Published on 8 July 2014. Updated on 29 October 2025.
These are indeed tough times for many business owners, when survival needs business and fiscal smarts to stay on top of everything. However, unfortunately, there are some ‘nasty tricks’ some businesses action when endeavouring to get business. I’m going to talk about those tricks and how to ensure YOU don’t get caught up by them, nor do your potential customers get stung by choosing the ‘cheaper option’ which in fact was not cheaper. I’m also going to discuss why clear pricing is valuable and important.
Some of The Less Tasteful Tricks
- Pricing without GST; so that when you get an invoice, it’s 10% more than you expected. It’s actually illegal in Australia to price exclusive, unless it’s super clear that it’s exclusive, or $110+GST. Don’t assume $110 would be $100 including GST. Now it’s only $10 in this case, but what about a $5K sale; that’s $500.
- Pricing with the intent that you’re going to upsell on the spot. Let’s say you’ve quoted for installing a timber fence but have not allowed for the removal and disposal of the old one. Be clear about that – the owner is to remove and dispose of the old fence. Or provide a price which includes the whole service. Don’t win a job because you’ve missed a good chunk of the work which is obviously going to be done. If the owner says they will remove the old fence, then cover yourself and say that, otherwise, include what is obviously needed. As a consumer, don’t assume anything and ask (ideally in writing, such as email) – that price includes GST, or that price includes removing the old fence and removing all rubbish off the site.
- Misleading pricing, where a picture shows a larger item, but there are no measurements, so the customer presumes the size based on the image. That’s just misleading and dishonest.
- Telling a customer that something is not needed (such as a council inspection) when you know it fully is. Some businesses will say “no council fees charged”, but in fact, if they are doing things correctly, they are being incurred and perhaps the cost is being absorbed in some other way, such as in materials.
- Only $39 per week … but when you investigate, it’s a 1-year contract AND that’s exclusive of GST (or worse, it’s in US dollars and even more again). As consumers, we need to check the currency, GST and do the maths. $39 a week might not sound like much, but $2K (or more) is somewhat more. Don’t assume because you’re paying weekly that you can stop after a couple of weeks; read the fine print.
- Selling to a customer who doesn’t need what you’re selling. Sorry, but some motor mechanics have earned the industry a bad name at times, telling a person who doesn’t seem to know much about mechanical matters, something which is absolute rubbish and a rip-off. More than once I’ve borrowed a friend’s husband to ensure I don’t get ripped off. I also always use people who have come recommended to me; those I can trust as they are the expert and I can believe in what they tell me.
- Quoting what you know is an inferior product, only to win the job, rock up and ‘upsell’ to what really needs to be provided.
Why Be Honest in Your Quoting and Clear in Your Pricing
People will get upset and angry as they feel they have been ‘ripped off’. These say with online reviews, social media and all the other easy ways to communicate, it’s not hard for them to become keyboard warriors and really bag you. Plus, be sure they will absolutely NOT recommend you to family and friends.
Expect to spend more time ‘fighting with customers’ than actually doing the job. Go back to the fencing scenario; the expectation is to remove and replace … whilst a more docile person might take it on the shin, their family or friends might have ‘words’ with you. The person who stands up for themselves will fight the point, and potentially take it to QCAT or some other means to get satisfaction. You may (or may not) win, but think about the lost time in responding, attending court and dealing with the problem.
Customers aren’t happy, and reasonably so, they likely won’t pay the final amount. I know some businesses insist on a good chunk up front, but often the balance is on completion. Not doing what you should be doing just means you’re constantly chasing money.
Just as a good reputation gets around, a bad reputation spreads like a fire in a barn full of hay. You’re going to be known as disconnected, unscrupulous and untrustworthy; you might even be so lucky as to find yourself on a current affairs program on TV.
Be assured, you’ll also never get any repeat back from your customers. Do a great job, and repeat business over time can really make a business rather successful.
How to Quote Clearly
- Communicate clearly with your client, what they want, need and what’s important to them. One customer may need budget, and another may want quality, durability and reliability. You can price accordingly, but again, communicate that you’re providing that option.
- Say exactly what is included or not included.
- If it’s possible someone might need something extra; a connector, fence removal or an optional extra which is likely going to be of benefit, then add a second line item for that ‘optional extra’ … they may even go with it, but they are doing so from an informed position.
- Be openly and blatantly clear about GST – not just a tiny little asterix or fine print on page 3 that all prices are exclusive of GST.
- If the pricing is higher, because of quality products, materials or expertise, then communicate that. People don’t always want cheapest – which is why a tyre company talks about tyres you can trust your family’s lives with. Add all the extras that they get, so they can clearly compare your pricing to perhaps another. Genuine parts, quality products, 3 coats of paint (versus someone else who might do 2) – all show the value add.
In Summary…
It takes years to build a good reputation and not long at all to lose it. Reputation is super important long term for a successful business, and in today’s world of easy and open communication and social media, it’s easy for a disgruntled customer to share their bad experiences.
Clear pricing, clarity around what is needed or not, builds trust and long-term customer relationships. Those relationships equate to great reviews, lots of referrals and customers that keep coming back time and time again.
Also, be sure to communicate any price changes to existing customers if they use your service regularly and don’t usually get a quote. It might be asking them if they want a quote, or at the very least, alerting them that there is a price increase from XX date of 7%. I always recommend to my business coaching clients to have smaller price increases more often, rather than to skip a price increase for say 3 years and then have to increase say 20-30% because you simply cannot survive. You need to look after your business, but you also need to communicate well with your customers and clients, so in turn, you’re looking after them.
Great communication, good customer service and providing an excellent product or service will equate to the beginnings of a successful business. There are many other aspects, but this is just one area which can improve your business over time and keep repeat business occurring over and over.
If you’re wanting any information about business coaching Australia-wide – reach out to me via my Contact Page and enquire about a sample coaching session if you’re interested in accessing business coaching from me. My passion is your potential.
