Are you thinking about opening up a service-based business and can’t figure out what rate you should charge?
Well, in this short post, we’re going to introduce to you the idea of using average wage statistics to help you determine the right rate for your service.
If you want to run a service-based business, it can be tough to determine what rate you should charge for your work.
Your first step should always be to start by examining what your competitors charge for the same service(s) that you intend on offering. But, getting this information is not always easy—competitors’ rates may not be published and they may vary from customer to customer. So, in practice, this route typically will not give you all of the information that you need to set the right price.
As your second step, we recommend that you research the average wage of jobs that best reflect the type of work you will be performing. Doing this is easy!
Go to your government’s resource on average wages.
For Canadian businesses, this can be found at the Government of Canada’s “Working in Canada” website, found here.
For American businesses, this can be found at The Bureau of Labor Statistics’ “Occupational Employment Statistics” webpage, found here.
Search for the occupation that best resembles the type of work you will be performing and the area where you will be performing it.
For Canadian businesses, you’ll notice drop-down lists will appear as you enter job titles and locations. Rather than typing either in full and searching, we recommend that you choose from the drop-down list instead. If you’re not satisfied with the options that come up, simply try different words that describe what you’re looking for until something more appropriate appears.
For American businesses, start by clicking on the state where you will be performing your service. From there, scroll down until you see a series of links that list the main types of occupations in the state you selected. Choose one that best describes your business’ service.
For Canadian businesses, the occupation’s profile will give you plenty of useful information not only on wages, but also: job descriptions, job duties, education and job requirements, and much more.
For American businesses, the occupation’s profile will also give you a great deal of useful information in addition to the job’s wages, including: national estimates for the occupation; an industry profile for the occupation; and a geographic profile for the occupation.
And that’s it! This information should help you gauge if your rates are at an appropriate level!
(1)- The Government of Canada’s “Working in Canada” website:
(2)- The Bureau of Labor Statistics’ “Occupational Employment Statistics” webpage:
Links to More Information
For Canadian readers, as we alluded to above, the Working in Canada website is an outstanding resource for businesses. We highly recommend that you familiarize yourself with it—it will definitely come in handy for job descriptions, determining appropriate employee wages, and much more.
For American readers, The Bureau of Labor Statistics’ website is also a very useful resource. Like the Working in Canada website, we recommend that you familiarize yourself with it and its resources.
Each of these sites should offer you more than enough reading material! :)
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