Most home-based service owners undercharge because they price the hour they are in front of the customer and give away every other hour. A pricing review fixes that by measuring your whole working week, setting a target income, and building rates, minimums and travel charges from those figures. It is the service we recommend first more often than any other, because better pricing makes every later step easier to afford.
Who this is for
It suits owners whose calendar is full but whose savings are not. Typical signs:
- You quote from memory, or from what a competitor charged two years ago.
- Small jobs feel like they cost you money, and you suspect they do.
- You do not charge for travel, or you charge one flat fee for any distance.
- You have not raised prices since you started, or you raised them once and felt guilty.
- Your partner asks why you work so much for what comes in.
Cleaners, tutors, groomers, home-studio stylists, photographers, bookkeepers and handypersons all hit the same wall, just with different numbers.
What is included
A pricing review has five parts, each producing something you keep.
- Time audit. Two weeks of tracking, or a careful reconstruction, of every hour: billed work, travel, messaging, quoting, buying supplies, cleaning equipment and bookkeeping.
- Cost picture. Your monthly business costs, such as vehicle, phone, software, insurance, supplies and a fair share of household costs you treat as business, alongside the income you need to take home.
- Rate build. A target hourly rate, then a price sheet: standard rates, minimum charge, travel zones and rush or after-hours pricing where it fits.
- Change plan. When and how to introduce new prices, a short message template for existing customers, and how to handle the ones who push back.
- Monthly check. One number you look at every month to see whether pricing is still holding.
We do not tell you what you may deduct or claim. For that, the CRA's page on business-use-of-home expenses and a qualified accountant are the right sources.
A worked example
A home-based house cleaner shows how the numbers usually move. She charges $45 an hour and bills 100 hours a month: $4,500. Her unbilled time is 30 hours of driving, 10 of messaging and quoting, and 6 of supply runs and laundry. Costs are $900 a month. Her real rate: ($4,500 − $900) ÷ 146 hours = about $24.66 an hour.
Now suppose she sets a $50 rate, a two-and-a-half-hour minimum visit and a $15 charge beyond her core area. If she loses 10% of billed hours, she bills 90 hours at $50 for $4,500 before travel fees, plus perhaps $150 in travel charges. Driving falls with fewer scattered jobs, so total hours drop to about 128. Real rate: ($4,650 − $900) ÷ 128 = about $29.30. Slightly more income, 18 fewer hours a month, and room to grow.
Your figures will differ. The point is that the arithmetic, not a feeling, decides your price. The pricing guide has the full worksheet.
Timeline
Most reviews take three to four weeks from first call to a finished price sheet.
- Week 1: time and cost tracking begins; we review where your customers come from.
- Week 2: tracking continues; we draft the rate build.
- Week 3: we agree on rates, minimums and travel zones, and write the customer message.
- Week 4: you introduce new prices to new customers first, existing ones on a date you choose.
An hourly version, using numbers you already have, can be done in one or two sessions.
How results are measured
We judge the review on your real hourly rate, not on revenue alone. Revenue can rise simply because you worked more. The measures we track are:
- real hourly rate (income after costs, divided by all hours)
- average job value and share of jobs below your minimum
- unbilled hours as a share of total hours
- customers lost after the change, and whether they were profitable ones
Mistakes to avoid
These are the pricing mistakes we see most often in home-based businesses.
- Discounting because you work from home. Customers pay for the result, not your rent. A home base is a cost advantage you can keep, not one you must hand over.
- Hiding travel inside the hourly rate equally for everyone. Close customers subsidise far ones, and your route stays scattered.
- Raising prices for everyone on the same day with no notice. Give existing customers a date and a reason.
- Copying the cheapest competitor. You do not know whether they are profitable, or whether they will still be in business next year.
Once pricing holds, the usual next step is getting found or scheduling. See the pricing page for what a review costs, or contact us to start.
Frequently asked questions
Won't I lose customers if I raise prices?
You may lose a few, usually the ones who were costing you most in time and travel. We model that loss before you change anything, so you can see how many customers you can afford to lose and still come out ahead.
How often should a home business review prices?
Once a year at minimum, and any time a big cost moves, such as fuel, insurance or a vehicle payment. The review includes a short monthly check so drift is caught early.
Do you set prices by looking at competitors?
Competitor prices are a reference point, not a starting point. Many home-based competitors are underpricing too. We start from your costs and target income, then check the market.
Is this tax or accounting advice?
No. We work with the numbers you give us to set prices. Questions about what you can deduct or how to report income belong with an accountant and the CRA.