate will be $X (up from $Y). I really appreciate your business and wanted to give you advance notice."

Most customers accept reasonable increases. Those who leave over small increases were probably price-sensitive problems anyway.

How Much to Raise

5-10% annually is reasonable and expected
Larger increases (15-25%) when significantly improving service
Match market rates as you gain credibility

Setting Your Starting Prices

Here's a practical approach for your first prices:

Step 1: Find Market Rate

Research what others charge for your service in your area.

Step 2: Start Slightly Below

Price 10-15% below market rate for your first 10-20 jobs. This compensates for:

Less experience
Fewer reviews
Building your reputation

Step 3: Track Everything

Note how long each job takes and any issues. You're learning your true costs.

Step 4: Adjust Quickly

After 10-20 jobs, you'll know:

Which jobs were underpriced
Which were profitable
Where your pricing works

Adjust based on real data, not guesses.

Step 5: Move to Market Rate

Once you have reviews and experience, raise to full market rate. You've earned it.

Home Guild Pro: Your Pricing Partner

Keeping track of your pricing, knowing what to quote, and maintaining consistency gets easier with the right tools.

Home Guild Pro helps you:

Save pricing templates for common jobs
Track job profitability to see what's actually making money
Build quotes quickly using your established rates
Adjust pricing based on real data from your completed jobs

When you're ready to move beyond spreadsheets and guesswork, Pro gives you the structure to price with confidence.

Action Steps

Research market rates for your service (call competitors, check online)
Calculate your minimum hourly rate using the formula above
Set starting prices at 10-15% below market
Create a simple price list for your common services
Track time and profit on your first 10 jobs
Plan your first price increase after establishing reviews

Next lesson: How to quote jobs quickly and accurately.