Estimating Handyman Jobs in 2022 – Pricing Strategy

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According to Zippia, there are now roughly 91,120 Handyman Contractors employed in the United States.

Are you just starting out as a self-employed handyman or running a business?

📝Key Takeaways:

  • You need to know not only the professional expense but personal to be in the business.
  • Estimating gets accurate with experience.
  • Negotiating your prices does more harm than good to your brand image.

In either case, determining your handyman prices by the job is imperative for the success of your career.

Here’s why:

Pricing influences how much profit you make, how rapidly you can expand, and how well you compete in the industry. So learning how to do it correctly will help your handyman business thrive.

People will assume you’re unskilled or that there’s a trap if you price yourself too cheaply. Therefore, you will not be able to sustain yourself or your business.

If you set your hourly handyman rate too high, potential customers will be forced to look around for estimates from others.

Now, what’s the right way of estimating handyman jobs then?

To help you figure that out, we have created a list of top strategies that will help you in estimating the different work of a handyman easily.

Let’s dive in!

Tips to Price Handyman Jobs for Profit

1. Calculate your personal and business expenses

Expenses for a self-employed handyman can be broken down into two categories:

calculate your expenses

  • personal expenses
  • professional expenses

Personal expenses include mortgages, loans, rent, utility bills, automobile payments, etc. Estimate these figures by keeping track of your monthly expenses and living expenses.

Professional or business expenses include basic tools for handyman work, vehicle, business cell phone, handyman business cards, or a software that can manage clients and calculate estimates.

These costs can be estimated using the same client management software, and it can be used to track business expenses, overhead costs, labor costs, material costs, etc.

You, of course, want to set handyman rates that will generate enough revenue to pay for all your business and living expenses. Therefore, you should be mindful of these above estimates if you are a self-employed handyman or run a small handyman business.

2. Know how long would the job take

You should be aware of the average time required by other handymen to complete particular home repair jobs if you want to estimate your own production rate.

A production rate is just the average amount of time it takes you to complete a task.

Production rates are sometimes determined by estimating how much work you can accomplish in an hour. Other times, it can be determined by simply monitoring how long it takes you to finish a whole task.

Time yourself multiple times during the course of a specific job to determine your production rate.

Keep in mind that you are not estimating the time it takes you to complete most handymen jobs. You are estimating the time it takes you to complete a single task, such as sink installation.

Calculate the average of several sink and toilet installation jobs.
Then compare it to a national average to discover where you stand in comparison to everyone else. This will assist you in determining your level of expertise and competitive edge in the industry.

Here are some examples of average job times that can take less than two hours or over four hours:

1-2 hours:

Replacing thermostat

Hanging a heavy picture

Repairing leaky faucets

2-3 hours:

Small jobs of drywall repair

3-4 hours:

Replacing windows

Hanging a door

Woodwork repair

4+ hours:

Repairing a wall

Installing heating and air conditioners

Laying carpet

3. Different types of jobs, different rates

A handyman’s job is a broad term that encompasses nearly everything under the sky.

Your knowledge and licenses can lead to a variety of handyman work ranging from common handyman services, and drywall installation to more specialized trades such as technical building work and general contracting services. And the more difficult and skilled the task, the more the handyman charges for the service.

It is, nevertheless, critical for your credibility and long-term success not to accept a position for which you are not qualified or licensed.

However, if you plan to work as a general contractor, your estimate must include exact prices for hiring HVAC professionals, plumbers, and electricians, for instance.

That’s still preferable to hiring someone to paint a house that has water damage and then having to pay the roofers and drywallers out of your painting revenues, or worse, out of your own pocket.

When determining your handyman prices by the job, bear in mind any specific tools or equipment required.

To complete the task, you might require power tools and have to rent specialized equipment, just like when you subcontract out different trades. You might even have to hire someone to run the equipment.

Equipment such as backhoes, jackhammers, and power washers are costly and must be factored into estimates.

4. Set your markup

Another great way that will help you estimate handyman jobs is to learn how much to mark up your jobs.

For a handyman, it’s definitely a skill to know how much to mark up their jobs. Your markup should cover both your margin and your overhead expenditures. Part of this entails figuring out the exact labor cost. It also includes keeping track of other business expenditures.

A robust estimate software will take these data into account, enabling you to rest assured knowing that your overhead expenses are covered. It’s always a good idea to leave yourself little room for flexibility in case something unforeseen comes up and affects your work.

Don’t be caught off guard and discover that you haven’t generated a profit. It’s always better to be safe than sorry.

Here are some examples of common handyman expenses:

  • Monthly living expenses
  • Vehicle mileage and maintenance
  • Tools
  • Health and liability insurance
  • Advertising
  • Office supplies
  • Website costs
  • Licensing fees
  • Phone and internet
  • Taxes: self-employment, state income tax, federal income tax

These expenses must be covered by the hourly rate you set.

Remodeling suggests a rate of 35% profit margin.

To enable you to reach this stage, consider minimizing your overhead expenses. It can even help to call your cellular phone and internet service providers to confirm that you are getting the best deal.

Small elements can often have a big impact on your outcome. That is why using a handyman prices estimator software to verify that the numbers you are computing are correct can be beneficial in the long term.

With a reliable estimating software, you can ensure that you are making the best decisions for your company.

5. Refer to your previous estimates

Evaluate your cost estimates for past projects that were similar. This will assist you in calculating a rough estimate that you can share with the prospective client.

This can also help you determine whether it’s worthwhile to take on the task based on whether previous initiatives were profitable.

When comparing previous jobs to your present quotation, the size and scope of the home repair service are vital.

You cannot compare more complex and demanding electrical work with your prior services if they were solely for home repairs like repairing a dripping faucet or replacing malfunctioning downlight globes.

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6. Know your competitors

You should research what your competitors are charging in your area. This will assist you in getting a sense of the area’s price ranges and service offers.

know your competitors

Look for competitors on sites such as:

  • Home Advisor
  • Facebook Jobs and Marketplace
  • Angie’s List
  • TaskRabbit
  • Thumbtack
  • Google search

To get a well-rounded picture of the handyman sector in your town or city, as a handyman business owner, you need to look at the types of competitors. Then, begin looking for major rivals who provide similar services to you.

You’ll most likely see a wide range of handyman prices. It’s critical to understand the distinction between those who charge low hourly rates and who charge high hourly rates.

A handyman charges low when they are inexperienced or new. On the other side, an experienced and reliable handyman understands business and has built it with years of experience in different industries, such as carpentry and restoration.

You should strive to set your own handyman prices such that they fall somewhere in between. If you don’t charge appropriately, you might not be able to manage your own costs. If you overcharge for your handyman services, you may overrate them and lose clients.

7. Don’t negotiate for discounts

You may believe that offering discounts to your customers is a fantastic strategy to beat the competition. In the long run, however, you will be doing your home repair business more damage than good.

Offering discounts makes you appear incompetent, decreases your professionalism, and harms the cash flow and longevity of your business.

On the other hand, increasing your handyman prices might even work to enhance your cash reserve. A 0.5% price rise is unlikely to be noticed by your clients, and your bank account will appreciate you.

If a prospective customer forces you for a discount, tell them you’ll look into it and get back to them later. Otherwise, the customer might simply request that you reduce the scope of the project. This means you’ll have to take on more jobs, but at least you’ll be earning enough profit.

After all, you shouldn’t be selling your jobs just on the basis of their cost. Remodeling says that you should also market yourself depending on the value you bring.

Being consistent and providing outstanding customer service would most certainly result in more satisfied customers than offering a cheap cost.

It is a good idea to evaluate your chosen payment choices. Some credit card purchases have larger surcharges, so offer the best payment options for your project.

These aspects may appear insignificant, but they will all add up to a final estimate of handyman prices that will lead to the maximum profit margin for your efforts.

Frequently Asked Questions
  1. What is the hourly rate for a handyman?

    According to HomeAdvisor, a handyman’s hourly rate is an average of $60 to $65 in the United States, while the handyman’s rate can vary from $55 to $75 per hour for an independent and skilled handyman.
    Although the average handyman’s hourly rates can climb up to $77 per hour and charges for expert handyman services can reach $125 per hour. Finally, the hourly rate will be determined by your location and the handyman’s level of experience.


  2. When starting a handyman service, how much should you charge?

    You won’t make as much in your starting days as an experienced handyman. You must take the time to ensure that you are completing the task correctly.

    Therefore, your hourly rate may not be very high at first either. However, ensure that you are covering all of your bills and making at least some profit from your work.

    It’s also crucial not to take on jobs you’re not qualified for and cross your standard limits. Because most businesses rely on repeat customers and referrals, being honest and skilled is critical to your long-term success.

    The key is to be patient and understand that developing a business or building a career takes time.

    To learn how much should be your hourly rate for your handyman services by the task, talk to experienced handymen, visit handyman websites, and study a pricing strategy guide like this one.


  3. What is the going handyman charge for a job?

    Before you can determine your handyman’s prices by the work or the hourly rate, you must first know your expenses.

    • Find out the going hourly rate for the same job
    • Calculate your target hourly rate+ profit

    Include the following expenses:

    • Workers with specialized and technical skills and other subcontractors
    • Materials
    • Costs of labor
    • Travel expenses and additional markups
    • Special tools and equipment

    Your estimated price for a handyman job will also be determined by the nature of the work and its complexity.

    With all of these components in mind, you have a good chance of creating estimates that will win clients and boost your business!

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Author Bio
Jeel Patel
Jeel Patel
Founder

Jeel Patel is the Founder of InvoiceOwl and is the main curator & writer of the content found on this site. With ideals of quality, commitment, and perseverance, he believes in creating lasting business relationships with the clients.

United States

Manassas

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