When charging a daily rate pays

CHARGING A DAY RATE FOR YOUR WORK, instead of an hourly rate, can be a good way of making sure you get paid a certain amount for each job. This can help you set a budget and ensure you’re bringing in a certain amount of money each week. It also gives your clients some peace of mind, because they will know how much to set aside to pay you.

Charging a day rate can help you set a budget and ensure you’re bringing in a certain amount of money each week.

But just as there are advantages to charging a day rate, there are some disadvantages too.

Pros of day rates

You’re getting a flat fee, so if the job doesn’t take as long as you anticipated, you’re still getting paid the same amount to complete it.
It’s easier to get clients, because they’ll feel more secure knowing from the outset how much the job will cost.
It gives structure to your finances, which is important when you’re first starting out.

Cons of day rates

It ties you down to one job. Sometimes you can earn more money by doing a number of smaller jobs in one day, rather than just one job.
It gives you less flexibility to leave the job site, say, to quote on other work, or if any other circumstances arise that mean you have to leave the job periodically. It might not be convenient for you or others to make up extra hours at another time or extend your day.
If a job runs longer than anticipated, or is more specialised than anticipated, you could find yourself out-of-pocket or not getting paid as much as you could.
If you run into a previously unforeseen problem or specialised area, it can be difficult to get the client to pay more than what you originally agreed on.
You must quote thoroughly for the job beforehand, so you need to be experienced to ensure you’re quotes aren’t too low.

Not all projects are well-suited to charging a day rate, particularly if they’re complex and have the potential to be time-consuming.

Jobs that are straightforward or where most of your day will be spent doing labour work are better suited to day rates, leaving the longer, more intricate work that has the potential to take a long time to an hourly rate.

If you want to work out how to set budgets and what kind of rates you should be charging to cover all your on-the-job expenses, get yourself trained up in one of our online cloud accounting courses in MYOB or Xero.

Want help creating sales and marketing messages that will deliver more leads to your business? Contact the team at Virion for more information about our content marketing services.

Online marketplaces bridging the gap for tradies

tradesmen carpenter painter plumber electrician turning quote into sale

THE AREA A LOT OF TRADESWOMEN and tradesmen struggle with is turning prospects into customers; in particular getting their quotes and estimates approved so they can commence work. But online marketplaces like hipages, Airtasker, Oneflare, ServiceSeeking, and a raft of others, are helping to close that gap.

Online payment facilities

These marketplaces are helping to protect the money of the consumers using them as well, but offering escrow services. Airtasker, in particular, was the first online marketplace in Australia to add a payment facility to its platform that allows customers to pay for a job, which will be held until the job is complete and both parties are satisfied.

Helping small businesses grow

Hipages and Oneflare are owned by News Corporation (majority owners of Realestate.com.au) and Domain Group (operators of rival property portal Domain) respectively. Both real estate portals are investing heavily in growing their ancillary revenues — that is, revenue from sources other than property ads — by recommending services that homebuyers and sellers are likely to need next. To this end, Domain recently launched a mortgage lending service called Domain Loan Finder, as a joint venture with Lendi.

If you’re a builder, removalist, cleaner, plumber, electrician, labourer, painter and decorator, or other kind of trademan or tradeswoman, then advertising on either hipages or Oneflare is probably a no brainer. As Realestate.com.au and Domain begin to offer these services directly from the real estate listings on their sites, apps, email marketing, and so on, this where most homeowners will find their next tradie.

If you’re a tradesperson, then advertising on either hipages or Oneflare is probably a no brainer. As Realestate.com.au and Domain begin to offer these services directly from the real estate listings on their sites, apps, email marketing, and so on, this where most homeowners will find their next tradie.

Oneflare and Hipages, through their association with Domain and REA Group, will become sites for highly skilled tradespeople, while the Airtaskers and ServiceSeekings will remain sites for lower-cost tradespeople.

For help determining the right places to advertise your business online, contact the team at Virion for more information about our content marketing services to suit your budget.