The truth about tradies' salaries

Plumbers in Western Australia may be the most highly paid of all the trades. But they have also been a victim of the mining downturn, according to new research.

WA plumbers are able to earn $87.67 an hour, which is 9.5 per cent lower than the hourly rate they were able to earn last year.

Electricians in the west are the second most highly paid of all the trades, earning on average $87.33 an hour, according to trades website ServiceSeeking, which produced the research.

The mining downturn is having an impact on trades in WA. Photo: Louie Douvis

But the big winners this year are builders in NSW. They earn $77.85 an hour, a 27.7 per cent increase compared to last year's result.

The dynamic between WA and NSW, with rates dropping in WA and increasing in NSW, is an indication the transition from a mining-led to a services-led economy is well under way.

The research is based on 52,000 quotes submitted to the ServiceSeeking website in the third quarter of last year.

Eric Lynch: don't price yourself out of the market. Photo: Supplied

The average hourly rate for all trades is $60.88 per hour, a slight increase of 0.3 per cent on last year.

Eric Lynch, licensed electrician and director of ElectricSun, says he's able to earn between $65 and $75 an hour, with commercial work charged at the higher rate and residential work at the lower rate.

Lynch says the way to get the best rate is to always produce high quality work, leading to client referrals. He says he has increased his hourly rate over time as the cost of inputs has risen. He also says the secret is to charge a rate that meets rather than exceeds the market.

"I'd love to charge a really high rate, but I might only get five hours of work that week with that high rate. I think the rate I charge is a pretty good rate, because I'd rather be busy and working," he says.

Lynch started his business last year having previously worked for a large electricity business. He's focused on developing a business to install batteries to collect and store solar energy at home, but is doing traditional electrician work as the market catches up. Home solar batteries are an important and emerging part of the renewable energy market.

"We're about two years away from the market being ready so it's about setting the platform for that," he explains.

This has involved doing accreditation courses and keeping abreast of this new technology. He'll also start developing networks at the battery manufacturers. For instance, Enphase is aiming to release a home battery in August and Lynch will undertake its accreditation course to be able to get work installing these batteries.

Lynch says it's challenging running a business in the trades, especially passing on costs to customers. For instance, it can be difficult to pass on the cost of travel time. He says one way to address this is to have a minimum two-hour charge. But even still, recouping all costs is tricky.

Nevertheless, he says demand for his services is only increasing. "Everyone needs electricity to their house. If your power goes off in your house, you could kill yourself trying to fix it. And all of your food is spoiling in the fridge. So you need it fixed and that drives demand."

ServiceSeeking CEO Jeremy Levitt agrees with Lynch that when it comes to running a successful business and increasing hourly rates, it's essential to deliver exceptional quality of service that stands out from the competition. There are also many other steps trades businesses can take to help improve revenue.

"Actively market your business through word of mouth, sign contracts with suppliers to get gear and materials at better rates and reduce your overheads," says Levitt.

"It's also important to continually upskill yourself and your employees. Don't forget to be active in the community, online and offline, to help improve your branding. And hire more staff once when you need to, to help maintain a high quality of work," he adds.

Trades businesses that do this will give themselves a competitive advantage in a market filled with enterprises with varying levels of service.