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Pricing Your Services for Success

January 19, 2026 · 7 min min read

Pricing is one of the hardest decisions for service providers. Price too high and you lose jobs. Price too low and you undervalue your work. Here’s how to find the sweet spot.

Understand Your True Costs

Before setting prices, know what each job actually costs you:

Direct Costs

  • Materials and supplies
  • Transportation/fuel
  • Equipment wear and tear
  • Subcontractor fees (if any)

Indirect Costs

  • Business registration and licenses
  • Insurance premiums
  • Marketing (including Khidmat subscription)
  • Phone and internet
  • Tools and equipment replacement
  • Your time for admin, quoting, and follow-ups

Research Market Rates

Know what others charge in your area:

  1. Browse competitor profiles on Khidmat
  2. Ask industry contacts what they charge
  3. Check online forums where customers discuss pricing
  4. Consider location — rates vary by city and neighborhood

Don’t race to the bottom. Customers who only care about the lowest price often aren’t worth the headaches.

Pricing Strategies That Work

Flat Rate Pricing

Best for standardized services with predictable scope:

  • Aircon servicing: RM80-150 per unit
  • Basic plumbing repair: RM100-200
  • House cleaning: RM150-300 per session

Pros: Customers like knowing the total upfront Cons: You absorb risk if the job takes longer

Hourly Pricing

Best for variable or complex work:

  • General handyman: RM50-80/hour
  • Electrical troubleshooting: RM60-100/hour

Pros: You’re paid for all time spent Cons: Customers may worry about the final bill

Tiered Packages

Offer good-better-best options:

  • Basic: Standard service, no extras
  • Standard: Includes common add-ons
  • Premium: Full service with warranty

Most customers choose the middle option. Make sure it’s profitable for you.

When to Raise Prices

Signs it’s time for an increase:

  • You’re turning away work because you’re fully booked
  • Costs have gone up (fuel, materials, etc.)
  • You’ve gained skills or certifications
  • It’s been more than a year since your last increase

How to Communicate Price Changes

  • Give existing customers notice (2-4 weeks)
  • Explain briefly (increased costs, added value)
  • Grandfather loyal customers if possible
  • Update your Khidmat profile promptly

Discounts and Promotions

Use strategically, not desperately:

  • First-time customer discount — great for building your client base
  • Referral rewards — encourage word-of-mouth
  • Bundle pricing — discount when customers book multiple services
  • Off-peak discounts — fill slow periods

Never discount out of desperation. It trains customers to expect low prices.

Handling Price Negotiations

Some customers will ask for discounts. Prepare your responses:

  • “Can you match this lower quote?” — “I focus on quality and reliability. My rate reflects my experience and the warranty I provide.”
  • “That’s more than I expected.” — Offer a smaller scope option rather than cutting your rate.
  • “I’ll pay cash for a discount.” — Consider it, but remember that cash payments don’t build your review history on Khidmat.

Review your pricing every quarter. Are you earning what your skills deserve?