Should tradies increase prices in the new year? A practical guide to making the call

A new year brings new jobs, new goals… and often, new costs. For many Aussie tradies, January is the moment you look at your books, your workload, and your bank account and wonder:

“Should I put my prices up this year?”

With rising material costs, inflation biting, labour shortages, and holiday overtime, it’s not just a fair question; it’s a strategic one. Here’s how to make the call confidently, without losing clients or undercharging for your skills.

Let's be real: your costs HAVE changed

It’s no secret that the trades industry has been hit with increasing expenses over the last few years:

• Timber, steel, and concrete price rises

• Fuel costs up

• Supplier surcharges

• Rising insurance premiums

• Increased labour and subcontractor rates

• Tool and equipment inflation

If your costs go up but your prices stay the same, your profit margin shrinks each year, meaning you’re effectively giving yourself a pay cut.

A price rise isn’t greedy; it’s necessary to keep your business healthy.

Consider the holiday factor

December and January often come with:

• Overtime

• Weekend work

• Emergency call-outs

• Staff time off

• Public holiday rates

• Reduced supplier trading hours

All of these increase your business costs, even if they’re temporary.

If you’re noticing that the holiday period consistently squeezes your margins, it’s a sign that your pricing may not reflect your true cost of operating.

Labour shortages: paying more to keep good people

Across Australia, skilled trades are in demand, and workers know it.

If you’ve raised wages, paid bonuses, or increased subcontractor rates to secure (or keep) good people, your pricing needs to support that.

If your team’s value has gone up, your prices should too.

Signs it's time to raise your prices

If you identify with any of these, it’s time:

• You’re booked out weeks or months ahead

• You’re working overtime to keep up with demand

• You feel resentful or exhausted

• Jobs feel underpaid for the time they take

• You haven’t raised prices in 12+ months

• Your margin is tightening

• You can’t invest in better tools or systems

• Cash flow feels unpredictable

Busy plus broke isn’t success.Busy and profitable is.

How to increase prices without losing clients

New year, new invoices. But only if you lock in the jobs early.

December is the perfect time to:

• Send quotes for January

• Confirm start dates

• Follow up leads before everyone clocks off

• Batch-book jobs so you return to a full calendar

Tradies who don’t pre-book often spend the first two weeks of January scrambling for work.

What happens if you don't increase prices?

You end up working harder for the same money, delaying equipment upgrades, stressing about cash flow, and risking burnout. Not adjusting prices is effectively a pay cut.

The bottom line

A small, well-planned price rise each new year protects your margins, keeps your business healthy, and ensures you’re paid fairly for your skills. The trades industry shifts quickly — your pricing should too.

At Accounting Navigator, we help tradies price with confidence, so rising costs don’t eat into your profit. Want more support? Check out our Small Business Foundations Course.