Pricing Methodology
Last updated: 15 July 2026
This page explains exactly how VanHub calculates, displays, and collects the price you pay for every service. We believe pricing should be transparent, consistent, and fair — no hidden charges, no inflated quotes, no surprises after the work is done. This methodology applies to all 126+ services across our 8 categories.
Table of contents
- 1. Our Pricing Principles
- 2. What Makes Up the Price You Pay
- 3. How We Set Base Rates
- 4. Professional Rate Bands
- 5. Price Estimates vs. Final Price
- 6. City-Wise Pricing Tiers
- 7. What We Never Charge For
- 8. Refunds and Adjustments
- 9. How Professionals Get Paid
- 10. Price Updates and Notifications
- 11. Questions About Pricing?
1. Our Pricing Principles
Every price on VanHub is built on four non-negotiable principles:
- Transparency — the price you see before booking is the price you pay. We display the full breakdown including base rate, visit fee, taxes, and platform fee before you confirm.
- Consistency — the same service in the same city has the same base rate across all professionals. Pros cannot arbitrarily inflate their prices — they operate within VanHub-defined rate bands.
- Fairness to professionals — pros keep 88% of every payment. Our 12% platform fee covers payment processing, insurance, customer support, and platform maintenance — not shareholder dividends.
- No hidden charges — visit fees, diagnosis, and standard consumables are always included. If a part needs replacement, the pro shares a transparent quote before proceeding — you approve before any extra cost is incurred.
2. What Makes Up the Price You Pay
The total amount you pay for a service is the sum of several components. Here's the breakdown:
Base service rate
The standard charge for the service itself, set by VanHub based on the category, complexity, and average market rate in your city. This covers the professional's time, labor, and expertise for a standard job. Example: Electrician base rate in Mumbai = ₹250 (includes first 30 minutes of work).
Visit fee
A flat fee covering the professional's travel to your address and initial diagnosis. Already included in the base rate for most services — never charged separately unless you cancel within 2 hours of the slot (₹100 late-cancellation visit fee).
Materials & parts
If the job requires replacement parts (a new faucet, a capacitor for your AC, a new switch), the cost is added to your bill at actual market price — the professional does not mark up parts. You see the parts cost and approve it before the pro installs anything.
Additional labor time
If the job takes longer than the standard time included in the base rate (e.g., 30 minutes for a basic electrician visit), additional time is charged at a transparent hourly rate shown before booking. Example: ₹100 per additional 30 minutes for electrician services.
Taxes (GST)
All prices on VanHub are inclusive of 18% GST (Goods and Services Tax) as applicable to service marketplaces in India. The tax component is shown in your invoice breakdown — you never pay more than the displayed total.
Platform fee (for professionals)
VanHub charges professionals a flat 12% platform fee on the Service Fee (base + materials + additional labor). This is deducted from the pro's payout — customers do not pay this separately. It covers payment processing (2%), insurance (3%), customer support (2%), and platform operations (5%).
3. How We Set Base Rates
Base rates are reviewed quarterly and updated on the 1st of January, April, July, and October. Changes are announced 14 days in advance via email and SMS to all customers and professionals.
Base rates are not arbitrary. We calculate them using a data-driven methodology that considers:
- Market research — we survey local service rates in 80+ cities quarterly, collecting data from competitor platforms, local service markets, and government minimum wage notifications
- Professional input — our category managers interview 50+ professionals per category per city to understand fair compensation for their skill, time, and investment in tools
- Cost of living adjustment — rates are indexed to the city's cost of living index. Mumbai and Delhi rates are higher than Tier-2 cities for the same service
- Complexity weighting — services requiring specialized skills (AC repair vs. fan installation) have proportionally higher base rates reflecting training and certification costs
- Material cost tracking — for services involving standard materials, we track wholesale prices and adjust rates quarterly
- Customer affordability — we cap maximum rates to ensure services remain accessible. Our rates are 15-20% below the average local unorganized market rate
4. Professional Rate Bands
Pros cannot exceed their band's maximum rate. If a pro is found charging outside their band (via cash or off-platform), they are immediately delisted.
Professionals cannot set arbitrary prices. Each pro operates within a rate band defined by VanHub for their category and city:
Standard band (80% of pros)
The default rate band — pros charge the standard base rate set by VanHub. Most professionals fall in this band. Customers see a consistent price across pros.
Premium band (15% of pros)
Pros with a 4.7+ rating and 200+ completed bookings can charge up to 25% above the base rate. This rewards quality and experience. The premium is clearly labeled on the pro's profile.
New pro band (5% of pros)
Newly verified pros (first 30 days) charge 10% below the base rate to build their rating. This discount is funded by VanHub — the pro still receives the full standard payout.
5. Price Estimates vs. Final Price
When you book a service, you see an estimated price. Here's how the estimate relates to the final amount:
- Estimated price — shown before booking, based on the standard scope of the service. This is what you approve when you confirm the booking. Payment is authorized for this amount (not charged yet).
- On-site diagnosis — the professional inspects the job and confirms the scope. If the job matches the standard scope, the estimate becomes the final price.
- Scope changes — if the job requires additional work (extra time, parts, or a different approach), the pro shares a revised quote through the app. You approve or decline before any additional work begins.
- Final price — the amount charged after the job is complete. This can only be lower than or equal to the approved estimate — never higher without your explicit approval.
- Payment release — your authorized payment is captured for the final amount only. If the final price is lower than the estimate, the difference is refunded within 24 hours.
6. City-Wise Pricing Tiers
VanHub operates across 80+ Indian cities, grouped into 4 pricing tiers based on cost of living and local market rates:
Tier 1 — Metro cities
Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata. Highest base rates (benchmark = 100%). Example: Electrician base rate ₹250.
Tier 2 — Large cities
Pune, Ahmedabad, Jaipur, Surat, Lucknow, Kanpur, Nagpur, Indore, Bhopal, Patna. Base rates at 85% of Tier 1. Example: Electrician base rate ₹210.
Tier 3 — Mid-size cities
Visakhapatnam, Vadodara, Coimbatore, Kochi, Bhubaneswar, Mysuru, Mangaluru, Tiruchirappalli, Nashik, Aurangabad. Base rates at 75% of Tier 1. Example: Electrician base rate ₹185.
Tier 4 — Small cities & towns
All other serviceable locations. Base rates at 65% of Tier 1. Example: Electrician base rate ₹160. Ensures affordability in smaller markets while maintaining fair pro compensation.
8. Refunds and Adjustments
If the final price differs from the estimate, or if the service is not completed satisfactorily:
- Lower final price — if the job took less time or fewer materials than estimated, you're refunded the difference within 24 hours
- Pro no-show — full refund of the authorized amount plus ₹500 inconvenience compensation, and we arrange a replacement pro at no extra cost
- Incomplete work — if the pro leaves without completing the job, you're charged only for completed portions (pro-rated) and we arrange a free re-service
- Unsatisfactory work — raise a dispute within 48 hours. Our resolution team reviews and may issue a partial or full refund based on findings
- Material return — if unused parts remain (e.g., a pack of 10 screws, only 3 used), the pro takes them back and you're charged only for what was used
9. How Professionals Get Paid
Professionals can see a live payout calculator in their dashboard that shows exactly how much they'll earn per booking before they accept it. No surprises on their end either.
For transparency to both sides, here's how the money flows when you pay ₹500 for a service:
Customer pays
₹500 (inclusive of 18% GST). This is the only amount the customer ever pays.
GST remittance
₹76 (18% of the pre-tax amount) is remitted to the Government of India as GST. VanHub handles this — neither customer nor pro needs to worry about it.
Platform fee (12%)
₹53 is retained by VanHub. Of this: ₹11 for payment processing, ₹16 for insurance coverage, ₹11 for customer support, ₹15 for platform operations and development.
Professional payout
₹371 is transferred to the professional's bank account or UPI within 24 hours of job completion and customer confirmation. The pro sees this exact breakdown in their dashboard.
10. Price Updates and Notifications
Base rates are reviewed quarterly (January, April, July, October). If a rate for a service you've booked in the past 6 months changes by more than 10%, we notify you via email and SMS 14 days before the change takes effect. Professionals are notified of any rate changes affecting their category at least 30 days in advance. Historical pricing data is available on request — email pricing@vanhub.pro for a breakdown of any service's rate history over the past 24 months.
11. Questions About Pricing?
If you have any questions about how pricing works, believe you were overcharged, or want to report a pricing violation:
pricing@vanhub.pro
Phone
1800-VAN-HUB (1800-826-4827) — 7 AM to 11 PM, 7 days a week
In-app
Open your booking in the VanHub app → tap 'Raise a pricing dispute' → our team responds within 24 hours
Postal address
Pricing Department, VanHub Services, Office No 7, First Floor, Ram Pride Apartment, Laxminagar, Phaltan, District-Satara, Maharashtra 415523, India
Questions? Email legal@vanhub.pro
Back to home →