Knowing how to price handyman jobs at a reasonable level for you and your clients is more than just being fair with both sides; it is a strategy for your success as a contractor. To charge the proper price, choose an hourly or flat rate, consider your expenses, experience, materials, and distance, and assess the service needed and its duration, among other strategies.
You know the cost is not the only factor determining whether a homeowner will choose your service or other contractors. Still, it is undoubtedly one of the most significant considerations. Read this complete handyman pricing guide to understand if your price is right!
How To Price Jobs As A Handyman?
When determining price jobs for handyman service, choose between an hourly or flat rate, factor in your expenses and cost of living, consider your experience, calculate material needed, including travel distance, assess the services required, estimate the job's duration, offer a price range, research competitor pricing, consider offering group rates, and provide service packages!
Read more about each tip in the comprehensive list below!
1. Choose A Pricing Strategy
Deciding between hourly and flat-rate pricing is crucial. An hourly rate allows flexibility if a job takes longer than expected, but it can be less appealing to clients who want cost certainty. On the other hand, a flat rate offers a precise, upfront cost, making it easier to market, but risks underestimating the time needed.
2. Consider Your Cost Of Living
When setting your prices, a general tip for your business is to factor in your overall expenses, including rent, utilities, insurance, and other living costs. Your rates should not only cover these but also provide a profit margin.
3. Include Your Experience
Even if you are starting a contractor business, the level of expertise you bring to a job should influence your pricing. More experienced handymen can justify higher rates due to their skill and efficiency. Clients often associate experience with reliability and quality, making them more willing to pay a premium.
4. Calculate The Materials Needed
Always estimate the cost of materials required for the job and include this in your pricing. Account for quality and quantity, and consider a small markup for sourcing and handling these materials, as this is part of the service you are providing.
5. Include The Distance
Consider the travel distance to the job site in your pricing. Longer distances mean more time and fuel costs, which should be factored into your rate, especially if the job is outside your usual service area.
6. Determine Services Needed
Clearly define the scope of services required for the job. Different tasks might demand different skills, tools, and time. Pricing should reflect the complexity and variety of tasks involved, from basic repairs to more specialized services.
7. Estimate Time Spent
Accurately estimating the time needed to complete the job is critical to fair pricing. Doing so will guarantee you have been compensated adequately for your time and help avoid underpricing, which can lead to rushed work or financial loss.
8. Offer A Price Range
Providing a price range gives clients a flexible expectation, covering potential variables or unforeseen challenges that may arise during the job. This transparency helps improve the first impression, build trust, and prepare clients for possible adjustments.
9. Research Competitor Pricing
Understanding what other handymen in your area charge can help you position your services competitively. Aim to offer a balance of quality and cost that aligns with market standards while still reflecting the unique value you provide.
10. Offer Group Rates
Offering discounted rates for group bookings or services provided to multiple clients in a neighborhood can be an effective way to secure more business. It reduces your travel time per job and increases overall revenue through bulk work.
11. Provide A Service Package
Creating service packages for regular customers encourages them to repeat business and can help stabilize your income. These packages could include routine maintenance or bundled services at a discounted rate, fostering customer loyalty.
How Do You Determine The Price For Handyman Jobs?
Check out the table below to see the average pricing of the five most common handyman jobs, both hourly and flat rate.
With this knowledge on how to price handyman jobs and the connections homeyou pro can provide you, you will be able to attract and keep more and more clients!
Comments