Same service, different price: how postcodes affect the c...

Same service, different price: how postcodes affect the cost of hiring tradies

Staff reporterDecember 7, 2020

New data gathered by tradie jobs website ServiceSeeking.com.au reveals prices can vary significantly depending on your postcode.

Living in some suburbs can drive up the cost of hiring a tradie.

It suggests the diagonal divide between the north-east and south-west of Sydney is clearer than ever.

An excel file of the average hourly rates can be found here.

The website study noted towards the end of last year as tradie prices started to decline, residents of the inner city, eastern suburbs and the north shore were paying up to 140 per cent more for tradies than those living in the south and west.

ServiceSeeking.com.au mapped the average hourly charge-out rates of tradies across seven industries by analyising over 12,000 hourly rate quotes submitted on the site in 2018.

The map displays areas with prices above the average in red and areas below the average in green.

"The closer you get to the inner city and eastern suburbs, the higher the charge out rate," it concluded.

The most expensive suburbs are clustered around the inner city, east and north; most of the south and west (and outer north-west) of the city is the land of "milk and honey" (ie cheap tradie prices).

The geographical divide of the mapped tradie quotes bears a striking resemblance to the so-called "latte line" - north of the line is where the jobs are, while south of the line is where there's greater housing availability.

Jeremy Levitt, CEO of ServiceSeeking.com.au says tradies continue to lift their rates for customers they perceive as being better able to pay higher prices. Property prices align with this trend too.

"While we've seen a cooling in the levels of demand for tradies, there are some pockets in Sydney where customers will pay significantly more for an hour of a tradies' time," Levitt said.

"Tradies working in suburbs considered to be more affluent often increase their charge-out rates because they perceive their customers to be more capable of paying higher prices. In addition to this, these suburbs generally have a higher demand for renovation services."

A low supply of tradespeople above the "latte line" is also a factor, he noted.

"A lot of tradies are commuting from the south and west to the north and east for jobs," Levitt said.

Their hourly charge-out rates will incorporate overheads, including the cost of commuting along with insurance, vehicles, staff and tools.

The data also revealed some interesting pockets of low and high prices.

The cheapest prices for tradies are around the Blue Mountains, Milperra and Horsley Park where the average cost of a tradie is below $60 per hour.

There are also pockets of low charge-out rates in the north and east, which Levitt puts down to either "a low demand for renovation services or a perception that residents in these suburbs can't afford higher prices".

The data serves as a reminder to homeowners to shop around, Levitt said.

"Renovators need to be sure to compare quotes and prices from numerous tradies to make sure they don't end up overpaying."

Click here to enlarge.

Same service, different price: how postcodes affect the cost of hiring tradies