/ how-to
How to Price Your Local Services (Without Undercharging)
Almost everyone starting out picks a number that feels polite and discovers six months later it was too low. Here's the arithmetic that stops that — including the part most guides leave out.
The short answer: work out the floor below which the job costs you money, find out what your area actually pays, and price between the two — nearer the top as your reviews build. Then check what the platform takes, because a commission doesn't come out of your profit so much as it gets added to your customer's price.
Step 1 — Find your floor
The floor is the rate below which you're working for free. Four numbers get you there, and the third and fourth are where people go wrong:
- What you want to take home per month, after everything.
- Your business costs — supplies, fuel, equipment wear, insurance if you carry it.
- What you set aside for tax. Nobody's first estimate includes this, and it's the single most common reason a rate that looked fine doesn't feel fine.
- Hours you can actually bill. Not 160. Travel, quoting, messaging, buying supplies and gaps between jobs are all unpaid. For most people working part-time, 60 billable hours a month is an honest number.
Worked through, with a $3,000-a-month take-home target:
| Step | Figure | Running total |
|---|---|---|
| Target take-home | $3,000 / month | $3,000 |
| Set aside 25% for tax | ÷ 0.75 | $4,000 |
| Add business costs | + $200 | $4,200 |
| Divide by billable hours | ÷ 60 hours | $70 / hour |
| Your floor | $70 / hour | Below this you're losing money |
Use your own numbers — the tax percentage in particular depends on where you are and what else you earn, so treat 25% as a placeholder and not advice. The point of the exercise isn't the answer, it's that $70 is nothing like the $25 an hour most people would have guessed.
Step 2 — Find the local ceiling
Your floor is about you. The ceiling is about your market, and the only way to know it is to look. Open the app, search your own service the way a customer would phrase it, and read the first ten listings near you. Write down the lowest, the highest, and roughly where the middle sits.
Then place yourself honestly:
- No reviews yet? Sit at or just under the middle — not at the bottom. The bottom of the range attracts the customers who'll be hardest to please.
- Some reviews and a specialty? Middle to upper third.
- Booked out consistently? You're under the market. See the last section.
Step 3 — Hourly, flat, or per visit
Each is right in different circumstances:
- Hourly when the scope is genuinely unpredictable — general handyman work, "can you take a look at this". Protects you from the job that turns out to be three jobs.
- Flat rate once you've done the job enough times to estimate it well. Customers prefer a fixed number, and it pays you for being fast instead of penalizing you for it. Hourly pricing quietly punishes competence.
- Per visit or per month for anything recurring — weekly cleans, dog walks, tutoring. Predictable for both sides, and it's how a side hustle turns into an income.
Whichever you pick, name what's included. Most price arguments are actually scope arguments.
Step 4 — Account for what the platform takes
This is the step most pricing guides skip, and it's the one that changes the number your customer sees. A commission isn't a haircut on your profit — to hold your take-home steady, you have to raise your price by more than the percentage taken.
Holding a $70/hour take-home constant:
| Platform take rate | You must charge | You take home |
|---|---|---|
| 30% | $100.00 / hour | $70 |
| 20% | $87.50 / hour | $70 |
| 15% | $82.35 / hour | $70 |
| Gig — 0% | $70.00 / hour | $70 |
Read that column twice. At a 30% take rate you have to quote $100 to end up where $70 would have put you — so you're competing against people who look 30% cheaper while earning exactly the same. The commission doesn't just cost you money; it costs you jobs you never hear about.
On Gig the number you list and the number you keep are the same number. 0% commission, and the payment never passes through the app.
Customers pay you directly — Venmo, Cash App, Zelle, PayPal, cash, whatever you agree — so there's no cut, no processing deduction and no waiting for a payout to clear. (Here's how the app pays for itself instead.)
Step 5 — Write the price so it converts
A number on its own invites haggling. A number with a scope attached invites a booking:
- Weak: "Cleaning — $40/hr"
- Strong: "Standard clean, 2 bed / 1 bath — $140, about 3 hours, supplies included. Deep clean $220."
The second version answers the three questions every customer has (what, how long, what's included) before they ask, which is also exactly the kind of specific text that gets you found when someone searches in plain language.
When to raise your prices
The signal isn't a date, it's your calendar. Raise when you're consistently booked, turning work away, or being asked for slots you can't fill. Being fully booked at a low rate isn't success — it's evidence the rate is under the market.
Raise for new customers first, roughly 10–15%, and let existing regulars follow a cycle or two later. Don't apologize for it in the listing; a rate presented confidently is questioned far less than one that's explained.
Not tax advice. The 25% set-aside above is a placeholder to make the arithmetic work, not a recommendation — what you owe depends on where you live, your total income and how you're registered. Check with someone qualified in your area before relying on any of it.
Frequently asked
How do I work out what to charge?
Start from the bottom, not the middle. Decide what you want to take home each month, add your business costs, add what you must set aside for tax, then divide by the hours you can realistically bill — which is far fewer than the hours you work. That's your floor. Then check what providers near you charge for the same job and position yourself against that range.
Should I charge hourly or a flat rate?
Hourly when the scope is genuinely unpredictable, like general handyman work. Flat when you've done the job enough times to estimate it well — customers prefer a fixed number, and as you get faster a flat rate pays you for skill instead of punishing you for speed.
How does commission affect my price?
It forces you to charge more for the same take-home. To net $70 an hour on a platform taking 20% you must charge $87.50; at 30% you must charge $100. The customer sees the higher number, so the commission makes you look more expensive than someone earning exactly the same elsewhere. On Gig the commission is 0%, so your listed price and your take-home are the same number.
When should I raise my prices?
When you're consistently booked out, turning work away, or being asked for dates you can't fill. Raise for new customers first, in the region of 10–15%, and let regulars follow later. Fully booked at a low rate isn't success — it's a sign the rate is under the market.
Set your number, then list it
Do the floor calculation once and you'll never guess again. Then put it somewhere people can find it — Gig is free to join, listing takes about a minute, and at 0% commission the price you set is the price you keep. Not sure what to offer yet? Start with the 21 ideas here.