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We’ve all felt the squeeze of rising costs lately, and trades are no exception. So, if you’re wondering why hiring a tradie can be expensive, you’re not alone. This guide will help explain where your money goes and why choosing the cheapest option might not always be the best long-term investment.

When you hire a tradie, your payment often covers much more than meets the eye. Here's what’s typically included:

1. Quality Materials

Tradespeople rely on materials like piping for plumbers or cabling for electricians, and the prices for these essentials have risen with inflation. Opting for higher-quality materials may incur a higher initial cost, but it's a wise investment that can save you money in the long run. For instance, Clipsal switches come with a one-year warranty, while Voltex switches, which we use at TNG Electrical, offer a 25-year warranty. This means fewer replacements and the peace of mind of longer-lasting solutions.

Choosing durable, warrantied materials often means that if something fails within the warranty, your tradie will replace it at no cost. At TNG Electrical, we stand by this policy (terms and conditions apply).

2. Licenses and Insurance

Always check that your tradesperson has a current license, as it’s required by law and ensures quality standards. You can verify licenses using these links:

Public liability insurance, with a minimum of $5 million cover, protects you and your property against injury or damage. At TNG Electrical, we maintain a $10 million cover, ensuring peace of mind for our clients. You can also check if a company has had disciplinary actions taken against them here.

3. Wages

Australia has some of the highest wages in the world, which means tradespeople are fairly compensated, and fewer people live near the poverty line. These high wages are reflected in service costs but also ensure skilled labour and quality work. When you hire a tradesperson, you may also contribute to the salaries of administrative staff who support the business's operation.

4. Experience and Expertise

Higher costs can indicate more experienced and certified professionals. Their skills may help avoid costly mistakes and ensure the work is safe and up to code.

5. Tools and Equipment

Maintaining vans filled with tools and equipment is costly. These items must be paid for, maintained, and replaced when worn. Uniforms also require frequent replacement due to wear and tear, which is common in trades.

6. Marketing

Trade businesses often use marketing to connect with clients, from online ads to printed materials. These expenses factor into the cost of services.

7. Training and Compliance

Some companies invest in ongoing training to update their tradespeople on the latest techniques and government regulations. These businesses may charge a little more to cover these training costs but provide quality work that meets current standards.

What to Consider If You Receive a Surprisingly Cheap Quote

If one company’s quote is significantly cheaper, you might think you’ve found a bargain—but there could be more to consider. Lower prices sometimes mean corners are being cut. Ask these questions to understand the value of the quote:

Do they offer warranty fixes?
Do their materials have long-term warranties?
Are they licensed? (Check their REC license for electricians here)
Do they have public liability insurance, and what is the coverage?

No Standardized Pricing in Trades

It's important to understand that pricing in trades isn’t standardised, so you must do your research to ensure you’re getting good value and can trust the professionals you’re hiring. We hope this guide helps you feel more informed and patient when choosing a tradesperson.

If you have any questions or would like to book a quote with one of our technicians, call us at 0405 524 788 or click the button below to get started.

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Understanding the Cost of Hiring a Tradesperson