The Repeat Customer Who Always Gets Your Cheapest Price (Even When You Don't Offer It)
By Dan Reeve — Working handyman and founder of SMASH Invoices. Built SMASH after losing $1,200 in uninvoiced jobs in a single year. He still takes on handyman work and uses SMASH on every job. About Dan →
Most sole traders charge their regular customers less than new clients, not because they agreed to a loyalty discount, but because they can't remember what they charged last time. When you quote from memory, memory rounds down. A customer you've worked with for years has seen every version of your pricing, remembers the lowest number, and expects consistency from that number. The fix is knowing exactly what you charged every customer, every time, before you open your mouth.
The six-job customer
I had a customer I'd done six jobs for. Great relationship. She always called. Always paid without drama.
It took me two years to realise I was charging her about 20% less than customers I'd never met.
Not because she'd asked for a discount. Not because I'd offered one. Because every time she called, I'd think "she's a regular, I won't overdo it," and I'd land on a number that felt right. The number that "felt right" for a familiar customer was always lower than the number for a stranger.
She was paying $150 for a job I was charging new customers $185 for. Same job. Same time. Same materials.
Six jobs. $35 undercharge per job. $210 total. Over two years. And I had no idea until I ran the actual numbers.
"I asked a mate of mine to look at my invoicing for a session. He showed me I had four customers I'd done more than ten jobs for, and all four were paying below my current rate. Not by agreement, just by drift. Never noticed until someone else looked." — Danny P., Gardener, Perth WA [PLACEHOLDER]
Why this happens
When a customer calls and you can't remember what you charged them last time, you guess. Your guess is anchored to their previous reaction to your price, if they seemed happy, you keep it there. If they seemed surprised, you round down a bit.
Over time, happy regular customers accumulate a discount you never agreed to. They haven't complained. They haven't asked for a lower price. They've just been priced below market because your memory is selective and you can't quickly check the history.
New customers get your current rate. Regulars get a mixture of your older rates and your subconscious "be nice" rounding.
The fix: look before you quote
Before you quote any repeat customer, check what you charged them last time. Then:
- If your rates haven't changed: quote the same
- If your rates have gone up: quote the current rate (a brief "I've had to adjust my rates a little this year" is all that's needed)
- If you realise you've been undercharging: adjust gradually, not all at once
SMASH Invoices stores a full invoice history per customer. Before you quote, open their profile. You see exactly what you charged on every job, when, and what it included. No guessing. No rounding down from memory.
Frequently asked questions
Is it wrong to charge long-term customers more than when I started? No. Rate increases are standard business practice. Most customers expect pricing to change over time with inflation and experience. A brief, honest explanation, "my rates have gone up a bit this year," is usually all that's needed.
How do I tell a customer I've been undercharging them? You don't need to say that. Simply quote your current rate for the next job. If they comment on the increase, confirm: "Yes, I've updated my rates." You don't owe anyone an explanation for charging a fair price.
What is the best way to track pricing history per customer? An invoicing app that stores all invoices per client with totals, dates, and job descriptions. SMASH Invoices shows each customer's full payment history, total paid, number of jobs, last invoice date, and all past invoices, in the contacts section. Check before every quote.
How often should sole traders review their rates? At least annually. Check what competitors are charging (Facebook trade groups, word of mouth), factor in material cost increases, and adjust accordingly. A 5–10% annual rate increase is generally accepted without pushback from established customers.
Should I offer loyalty discounts to regular customers? Only if you choose to and can track and control them. An unintentional loyalty discount, one that accumulates through memory drift without being agreed, is the worst of both worlds: you lose the money without the goodwill.
Know what you charged. Quote accurately. Every time. Start Free →
Internal links: Why knowing your customer's payment history makes you a better tradie · How read receipts changed how I follow up invoices