A handyman business can be a great idea if you’re a versatile person who enjoys helping others with problems around their homes. Not only will you encounter a diverse range of situations that challenge your skills, but you’ll also be valued by homeowners for your ability to provide solutions to their home-related issues. When it comes to handyman pricing, it can vary depending on the specific services you offer and the location where you operate.
Although your generous spirit has aligned you with a job that positively contributes to your community, you may be wondering how to charge for your handyman services. It can be quite hard to know how to charge your first clients when starting.
Here’s an ultimate guide to handyman pricing to make things easier for you.
Understanding Handyman Pricing: Hourly Rate vs. Flat Rate
Any handyman wonders which pricing model is better for their business. However, it depends on which type of handyman you are. An hourly rate is better if you’re specialized and don’t work for anyone who needs an odd job done.
A flat rate is a wonderful option if you’re a jack-of-all-trades looking to make an extra buck by fixing a leaky faucet or doing a simple paint job. Let’s highlight the pros and cons of each pricing model to help you make an informed decision.
Pros and Cons of Hourly Rate Pricing
An hourly rate is charging for the hours worked when offering your handyman services. Here are the pros and cons.
Pros Of Hourly Pricing
The benefits to charge per hour include:
Client Takes The Risk
Some clients don’t know what they want, making determining the project scope a bit hard. The client may leave out some important details when ordering handyman services. Handyman cost-per-hour billing allows getting paid for the extra work.
You keep working knowing that you’re going to get paid for the extra hours on the job. This may be hard if you gave the client a ballpark figure for the project beforehand.
No Worry About Blowing The Project Budget
You don’t have to ask yourself whether the project is going to be profitable when billing per hour. There won’t be any worry about changing the project scope or variable. Hourly billing ensures that you work within the client’s budget. It’s also helpful when you’re bad at estimating project costs.
Clients Understand Where Their Money Is Going
Hourly billing gives clients a better idea of where their money is going. The familiarity gives clients a chance to compare your project quote to those of other handymen.
Evaluating your value quickly speeds up conversations with clients making them more likely to sign your contract. This is because handyman cost-per-hour billing is clear and understandable to most clients.
Gives Customers Detailed Estimates
When estimating a project for a customer, giving how long the project is likely to take is very important. You can even give a specific breakdown of the cost of handyman services. Charging an average handyman hourly rate makes estimating the project easier.
Opportunity To Explain Your Value
Hourly rates are fairly easy for customers to understand. So, they are likely to ask some questions. You get an opportunity to explain to the client how your experience and expertise are worth the rate you’re asking for.
Confidence In Your Pricing
Knowing what your hourly worth is as a maintenance handyman is being honest and takes hard work to figure out. You will always stand firm since some clients may try to negotiate a lower rate. There won’t be any feeling as if you’re ripping clients off.
You’ll have done your homework to know that you’re giving them value for their money.
Cons Of Hourly Pricing
Here are the misgivings of charging hourly.
Need To Justify Your Time
You’re likely to face a hard time with clients, especially low-paying people, questioning you constantly to justify your rate. These may see some tasks as having the option to accomplish them faster. You’re likely to spend a lot of time explaining yourself throughout the project.
With experience, you’re likely to spend less time on a project. This will mean charging less for the same project because you completed it faster. A handyman’s hourly rate doesn’t give you the motivation to get better since you’re getting the same rate.
Disagreements With Clients
The concept of charging by the hour presumes that you’ll accomplish all tasks in 60 minutes. If you finish a task within less time, you can’t charge per hour. You’re likely to end up arguing over payment with the client or not get paid for the extra minutes.
Pros and Cons of Flat Rate Pricing
You can also charge the same amount for a particular service. Here are the pros and cons to charge a flat rate for your handyman services.
Pros Of Charging A Flat Rate
Here’s why to charge a flat rate
Charging a flat rate sets you up for more income and growth. You may not even have to do extra work. A flat rate rewards efficiency while handling handyman tasks. As time goes on and you become more experienced, you get more money for accomplishing tasks faster.
This is better than billing hourly where your income doesn’t increase when you accomplish tasks faster.
A flat rate is easier for clients to understand since they understand upfront what their project will cost. Apart from making budgeting easier, it eliminates haggling over how long the project is likely to take.
There won’t be confusion when a client is wondering how much a handyman charges to paint a room.
Considers All Project Aspects
Giving clients a flat rate for the project gives the client a bigger picture of the costs involved to complete the job. It’s easier to break down all costs including labor and supplies. The good is giving the client an accurate budget for the project to make decision-making easier.
Another wonderful benefit of charging a flat rate is the likelihood of being more profitable. The more efficient you become, the less time you spend on a task. This will give you more time to take on more projects that lead to earning more money.
A fixed fee for your handyman services guarantees that you can predict your earnings in a particular period or project. When having several retainer clients, it becomes easier to tell your monthly income for budgeting purposes.
Cons Of Charging A Flat Rate
Here are the drawbacks of a flat rate for maintenance handyman services.
Taking On Risk
A fixed-rate puts more risk on the handyman. There’s a risk of putting yourself in trouble if you don’t document all essential aspects of the project.
You must first understand the full scope of the project and break it down into phases before giving a client your flat rate. Anything new that comes up may lead to adjusting your price.
Potential Decline In Quality
The anticipation to earn more after accomplishing more projects encourages rushing. It’s tempting to rush or cut corners when trying to handle more projects in a short period. Sometimes, you may accept lower-rate projects to keep your business ticking over.
There’s a chance of ending up with tight profit margins which encourage cutting corners. Apart from finding yourself struggling to make profits, your reputation will take a hit.
Harder To Sell
Some clients find it easier to understand how much do handymen charge per hour. When you give them a quote for a flat rate, you’re likely to end up opening room for negotiations and haggling. The client may try to make you lower your price.
Estimating Handyman Costs: Factors to Consider
Being a handyman can be extremely profitable. When up and running, it can be difficult to figure out good estimations. Estimating will help you come to the right price for your services. Here’s a quick guide to the factors you must consider when estimating maintenance handyman costs.
Materials And Supplies
You have to put together a list of materials and supplies to do a home repair job. There are various options to calculate how many materials you’ll need for the project such as using a home repair cost estimator or a specialized app.
The right tool will determine the materials you need to fill a particular volume according to types such as wood, brick, or concrete. An ideal tool estimates projects accurately and speedily. It must accommodate the amount and type of materials including the level of conversion costs.
Handyman jobs are small, medium, or large. Small jobs require less time and materials while large jobs need more time and specialized tools. You must factor in these when setting the price for your professional services.
Some materials and supplies you need to complete handyman jobs include:
- Nut and bolts
- Measuring tape
Some jobs require additional materials and tools that you’ll have to purchase yourself. You’ll have to adjust your handyman rates to include the extra cost and time spent.
Time and Labor
You must include time and labor when pricing your handyman jobs. Even when you’re doing the job alone. Include all labor costs into your team’s hourly rate when you have one. A labor cost estimator comes in handy to determine employee rates.
Overtime billing rates or specialized labor also determine how much handymen charge. Other labor-related costs that determine the final costing include:
- Workers compensation insurance
- Business Insurance
- Business management software
You also need to estimate how long the repairs will take. Small jobs such as hanging a picture, replacing a light switch, or repairing a leaky faucet take an hour or two. Medium jobs such as hanging a new door, repairing drywall, or hanging shelves take two to four hours.
When determining the handyman’s hourly rate, you must factor in the time you’re expecting to spend at the client’s premises. Also include the time spent purchasing materials for the project, traveling to and from the client’s premises, and time spent on project coordination.
Complexity Of The Job
Handyman jobs are not the same. Some are more complex than others, making them cost a bit more. Examples of complex handyman jobs include:
- Repairing damaged gutters
- Drywall installation
- Laying tiles
- Deck construction and repair
- Replacing fixtures
Handling these jobs requires a knowledgeable and experienced handyman. Possessing highly sought-after handyman skills leads to higher pay. Be prepared to show the client that you’re qualified and understand the project scope.
Avoid accepting jobs where you lack the appropriate skills or don’t have a license.
You’ll only end up denting your credibility and reputation. Understanding the project is key to getting the correct estimate for the project’s total costs.
Pricing for Handyman Services: How to Set Your Rates
Whether you’ve been in business for some time or just starting, knowing how to set rates for your handyman services is very important for your success. You may have a variety of skills but don’t know how to set prices for them.
Well, here are a few pointers you could use to set your prices.
Market Research and Competitive Analysis
Look at your competitors to see how much they charge for their services. It gives a feel of the price range and how much the local market is willing to pay. Consider all kinds of competitors before focusing on direct ones offering similar services to yours.
From the range of prices, note the difference between who charges the lowest and the highest. Those charging low are likely to be new and less experienced compared to those charging premium rates. These are likely more established with years of experience in the industry.
The rule of thumb is to set your prices in the middle range. Charging too low may not cover all your operating expenses. And, overcharging may chase away potential customers.
Determining Your Profit Margin
The profit margin is the money you make after covering all costs but before adding any taxes or interest. It shows how well your business is performing and whether your expenses are increasing or decreasing.
A shrinking profit margin means your expenses are increasing. You’ll have to understand why, how, and when to find solutions. Tracking your profit margin allows understand how your operation costs change positively or negatively.
Tracking profit margins allows staying ahead of issues including market changes or cost increases that affect your business. It also allows for identifying jobs that bring in the most money. The margins show how your business is performing and your ability as a manager.
Adjusting Your Rates for Different Job Types
Lastly, you must charge different rates for different job types. Have a minimum service fee that covers your expenses. This mitigates handyman pricing problems for jobs that you complete earlier than expected.
Consider an emergency call-out charge for some jobs. A customer may call you when having a leaky faucet in the middle of the night. You can’t charge them the same as for regular jobs. You also need a handyman pricing spreadsheet for small, medium, and large jobs.
Bigger jobs are more profitable although they need special permits and licenses.
Here is a guide on how you can classify handyman jobs.
|Average handyman cost
|– Little to no tools needed
– Includes simple tasks like TV mounting, toilet installation, and thermostat replacement.
|One to two hours
|$50 to $240
|– Requires power tools
– Includes labor-intensive tasks such as fixing a drywall section, fence repair, and sink installation.
|Up to five hours
|$250 to $500
|– Requires power tools, hand tools, or heavy equipment.
– May include renovation or remodeling work such as interior painting and floor installation
– May require certification or a permit
|Over five hours to several days
Job Management Software for Handyman Services: Tips and Best Practices
We all want the best for our businesses. It’s human nature to go a step above and beyond in our daily routines for clients to be happy with our work. We are always looking for ways to improve and solutions to problems that may arise.
One of the smartest decisions you’ll ever make for your business is implementing job management software. However, the last thing you need is to hassle with software that doesn’t deliver. Great software will help you with cash flow, job management, and getting tasks done on time.
Here are the best practices for choosing the right handyman services software.
Choosing the Right Software for Your Needs
Handyman software is a tool for handymen to manage and organize their businesses efficiently. There are various options on the market but you need one that matches your business needs. When selecting handyman software, look for features including:
- Sending estimates and invoices with an option to collect payments
- Storing customer information such as job history and contacts
- Keeping track of where your team is or is supposed to be
- Processing credit card payments
- Accounting for bookkeeping and staying organized
A good idea is to get a single app that offers all these features. One that offers a trial version before investing in a pro version is a great idea. It allows for testing the app’s features before you invest your money.
Integrating Job Management Software into Your Workflow
Every step in your business triggers another task in the process until you get the job done. Workplace processes incorporate various steps which are complex and managed by people with knowledge and experience.
Fortunately, you can optimize and standardize these processes by integrating job management software into your handyman business workflow. It limits human error and reduces complexity in business management.
Your business will also benefit from the elimination of data and knowledge silos when the people who know how to manage those tasks aren’t available. Workflow software encourages efficiency and eliminates the hassle of switching from one application to another to accomplish tasks.
Streamlining Communication with Customers
A handyman business is more than delivering exceptional services. This business just like any other revolves around customer expectations. You need to maintain customer relationships to grow your business.
Any forward-thinking handyman business owner must offer quality services and positive experiences. Delivering expertise, communication, and proactivity are the most important customer support and service qualities.
Field technicians are the primary source of communication and they need to be well-equipped so customers don’t have to call the back office for additional support. This is very important since initial interaction with customers influences brand perception and overall service satisfaction.
Any small mishap may cause disastrous effects. You must provide your technicians with the right tools and expertise to give customers an exceptional experience. Using handyman software such as Field Complete builds a customer-centric handyman business.
Other perks that come with the software include:
- Managing scheduling and routing
- Boosts customer engagement
- Document digitization
- Offers remote assistance
- Access to real-time information about customers and services
- Getting an edge over the competition
The Importance of Effective Pricing and Job Management for Your Handyman Services
Effective handyman pricing is accurately connecting your service value to your customer’s willingness to pay. You need a handyman price list that supports your business goals and customer acquisition strategy.
Pricing can draw or drive people away from your handyman business. An effective pricing strategy has clear benefits including:
- Symbolizing value- customers associate cheap services with being shoddy and expensive services with a higher value.
- Appealing to buyers – customers may not afford highly-priced services. An ideal price attracts customers better than your competitors.
- Confidence in your services – customers don’t usually have confidence in low-priced services.
A great job management tool allows a handyman business to use tools that ease assigning jobs, tracking timelines, and receiving notifications on projects. The tool allows creating quotes, planning, and managing jobs to automatically turn into invoices.
You can also keep all work in one convenient place to eliminate the need for paperwork. A job management tool streamlines business operations and lowers operating costs. It maximizes profits and saves time for other important tasks to get more attention.