When setting up and running your own company, understanding how to price your services can make or break your success.
But with so many factors influencing pricing, from experience and skill level to geographical location, it can be challenging to figure out what to charge.
To help tradespeople understand how to best price their offering, Capital on Tap analysed 16 common trades across the UK to reveal which are the highest and lowest-earning in the country.
They also looked into which UK cities are home to the highest and lowest-earning trade workers, as well as sharing expert advice on pricing your services as a small business owner.
Locksmiths are the highest-earning tradespeople in the UK, with an average hourly wage of £44.65
Locksmiths are crowned the highest-earning tradespeople in the UK, with an average hourly wage of £44.65. They’re also the most highly-rated, boasting an average rating of 4.97/5. The urgency and critical nature of their job, as well as a less saturated market due to the specialised skill set and specific training required, enables them to charge more for their work.
Based on a construction company Proficiency, builders in London earn an hourly wage of £43. This calculation assumes it is a high-end general builder with prior experience.
Heating engineers and gas fitters follow closely in second, with average earnings of £41 per hour. Carrying out repairs on heating is a vital and often emergency service, putting them in a position to charge higher fees.
Plumbers come in third with an average hourly wage of £39.25, followed by bathroom fitters (£39.15) and painters and decorators (£38).
Plastering and screeding is the UK’s lowest-earning trade, averaging £23.45 an hour
Plasterers and screeding contractors are the lowest-earning tradespeople, with workers paid just £23.45 an hour on average. Tilers follow in second, with average hourly earnings of £24.50, followed by double-glazing installers (£26.60).
These trades all have relatively low barriers to entry, meaning there is a large pool of workers available, which can drive down wages. Demand for these services can also vary depending on the season, leading to periods of lower earnings.
Tradespeople in Glasgow are the best-paid in the UK at an average of £50 per hour, while those in Hull earn the least with an average of £25.56
Glasgow leads the way as the city where tradespeople earn the most for their services. Workers here take home an average of £50 per hour, which adds up to a gross salary of £7,961 per month. That’s three times higher than Glasgow’s average monthly net salary of £2,479.
London comes next, with trade workers earning £41.31 per hour on average, followed by Reading (£40.63) and Preston (£32.31).
Meanwhile, Kingston-upon-Hull offers the lowest average hourly wage for trade workers at £25.56. This works out as a gross average monthly salary of £4,070, which — although lower than in other cities — is still much higher than the city’s average monthly net salary for all jobs (£2,772).
Swansea is the second lowest-earning city for trades, with a marginally higher hourly wage of £25.88, followed by Leicester (£26.19) and Coventry (£28.25).
Alex Miles, Chief Operating Officer at Capital on Tap said, “Whether you’re a tradesperson just starting out, or a small business owner looking to expand your offering, understanding the pricing landscape is crucial for success. You should start by being aware of your costs — including all expenses and hidden costs like insurance — to calculate your profit margin.
You’ll also need to research your market to figure out how much customers are willing to pay, which you can do by looking at what your competitors are charging and considering the value of your service. You could also gather feedback from customers on this.
At the end of the day, your goal is to make money — so you need to charge enough to cover your costs and make a profit. If you’re not making enough money, consider offering discounts or packages. On the other hand, if you’re not able to keep up with demand, consider raising your prices.”