Setting Your Hire Price

Setting the right hire price helps your equipment attract bookings while giving you a fair return for making it available. Your price should reflect the equipment’s value, condition, demand and local market—not simply what you originally paid for it.

This guide will help you set a competitive and sustainable price for equipment listed on Local Hire Marketplace.

1. Research Similar Equipment

Before choosing a price, compare similar equipment available through:

  • Local Hire Marketplace
  • Equipment hire businesses in your area
  • Local equipment owners offering comparable items

Compare equipment with a similar brand, capacity, age, condition and included accessories. Commercial hire businesses may include services or support that private owners do not, so use their prices as a guide rather than copying them exactly.

2. Consider the Equipment’s Value and Condition

Your hire price should reflect the equipment’s current replacement value, not only its original purchase price.

Consider:

  • The cost of replacing the equipment today
  • Its age, condition and maintenance history
  • The quality and reputation of the brand
  • How often it is likely to need servicing
  • Expected wear from normal use
  • The value of any attachments or accessories included

Newer, specialised or well-maintained equipment may justify a higher price. Older equipment can still attract bookings when it is safe, reliable, well presented and priced fairly.

3. Check Local Demand and Availability

Location can affect the amount Hirers are willing to pay. Equipment that is difficult to find locally may attract a higher price, while common items may need to be priced more competitively.

Demand may also change during the year. Gardening equipment may be more popular during growing seasons, while party, camping or cleaning equipment may be in greater demand around holidays and major events.

Avoid making sudden or excessive price increases during busy periods. Consistent and reasonable pricing helps build trust and encourages repeat bookings.

4. Choose Your Hire Rates

Offer rates that reward longer bookings while still covering your costs. Local Hire Marketplace allows Owners to set rates for different hire periods.

Short-term hire: 1–3 days

Set a competitive daily rate for quick jobs and weekend projects. Your one-day rate will usually be the highest daily rate because each booking requires preparation, handover, inspection and cleaning.

Medium-term hire: 4–7 days

Consider offering a modest discount compared with the one-day rate. This can encourage Hirers to keep the equipment for the full project rather than making several short bookings.

Long-term hire: 8–13 days

A larger daily discount may make longer bookings more attractive while reducing the time you spend arranging repeated handovers.

Marathon-term hire: 14 days or more

Set a strong long-term rate that remains worthwhile after allowing for maintenance, servicing and the period the equipment will be unavailable to other Hirers.

Longer bookings should provide better value, but your discounted rate must still cover the equipment’s operating costs and expected wear.

5. Allow for Local Hire Marketplace’s Owner Service Fee

Local Hire Marketplace charges Owners a 6% service fee on the hire amount. This fee helps support secure payments, platform operation and customer support.

When setting your price, consider the amount you want to receive after the fee has been deducted.

Example

  • Hire amount: $100.00
  • 6% Owner service fee: $6.00
  • Estimated Owner payout: $94.00

If you want to receive approximately $100 after the service fee, the hire amount would need to be about $106.39. You may choose to round this to a simple, competitive price.

The final payout may also be affected by approved refunds, adjustments or other amounts applying to the booking.

6. Price Consumable Use Fairly

Some equipment uses consumables or components that wear down during normal operation, including:

  • Saw blades and cutting discs
  • Drill bits
  • Sanding sheets
  • Fuel, gas or oil
  • Cleaning chemicals
  • Batteries or other replaceable items

Decide whether reasonable consumable use will be included in the hire price or charged separately.

If a separate charge applies, clearly explain:

  • What is included
  • How additional use will be measured
  • What the Hirer may need to pay

Where practical, include normal consumable wear in the hire rate. This keeps pricing simple and helps avoid disagreements after the booking.

7. Keep the Security Deposit Separate

A security deposit is not part of your hire income. It is intended to provide security if the equipment is not returned, is damaged beyond fair wear and tear, or other agreed costs arise.

Set a reasonable deposit based on factors such as:

  • The equipment’s current replacement value
  • Its theft risk
  • The cost of its accessories or attachments
  • The potential cost of significant damage

An excessive deposit may discourage bookings, while a deposit that is too low may not provide suitable protection.

A deposit should never be used to make the advertised hire price appear artificially low.

8. Clearly Disclose Additional Charges

If you offer optional services or may apply additional charges, explain them clearly in the listing before a booking is accepted.

These may include:

  • Delivery and collection
  • Fuel or battery charging
  • Optional attachments
  • Excess cleaning
  • Late returns
  • Missing accessories

All charges should be reasonable, transparent and consistent with your listing, Local Hire Marketplace’s requirements and the agreed booking terms.

Avoid hidden or unexpected fees.

9. Use a Simple Pricing Example

Suppose a pressure cleaner has a current replacement value of $900 and comparable equipment hires locally for between $60 and $90 per day.

After considering its age, condition and included accessories, the Owner could set:

  • 1 day: $70
  • 3 days: $189 — equivalent to $63 per day
  • 7 days: $392 — equivalent to $56 per day
  • 14 days: $686 — equivalent to $49 per day

These figures are examples only. Your price should reflect your equipment, location and current market conditions.

10. Review Your Price Regularly

Your first price does not need to be permanent. Review your listing after it has been active for a while.

If you receive many views but few booking requests, compare your:

  • Price
  • Photos
  • Description
  • Deposit
  • Booking requirements

with similar listings.

If demand is consistently strong and your calendar is regularly full, a modest price adjustment may be appropriate.

Also review your price when:

  • The equipment’s condition or value changes
  • Maintenance or consumable costs increase
  • You add or remove accessories
  • Local demand changes
  • Comparable hire prices change

Quick Pricing Checklist

Before publishing your listing, check that you have:

  • Compared similar equipment and local hire rates
  • Considered the equipment’s current value, condition and demand
  • Set competitive short-, medium-, long- and Marathon-term rates
  • Allowed for the 6% Owner service fee
  • Explained any consumable allowance or additional charges
  • Selected a reasonable security deposit
  • Kept your pricing clear, simple and easy to understand

Fair and transparent pricing helps you attract more bookings, earn positive reviews and build a trusted hire business on Local Hire Marketplace.

Important

This guide provides general information only. Owners are responsible for setting their own prices and meeting any applicable tax, GST, consumer law and record-keeping obligations.

Consider obtaining independent professional advice for your circumstances.