How much should you charge per hour as a handyman?
There is a right answer, and in this pricing guide, I will show you exactly how to figure that out. And by the way, this process will help you whether you provide handyman services, carpentry, plumbing, or any other service.
But first, let’s address a big issue – handyman hourly rates are all over the place. Some demand well over $100 per hour because they know what they’re doing and do it efficiently, professionally, and immaculately. Then, other people charge a measly $10 per hour under the table.
So, where do you fit in on this scale? What’s a good rate to base your service pricing on as a self-employed handyman or contractor?
That’s what I will answer in this article. I will lay out a step-by-step process you can follow to help nail down a rate that will keep your business profitable and your schedule full.
Whether you charge by the hour, quote each job in person, or have flat-rate pricing for common services, follow these steps to price for success.
Contents:
How to Determine Your Hourly Rate
The primary purpose of a business is to generate a profit and sustain your lifestyle. You must charge enough to do those two things. Otherwise, your business is NOT sustainable. I don’t care how cheap the competition is.
If you don’t charge enough, you’ll either kill yourself working too many hours, or you won’t make enough money. Then, your business will fail, and you’ll be forced to get another job.
So, the only real rule for setting your rates is to charge enough to stay in business and pay personal bills at a minimum. This is called Cost-Based Pricing, and it’s simply a way to guarantee that you make a decent profit.
We will use Cost-Based Pricing to determine the minimum you must charge to cover business and lifestyle expenses.
Can you charge more than that? Of course you can, and I recommend that you do!
But the first step is to figure out the minimum rate you must charge to run a sustainable business. Let’s do it.
Step #1 – Calculate Your Cost of Living
How much does it cost for you to live comfortably and happy?
Maybe you already know the answer to this question. This step is easy if your current salary already hits the sweet spot. But if not, here’s how to calculate your cost of living.
Write down a list of your expenses and an approximate monthly total for each. Spend time and try to think of all of your expenses, even the ones you only pay once a year, like vehicle registration, for example. Assign a monthly value to each and add them into an Excel spreadsheet (or write them down).
Make sure not to leave anything out. Include entertainment and even a little extra for unexpected expenses. Here, the idea is to see how much it costs you to live your “normal” lifestyle. If saving money for retirement is part of your lifestyle (it should be), include that, too. Need to pay for health insurance? You’ll want to include that as well.
While there are benefits to going through this process in detail, you can simplify this step by simply taking your current or recent salary and setting that as your cost of living (assuming you are making enough to pay the bills.)
Step #2 – List Your Business Expenses
Next, list business expenses and assign a monthly value to each expense.
You can save time and make calculating your hourly rate a thousand times easier by downloading a free spreadsheet I’ve created. It includes all common handyman business expenses and does the math for you. Click here to download the Handyman Hourly Rate Calculator now (It’s free).
While listing your business expenses, make sure to include everything. Here is a list of some common handyman business expenses. You can also read how much it will cost to get started.
Step #3 – Estimate Your Taxes
Now it’s time to determine your tax responsibilities as a self-employed contractor. I’ve listed the common taxes for citizens living in the US directly below. However, this list is not all-inclusive, and you may have other tax obligations outside of these (like state income tax), depending on where you live. I am not a tax professional and only provide the following information as an example. Your tax obligations may differ, and you may consider consulting with a professional.
Self-Employment Tax – Self-employment taxes are currently set at 15.3% (source: irs.gov). That 15.3% covers both Social Security and Medicare taxes. As an employee, your employer pays half of these taxes, and half are automatically deducted from your paycheck. As a self-employed business owner, you must pay all 15.3% of your gross profits.
Federal Income Tax – This is the same tax you paid as an employee. As you probably already know, this tax depends on your yearly earnings. The more you make, the higher the percentage of taxes you will pay (assuming you don’t have a bunch of tax deductions). To figure out your hourly rate, you must estimate this tax. For most handypersons, this will end up being about 15-20% of your profits after you pay self-employment taxes.
State Income Tax – Check with your state to determine if you must pay this tax.
Other Taxes – There might be other taxes depending on where you live. For example, there are additional taxes to cover healthcare in Canada. Most cities will also collect taxes. Although this is small, you’ll want to include that as well.
Once you have an estimated percentage for each tax, add them to get your total tax percentage.
Let’s say your taxes are as follows:
Self-employment: 15.3%
Federal Income Tax: 15.0%
State Income Tax: 0%
Total Taxes = 30.3% (example only)
Of course, there are several ways to lower your tax burden, but don’t get caught worrying about that right now. It will just be a nice bonus for the future once your business is established.
Step #4 – Determine Your Billable Hours
The next step is determining how many billable hours you will work each month (assuming you have enough customers to fill your schedule).
You may be thinking that 40 hours is a good estimate. In reality, however, it is more realistic to only bill between 25 and 35 hours per week with all the quoting, following up, driving time, etc.
Sure, you might work 40 hours per week or more as a full-time handyman, but you won’t be paid for every minute of that. You are only paid for the time you are working for a customer.
If you are starting your business part-time but plan to go full-time eventually, base your calculations on how many hours you would work if operating full-time.
The goal here is NOT to see how many hours a week you can work, but how many hours it is reasonable to work without consuming your life. After all, you’ve started this business to have some freedom. Enjoy that freedom and set a limit on your billable hours.
I set my billable hours to 25 weekly when I started my handyman business. This freed up time to improve my business, have a personal life, and run this website. I’ve based my workload on my personal lifestyle design. I recommend you do the same.
Step #5 – Crunch the Numbers
Now that you understand your costs and reasonable working hours, you can do some quick calculations to see how much you need to charge to live the lifestyle you have designed.
I’ve created an hourly rate calculator to do the math for you. Just click here to download “The Handyman Hourly Rate Calculator” (It’s Free). Simply tweak a couple of numbers, and BAM, out pops a customized hourly rate for your unique situation.
If you don’t want to download the free rate calculator above, the math goes like this:
Total Monthly Living Expenses = L
Total Monthly Business Expenses = B
Total Billable Hours Per Month = H
Total Taxes (%) = T
Your Minimum Hourly Rate = L/[H * (1 – T)] + B/H
Example: So let’s say you need to make $5,000/month to live, expect your business expenses to be about $1,200/month, estimate your taxes at about 30%, and plan to work about 32 billable hours per week.
L = Monthly living expenses = $5,000 (about $60K per year)
B = Monthy business expenses = $1,200
H= Monthly billable hours = 128 (about 30 per week)
T = Total taxes = 30% = 0.30
Minimum Hourly Rate = $5,000/[128 *(1-.3)] + $1,200/128 = $65.18/hour
That means you’ll want to charge at least $65 per hour for your services. If you don’t, you’ll either sacrifice the quality of your life or slowly build up debt.
This is a great way to figure out the minimum you must charge, which is probably higher than you thought. But the truth is that you’ll probably end up charging even more than this. In fact, most handymen I consult with make at least $85 per hour on average.
Step #6 – Evaluate and set your rates
Now you know the minimum hourly rate you must charge to make your efforts worthwhile.
However, you’ve yet to answer the question, “How much should you charge?” And this is where you will run into the same challenge every new service provider faces.
Will customers pay that amount? Or, maybe they will pay even more?
If you’re like 99% of people who start a handyman business, answering this question will be difficult and uncomfortable. You may doubt that you can charge that minimum hourly rate.
If you don’t feel comfortable charging that amount, why not? What’s holding you back? I’ve found that most handymen tend to undervalue their services and leave a lot of money on the table. Sometimes, that’s because of fear, and sometimes it’s caused by other pricing mistakes I discuss in this article.
Eventually, you will have to pick a number. Here is some more info to help you do that confidently.
What is the average hourly rate for a handyman?
Hourly rates for handymen range from $40 to $140, with most handymen falling in the $60-$85 per hour range (Source: Thumbtack, Home Advisor, Fixr, Angi).
According to Thumbtack, the national average for a handyman is $60-$75 per hour, with a low end of $40 per hour and a high end of $139 per hour.
However, Angi says the average handyman’s hourly rate for their platform is $90.
Home Advisor (another huge platform for pros) says the average cost to hire a handyperson is $390 per project. If you were to hire a handyman on Home Advisor, you could expect to pay between $60 and $125 per hour.
Even between the platforms, you will see a significant difference in rates.
Why do handyman rates vary so drastically?
There are obvious factors to consider, such as location, the types of services provided, skill level, and how established a handyman is. For example, a new handyman who mainly provides painting services to a small town in Oklahoma will usually charge less than an established pro who offers plumbing and electrical repairs in San Francisco.
But other, less commonly known factors greatly impact handyman rates. Examples include business acumen, confidence level, or even where and how a handyman advertises.
For example, handymen who advertise on Fixr charge anywhere from $50 to $100 per hour, with most charging $65 per hour, while those advertising on Angi have rates between $60 and $125 per hour, with an average of $90 per hour.
Another factor to consider is how busy a handyman is. A handyman who has his advertising dialed in and offers great service can easily demand double the average rate and stay busy. Home repair skills are important, but business skills get you paid.
How to boost your income and generate a six-figure income
I didn’t know much about pricing when I started my business, and I charged just $25 per hour (a huge mistake). After a couple of years and thousands in lost profits, I eventually got to the point where I made close to $100 per hour on average while providing essentially the same services.
Many will assume I did this by improving my handyman skills or working more, but most of my gains were made by learning business skills like sales and marketing.
Here are a few key business skills that can boost your income as a pro:
- Learn how to talk money with customers (how you present your prices matters)
- Learn strategies for scheduling jobs more efficiently (so there is less downtime and admin work and more billable hours)
- Learn ways to package your services to add more value to customers (allowing you to charge more for your time)
By learning these skills and strategies, you can often double or triple your profits without working more hours or hiring employees.
That may seem like a big claim, but I’ve seen it happen dozens of times with my students, and it’s how I average well over $100 per hour while performing basic repairs.
If you are serious about starting a handyman business and want to learn these skills and strategies, I recommend investing in my handyman pricing course – $100K Handyman Pricing. It will give you the strategies and the confidence you need to make more money with less effort, all while keeping your customers happy and coming back for more.
Conclusion
Setting your handyman hourly rate can be challenging since there are no “rules” regarding how much you should charge.
However, by understanding your business expenses, calculating your minimum hourly rate, and then comparing that with industry averages, you gain just a bit of confidence and a starting point.
From here, I recommend you continue to seek knowledge about pricing. There are many strategies and tactics that can boost your income as a pro, and it pays to investigate them all.
Thank you for your advise. I was looking for some guidance to set a fee for handyman services and I have an answer now. Best regards, Thomas
just wanted to say your blog has been very informative….thanks for the time and effort you put into it…
You have to love the $10 an hour guys. I can’t tell you how much time I have had spent explaining to customers that these people are working under the table because there is no way they are paying for insurance, taxes , business expenses and eating for $10 an hour.
You MUST convey to the customer that you are licensed and insured and that you have to charge enough to stay in business to honor the warranty that comes with your work and that to do this, you have to charge X number of dollars.
Good point Wade. It’s unfortunate that most customers don’t understand what it costs for quality work.
Has anyone ever done business with a customer who is also handy themselves? That is a freakin’ nightmare. Naturally, they don’t value your skills as much as say an insurance agent or a dentist. And don’t get me started on rental owners LOL
Yep, some customers are just flat our terrible to work for. What they don’t realize is that it only makes my service more expensive to them 🙂
When the owner wants you to do it his own way, like do not use primer or only put party no gasket.
Thanks for your post. I am a do-it all-er. I’ve been in construction for 40+ years. I don’t sub-contract someone that gives me a good hourly rate because I have been doing this long enough to know that there are a lot of ” Cookie Monsters” out there. In and outers. Make some money, no matter what you leave behind. I look at ever job I do as if were my own home. A home is the biggest investment most of us will ever make. You read these estimates online about average contractor cost of 27.00 per hour. What a bunch of bullshit. That ain’t no contractor. That’s a Jack-leg. Sure you can charge that if you are constantly screwing people but to do the job right it takes at least 50. You can pay a Jack-Leg 27 per hour. They will drive to the middle of town and load the truck with a bunch of illegal immigrants, point their finger a few times and be off to the next buck. That’s a 27.00 per hour planner. As far as permits. When city inspectors are held liable for their inspections, then I will be a believer. Thing is, 75% of them don’t know anything about construction. I can be held liable so why can’t they?
Big D,
Excellent commentary. Another value to a quality handyman who is ethical is that the customer can trust him with their home and contents. The biggest referral I received came from a man whom I had never met before. He handed me the keys to his house, told me the three things he needed repaired, and said, “Ted said you could be trusted”. WOW! That’s why I work by myself. That trust and confidence cannot be bought and it also gives a great sense of protection to the customer.
Totally Agree. Trust is one of the largest factors in whether or not somebody will hire you. Thanks for the insight.
COMMUNICATION, COMMUNICATION, COMMUNICATION is everything! Developing and fine tuning those skills to properly and professionally speak to clients is the number 1 hardest to achieve for most new Business owners. Being polite and personable. Being very skilled in your trade and knowing what your talking about. How you dress and overall appearance does make a huge difference. If your a professional then one should dress accordingly. THAT GOES FOR a HANDYMAN as well!!!! Don’t show up looking like a hot mess! If you get that dirty and your going to give n estimate for the first time, you want to look professional. I knw that sounds far fetched if your a carpenter or painter etc….
Just remember one very important thing, YOU ONLY GET ONCE CHANCE TO GAIN THE CONFIDENCE AND MAKE THAT FIRST IMPRESSION ONCE! Don’t blow it. ( I’ve seen this happen time and time again) Don’t be your own worst enemy right out of the gates!
On the other hand, for a rare few, they were just born personable and a gift of gab. Remember Clients want to know that you actually care about the issue their having. DONT forget that! Believe me that is important!
Not everyone likes talking on the phone and many don’t speak with confidence. Then again try not to be that OVERCONFIDENT know it all..
Practice your speaking skills with a family member’s or friend! For the most part, your client doesn’t know you from Adam, so that phone conversation is WITHOUT DOUBT going to leave an impression. Make it a good one! Let your client speak, even if they talk your ear off. That’s one of those “compensations” that will make you stand out from the rest. In todays state of technology, you should have the client if possible send you pictures of what they are looking to fix, install or get rid of! PICTURES SPEAK A THOUSAD WORDS! Not to mention this saves you the handyman a lot of h in the hardship in the long run. ( COMMUNICATION!!)
Your client may not be able to articulate what they are wanting done SO BY ALL MEANS LET THEM TALK. ( BUT HAAVE THM SEND PIC’S!)
YOU NEED TO BE VERY SPECIFIC WITH YOUR QUESTIONS TO THE CLIENT!
As stated by this main blogger, Building Trust, open lines of communication, reliability, and good ethical work habits is essential..
This is what we all strive for. That’s what makes us successful!! who doesn’t want that?
Ethic’s, trustworthiness, Accountability, communication! Your on your way to success :O)
Might I add that networking with reliable other professionals is a huge plus! Don’t ever think they are stealing your business from you. Know body can do it all and every client will appreciate your honesty if what they need isn’t your thing and your able to refer them to someone who can help them…
Don’t under estimate the power of networking within the Handyman industry in your area.
This is a great Blog page. hope you keep this going..
Kim.
Interpersonal communication skills advisor
Great topic, Big D. You’re learning 🙂 I say that because I, too, am learning, and have only recently came to the realization of the cost of running a BUSINESS!
The prevailing thought on total number of billable hours (due to the paper work, etc. that you alluded to in your post) seems to be 1000/yr. I suppose this may be trade specific, but in mine, it is 1K/year.
Also, have you considered a Profit Margin along with your Overhead?
Some suggest that you begin with what you would like to earn a year, and go from there with expenses, payroll burden (if any – and this goes beyond the amt. a business pays its employees: workman’s comp., etc.), along with those you wrote about.
Well, I can get long winded easily, but very good post, and thanks for sharing.
Hello Big D,
I thank you for sharing your very valueable information. It has really helped me in adjusting my business plan. This has also been my biggest struggle is what to charge per hour and also how long does it take to do each task. I am trying to take as good notes as possible so when I do a similiar job I am more realistic in time to do and of course price. I love reading your blog.
Thanks Lee! glad I could help!
Hey Big D, can you simplify the calculation above for the #5 tip. Some of use did not do algebra. lol.
Cal,
Sorry, I can’t simplify the equation. But, if you copy and past the equation into a google search and just change the numbers to your own, Google will do the math for you!
The equation is as follows
Use PEMDAS
So start with ( ) 1-.3
Then multiply that by H
Then divide that answer by L
Then divide the other side B divide by H
Then add the 2 numbers together
Hey D ,as a new handyman buisness owner ,I have a soft spot for senior citzens they get a discount plus ,I still lower my rates to help them out even more.Some senior members seem to want to take advantage of my services. Think its time to stop giving double discounts to those that can afford it. Have a great day .
Rob I want to work for your business how do I get in touch
I hear ya on the discount thing, I’ve learned everyone’s got a “ story” At the end of the day I have to lookout for #1 while still being competitive. I carry no tissues on my work truck
Great info,
I will charge 42.50 per hour but believe the first hour should be higher to cover travel and tool setup etc. You can spend lots of time setting up your
Tools and drop sheets etc to protect the customers property
Thanks
Rob
I normally charge my customers $50 per hr
With a 2hr min charge where I am there two hrs or not and 50 per hr there after plus whatever the cost of material maybe and if I need to run out for the materials there is a 20 dollar pick up fee. Seems to be working fine for me so far
@alex That’s great you found what works for you. I know a service here town that does quick service for Realtors, IE, putting in smoker det, water heater strips, pressure washing, small paint jobs easy stuff and they charge $199 for the first 3 hours then it’s if I recall about $70 an hour after that.
My biggest issue it takes me an hour at least to organize all my tools, packing my clavicle and making sure I didn’t leave something out. Checklists help but not always the same per job. Then I got travel time.
I think I will try your model unless it’s far away then I might do a min charge of $179 for the first 3 hours whether it takes me that or less time then $50/hour thereafter.
I liked the comment about charging for material pickup. I worked a lot for a particular landlord and he questioned me about my charges saying I wasn’t there the whole time and should only charge for the time I was there. I told him that I’d like to hire him because I wouldn’t have to pay him while he goes and gets my materials. That changed his tune real fast.
Skilled handyman work is a profession. The expenses run well beyond taxes and the obvious costs. We run a residential handyman service and bill on short calls a minimum of $90 per hour. One way to get a feel for what a billing schedule should be is to bill no lower than what a big box like a local Lowe’s or Home Depot charges for similar work. Charge less and you’ll become another fly by night,short lived enterprise.
Customer sanctification is essential.
1. Be firm on your price,no negotiating.
2. Work within your limits.
3. 24/7 emergency calls are a must.
4. On jobs that are beyond your ability be ready to still help the customer and hook them up with a reliable outfit that specializes in that particular work. Follow up by calling the person within a week to make sure the other outfit did satisfactory work. You will have a customer for life.
5. There is no such thing as a 40 hour work week when your self employed,get over it or go work for someone else.
6. Never engage in price negotiation nor try to explain to the customer why the cost is what it is. Hold firm.
7. Investment in parts is essential along with tools,that cost will be surprisingly high.
8. Present a detailed billing to the customer. Parts and labor cost should be itemized.
9. Be professional in every word and action.
Repeat and new word of mouth customers will be your bread and butter. These are the customers you want,they are more interested in a quality job and not bottom basement shoppers.
The list could go on but unless your making a living with the ability to save for retirement your going to go out of business.. Price like a professional because the only handyman services that thrive are professionals,not day laborers.
Thanks for the insight George! Always appreciate others perspectives. Why do you feel 24/7 emergency calls are a must?
Had a handy man do some simple work. Trim under stair lip, four short pieces of quarter round and rehang a kitchen cabinet door with new hinges. Brought a friend that he was teaching the whole time he was working. Charged me for 3.4 hours of work. What would a job like this usually run for time?
2 hours..”
probably $80.00 dlls per/hour
As a professional contractor, yes I do handy man work and the way I price it is
Regular charge $ 100.00 per hr for handy man work
Will the customer be looking at what I do? Then it is $ 150.00 per hr
Will the customer be asking question as why and how I do things, when I am working? then it goes to $ 200.00 per hr
No flat rate, sorry
Recap, I like your site, thanks for the good info and fantastic comments
Best to all handy man
Silvio
Ha! Love it. Thanks for sharing.
Silvio’s pricing is hilarious. Nothing worse than somebody standing over ya questioning your every move. And Dan, I really appreciate your blog. You have really helped answer a lot of questions I had and made me feel more confident about the choices, pricing, and business model that I have to decided to work with. I have worked for property owners in the rental business for years as an extremely hard working but extremely underpaid hourly employee and I am currently in the process of transitioning into owning and operating my own handyman business. You have literally answered every question I had and helped me make every decision I was struggling with. Tomorrow I have a final meeting with a large company that is buying up every property in the area that I live in and I already know that I got the account and at a rate that my work is worth for a change. Thanks for all your insight brother. Much appreciated. -Adam
I charge by the hour too, but I’m looking into advertising a few specific services at a flat rate.
I would never hire you. You clearly like to rip people off!
Susan, you are exactly who we don’t want to work for. Let us do our job and you’ll get a fair price. Nag and question every move we make and that makes our job harder and as such, makes the price go up. Consider it an Annoyance Tax. Let us do what we do and we’ll do it well and get out of your hair. If you want cheap, find a Craigslist Contractor and then call a real contractor when you get screwed.
LOL. Only started the handyman company a few months ago, but I used to have a roofing company and I always ended up in the high-end neighborhoods where I would charge WAY more than I would in my own neighborhood. It wasn’t because they were rich and HAD more money, but because I knew a lot of them were kind of a pain in the ass. If it were my house, I wouldn’t be holding a barbeque in my yard while my roof was being done, but they expected to be able to, so I’ve got to pay more guys for setting up and breaking down to accommodate that.
We call it the “PITA CHARGE”. The charge for being a Pain In The As*. And we really do charge it…however, its disguised as simply not receiving the “preferred customer discount”. Gotta love customers that stand over you for a couple hours & feel that in that time they learned enough to do it themselves. Last line who did that thought he could cut floating LVP flooring better & get it closer to trim molding. He forced the plank in, cracked it, & buckled half the floor I had already laid. Then wanted me to fix it. Nope. Told him he thought he could do it, he can finish it.
this website is very helpful im starting my own handy man service i dont like the 24 hour service but im willing to be at there service 10-12 hours a day but what if they dont like my price of $45 a hour and i really need the work to make money to support my house hold but i do excellent work i evan work on plantation home also i charge a lil more for them right at least $100 a hour? so how do i not lose my job to the next guy over priceing? someone please let me know
Cody,
No matter how much you charge there will always be somebody who is cheaper. Knowing this, the key to still landing jobs is to (1) have a good system of marketing to bring in more leads (2) position yourself as a professional/expert to differentiate yourself from the cheap labor and (3), provide a higher level of service than the cheap labor. Not everyone is your customer and some will turn you down for your price. In fact, if nobody is turning you down for your price, you should consider raising it. But again, you need a good enough marketing system in place to generate enough leads to where you can afford to lose some customers. This is all explained in detail in The $100K Handyman.
also is chargeing by the job screwing my self if there small?
So I live in California and the law says that I can’t charge more than 500$ parts and labor even as a licensed handyman. Just got my license and was curious if charging by the hour bypasses rules like this?
I’m unsure about that, Andrew. You should talk to an investigator in California who deals with contracting violations.
I am also in California and I was wondering what handyman license did you get in California? Is it just a business lic? I have tried to look for something like that but have not been successful.
Thanks
Kest
I have looked as deeply into this as I can without hiring a lawyer (leaving aside for now the question of whether any two lawyers would even agree on this or any issue). The short answer is that there is no such thing as a “handyman license” in California. Either you obtain a contractor’s license (subject to the same training, experience, and costs/fees as all other contractors licenses) or you don’t. If you don’t, you are limited in what you can charge. Unfortunately, the limits are not clearly laid out. In fact, the language on the State of California Contractor’s License Board web pages, and their official (1106-page) California Contractors License Law & Reference Book, are very vague, if not contradictory. And this is where I must wind down my answer because I could, literally, go on for pages. So to quote what I believe is the most relevant section from those State of California pages regarding whether a license is necessary for handymen:
“3. Is anyone exempt from the requirement to be licensed?
Yes. Here are some of the exemptions:
1) Work on a project for which the combined value of labor,
materials, and all other costs on one or more contracts is less
than $500 falls within the minor work exemption. Work that is
part of a larger or major project, whether undertaken by the
same or different contractors, may not be divided into amounts
less than $500 in an attempt to meet the $500 exemption.”
Yes, that leaves a whole lot of unanswered questions for which you have to provide your own logical answers (because you won’t get them from the State of California). But that can be my long-winded analysis for another time.
Hello Mr. Perry
I have been in the maintenance world for some 30+ yrs. but have always worked for a large company or small Buisness contractor. After getting laid off of my professional job I have decided to start my own handyman Buisness and I thank you for this we sight. I have been in Buisness for about 3 weeks and all my jobs have turned out really well for the customer. I first started out with a flat rate of 30$ an hour but as word of mouth and my reputation is the only marketing that I currently can afford is doing fairly well. I have managed to stay busy and at the same time most of my customers are of the older and retired people. I pride myself in helping others. You see my wife came up with the idea of being a handyman because of all the experience I have gain throughout my working career. But, I have made a few mistakes along the way on pricing and it has really cost me at times. I now charge a flat rate of 42.00 an hour but where I get hung is in spending the time to go to evaluate a job and if I over estimate the job in hours it usually works out ok. It is the jobs that I underestimate that gives my service away at a lower than I can afford. It isn’t that I don’t know how long it takes to do a job so much as it is the problems that creep up and cause more time and money to the customer. For example, recently I had a job to install 5 canister lights in a living area and also change out 46 recepticals and both separate jobs in the same house I ran into unforeseen problems that happen while replacing things that added more time and money for materials.My question is it fair to say that as a customer they should incure the extra cost or is it me the handyman that should absorb the extra cost for underestimating the
jobs? Which is fair to both me and the customer?
Dan,
That’s depends on what was communicated to them before you started the job. As long as you say “Here’s the price for what X, Y, and Z. If there is anything outside of X, Y, and Z, that I need to do in order to finish the job, it could be extra.”
Short answer is the customer should pay for any and all work and materials done (outside of mistakes made by you). But, it’s your responsibility to communicate very clearly that extra work is a possibility. Or, quote high enough to compensate for that.
Dan
Okay, I’m just starting up. I don’t know how to go about buying materials. Do I tell them up front to buy them or give me the money or what exactly??? PLEASE HELP
Jacob,
If you are quoting the job, you need to include the materials plus markup in your quote. If you are charging hourly you will simply bill them for the materials once the job is completed.
Dan
I was wondering if anybody here charges a higher hourly rate for commercial work. I’m mostly working in residential now, but I’m thinking about trying to do more work for local businesses. Any advice?
I do charge more for commercial building work. About 30% more because I was a commercial building engineer for many years prior to starting my handyman service and I charge my hourly rate at 30% less than the average plumber, electrician etc does. And I don’t feel a bit bad for charging the commercial businesses the premium rate. They charge the premium sq ft rate to their tenants no matter how crappy their building is and commercial customers require a lot more insurance, there’s usually parking issues to contend with, entry access, security guards to deal with, waiting for the elevator, waiting for the engineer to escort us and then for him/her to come back and check our work. There’s a lot of extra headache in dealing with commercial properties so make it worth your while.
Dan, I love your website and discussion forum! Thank you so much. If I may, in answer to Jacob’s question, I’d like to add that it all depends on what “materials” means to the customer. If a customer hires you to do a bunch of miscellaneous things in the home she just moved into (I’m in the middle of one of those jobs right now, probably 30 hours of total work) you’re going to have a range of “materials”, from the ones that the customer is clearly going to provide herself, such as towel racks and toilet paper holders, all the way down to the things the handyman will almost certainly provide, such as the drywall and plaster necessary to fix that big hole in the wall under the sink. The gray area is all the things in the middle. So when I’m asked on the phone whether I can install a t.v. wall mount, or a shelf in the garage, or a new deadbolt or a new door, I make sure to get it clear on the phone which of us (handyman or customer) is responsible for providing what. Good communication is the key. Even with jobs such as drywall patching, I’ll usually tell the customer that I’ll be providing the supplies and will charge him for them. That gives him a chance to say, “Oh, I have several sheets of drywall right here” — which is fine with me!
Is there room for this in the market?
I can hang pictures, sturdy mounts, make sure everything is sunk into a stud. I can shim anything on feet, patch walls, build shelving units.
I think I am a real handy man. Most of you are general contractors. Handyman can fix a squeaky door or make it flush again, but you need a real GC to put a door in properly.
On some projects, I am basically good enough to tell you to hire a real plumber, electrician, or carpenter. I am way better than the average hobbyist but I am not a professional at any of the elements of construction, maintenance, or whatever.
I also fix computers or declare them dead. I charge 20 bucks for a consultation and the first hour, 30 after that. It is a part time thing that also exists so people quit asking me to do these same things for free. It is one thing for family and close friends, but then everyone wants the same hung curtains, flush shelves, at the same price of nothing.. psh.
Any advice on how to advertise my part-time services at this rate?
I have been bouncing from one dead end job to another mostly in the warehouse industry. One of my family members recently approached me about doing some work for her around her house. She says that if I do a good job that she will recommend me to her friends. The first job is to extend a 20×20 deck over to the walkway running behind it. Then she wants me to build a gate about 6 feet across under the deck to where the ac units for the house are. After the wood work is complete she wants me to pressure wash and paint the whole thing. There are also a couple of staircases attached. I was planning on this taking two days. One day to do the wood work and pressure wash, let it dry over night and then paint it the next day. I wash thinking of charging $15-$20 dollars an hr. She will supply all materials. Any questions? Comments?
William,
If you’re only purpose is to get some work under your belt, $15-$20 is ok. However, it’s much much too low if you are trying to make a profit. If you really want the job, I would tell the customer that you’re rate will usually be at least $50/hr, but since you are just getting started out you are willing to do it for less.
Honestly, you aren’t in a great position with this and I personally don’t believe this is a good way to start your business. Whenever you are relying on somebody else to market your business for you they basically have you by the balls.
If you’re serious about starting a business, do it the right way, or else you’ll wind up being cheap labor. Also, that job will probably take you twice as long as you expect.
I know this is hard to hear, but I’m being direct because I care about your success. I hope it helps.
Hi Dan,
If we quote a project that we provide all the materials, what is the typical markup?
It varies depending on where you source the materials, whether or not you get a special price, and many other things.
But, if you’re talking about just buying things from Home Depot, 25% is a common markup.
To the guy talking about extending a deck and building a gate. Be careful offering services on things you think you can do, but aren’t sure. It takes knowledge usually attained by building decks, to alter one and extend it out. It also takes knowledge and experience to build a gate that functions correctly and is built to last. These are things that need to be done right, or they won’t work, plain and simply. Also, unless it’s hot and dry, it will probably take more than one night to dry a deck after covering it in water. Also, are you going to prime it before you paint? Are you using the right paint for decks? These are very important questions. This is why people hire professional contractors, or handymen, to do this kind of work, and why it costs upwards of $50/hr. If it’s done wrong the first time, it will still cost the normal rate the second time to fix it. Good luck.
Chuck
Hi , I have been working on houses since 1986. The crash pushed me out on my own in 2010. Over this time i have come to charge $75.00 per hour. I have had customers balk at this. I explain the reason i find this reasonable is, I am a professional in my field, I bring my experience and tools,materials to the job. If you take your car to the shop, you most likely will not personally meet ther person doing the work on your vehicle. they charge around$85.00 an hour here in Northern Illinois. Most people will not see their work. A Handyman/womens work is on display, and in most cases pointed out to friends of the client. Wether I do a good job or bad job, they WILL tell their friends. After thirty years of working on houses, I am finally making proper money. Customers who do not like my price are more than welcome to hire someone else. Trust is Number 1 for my clients. Some are snowbirds and want the work done while they are in warmer climates. ” That Gold watch was only touched to clean up my mess.” Rate you charge should be fair to both parties.
Thanks for sharing this. Always good to hear when somebody else has validated this same strategy in another part of the country.
I am a GC in California with 30yrs in the business. Started as a handyman grew into a GC Builder, Remodeling, Handyman Company. My rates have always exceed everyone by far. Started at $25 over 30 yrs ago. At retirement 10yrs ago I was at $125. My number one rule ” Do not waste time on those who can not afford you “. I was borderline arrogant. I choose my customers and people respected that I was EXCELLENT at my profession. Second rule was “If you don’t like my work, you don’t have to pay me, just pay for materials and expense”. Never had a problem getting paid. Finally, my last rule was “Know your customer ” I made it my business to call on birthdays,anniversary and always check on the kids and pets. Truth os most of my customers called me to just have me thwir to do something so they could vent. Handymen are far more than the guy who repairs things around the house. I will never forget a customer calling me when their friend was killed, also when their child had to have heart surgery. They called for prayer because they knew I love the Lord and it showed in every thing I did. God Bless those called to this wonderful profession, may the Lord bless you as he has and is doing me. I was honored to win the Entrepreneur of the Year in 2000.
Mr. B, when did you start as a handyman, did you have experience in other work like it? I am trying to start a small handyman business over the summer before I go back to school for engineering in the winter. all advice is appreciated.
hey ron i would like your help Asap with my start up rate.i cant figure it out someone please help me
Edwin,
I found this site out really helpful.
https://hometechpublishing.com/index.php/handyman-estimating-handyman-work/
Trying to make the leap my big concern is it gets cold ,very cold here in WNY I don’t know how much work will be there when the snow flies . I do most all ,I’ve been doing this for over thirty years , company I worked for folded . The owner took the money and shut down , so I’m really thinking of all possibilities in going on my own . I guess what to do durning lean months , or worrying about the wrong things.
Hey Thomas can you give me some advice on how to go about getting started at getting my own business going?
Hey Thomas,
I’ve put together a startup guide to help you through the process of starting your business step-by-step. Here’s the link to where you can find it: https://www.handymanstartup.com/landing/start-handyman-business-course/
Best,
Dan
I have calculated what my handyman rate should be and as a price it’s way more than people would afford and what the handyman company I work for offers. Does that mean I should quit and try to make it on my own with handyman services?
If you can justify charging more by offering a higher quality of service or specializing in a more profitable service, then starting your own business is a good option.
But, if you aren’t going to be able to generate enough income to generate the income you need, I would consider other options.
Dan,
I have been in business for a few years now. I have acquired a decent size customer base. I have many out of town customers with vacation homes here locally as well as property management companies I do work for. I find that I set my bar too low in setting an hourly rate initially and would like to introduce a new pricing schedule to my current customers prior to it taking effect at the beginning of next year. Would you have any advice on how much of a price increase is acceptable, percentage wise, at any one time and what is a good gauge for setting new rate increases in reference to time frame in the future? Also I have been searching for a way to stand out in my community by offering a unique service such as package deals, creative billing strategies that bring in monthly revenue and offer through the year ongoing maintenance and upkeep or offer some type of cutting edge product or service that is not currently available in my area. Would you have any good reference links for brainstorming such ideas. -Thanks
Hey Derrick,
I wouldn’t worry about percentages when raising your rates. It’s just as hard to raise your rates by $5 as it is to raise them by $20. I would jump to wherever you plan to stay long term. You don’t want to be constantly raising your rates.
Will you lose customers? Yes, you will. But that’s kindof the idea. When you raise your rates, you are also defining your customers more specifically so naturally some people will drop off.
If haven’t already, I would recommend checking out my pricing guide “The $100K Handyman” to set your future rates.
Dan
I have worked in facility maintenance for a couple years now. Its a common occurence that someone asks me if I do any side work. I normally reply with “No, because I do not know how to charge for my work”. Being a maintenance technician in a skilled nursing facility I am paid an hourly rate of $14/hour , so that is all I know. Recently, a lady asked me to come paint three rooms of her house but I turned her down simply because I do not know what to charge other than my normal hourly rate. Any suggestions?
All good questions and answers, but when it comes down to it get the client to sign
a contract, including materials and labour then you dont have to put up with annoying people holding you back. If its a bigger contract than you thought then workout a
payment plan to be payed as the job proceeds.
Robbie
I did independent tree work in Houston. I would go on to a block and prune a tree for nearly nothing. The neighbors would see the job I did and want me to do theirs. This system actually worked great. One guy hired me and decided he would take the day off work to make sure I did it right, 18 years of experience by the way. I told him you took the day off for nothing, call another tree service and left. I would tell people that it is $45. for me to climb to the top of a pine tree. Cutting and hauling debris was free. My reason for that is that I would get done back on the ground and they would point up to some twig that I missed and want me to go back up the tree.
How many miles you guys traveling in a month
I’ve been a contractor in my area for 20 years, and have had to scale way back, to becoming a handyman. I don’t regret it at all, except for the fact that I often find myself taking on jobs that are too big for me to complete myself, but somehow I manage. What I recommend, is don’t do that. If your going to be a handy man, don’t take on anything you can’t complete by yourself in a day. This way you can concentrate on small projects that keep you moving to the next customer at a reasonable rate of wait time. When people need a handyman, they need you sooner rather than latter. And if you can’t get to them in a reasonable amount of time, the will move onto your competition, or forget about you altogether.
Not to mention that your only making it harder for yourself by getting into a project bigger than you intended, as they always seem to become before your actually done with it.
The reason why doesn’t really address the root issue, though, which is how you value your time. If you are able to hire out your work at less than the hourly rate of which your time is worth, then you hire it out.
How do you go about deciding on what how long of a warranty to offer for your work?
Hi dear,
thank you for sharing your very valuable information. It has really helped me in adjusting my business plan. This has also been my biggest struggle is what to charge per hour and also how long does it take to do each task. I am trying to take as good notes as possible so when I do a similar job I am more realistic in time to do and of coursHonestly, you aren’t in a great position with this and I personally don’t believe this is a good way to start your business. Whenever you are relying on somebody else to market your business for you they basically have you by the balls. thanks again for your article
If you’re serious about starting a business, do it the right way, or else you’ll wind up being cheap labor. Also, that job will probably take you twice as long as you expect.
I know this is hard to hear, but I’m being direct because I care about your success. I hope it helps price.
Hi, A great blog you got here. What if only Intrested in working 3days aweek for a total of about 12 hours or so a week. due to the fact I have another steady form of income how would I use your equation. living expenses etc…
@Dan Thanks for the article! You are so right. If we are not charging according to your formula we will go out of business or into debt to stay a float and then eventually sink.
I believe doing jobs we are fast and efficient at instead of trying to be a jack of all trades is one of the keys. I loss count of the jobs where I totally underestimated the number of work hours, not to mention travel time and setup and store runs and reducing the hourly rate in half or near to it. That sucks!
Mr. Perry my husband has been in the construction industry for 35 years and he is very respectful, very knowledgeable on every trade, can and has done every trade except HVAC, trustworthy, takes pride in his work, I mean he still surprises the hell out of me with the knowledge and skills he has. I just started helping him a year ago. I do everything except the actual labor. However, his timing is just off and I’ve tried everything to get it on track. Nothing is working. He’s going to be late to his own funeral. Do you have any advice for us? Thank you!
It’s hard to make people care. I would say your best bet is to just communicate with customers when you will be late, and let them know in advance that you often are late. That way at least they know what to expect. Not ideal, but better than just leaving them in the dark and being late anyway.
Brandy from March 22, 2019 does he use Breezeworks Scheduling and invoicing? That makes it easy for me!!!
Hi Dan,
I am desperate in need for a new website that will generate the right leads. I have been in business for 30 years. Was in Illinois but moved to Las Vegas to take ccx are of my mom. My beloved father recently passed away and so I decided to move with my family to be closer to take care of her and I am in a desperate need to promote my handyman business and become successful like you. Will you be able to guide me in the right direction? I already registered my business in the state if Nevada.
Sincerely, David Rodriguez, DHR, INC.
Sincerely
Sin
Hey Dan…love your site. I have been informally doing handyman work since the early 70’s mostly friends and family free of charge. I retired from one profession two years ago and have recently started focusing on professional handyman services full time as my next career. I live in Colorado and focus mostly in the north end of the state. I charge $65/hr for labor plus material. As I have read your blog and I see pricing all over the place. With the Colorado housing market as hot as it is I feel justified at my current rate. My question is, do you have any experience with how other Colorado Handymen/women are charging in the state.
Dan
SkyBird Construction
I have been trying to figure out how trades determine their outrageous hourly rate. First let me state I am a REGISTERED NURSE – with a license in a job where I save peoples lives and help them to heal. My hourly rate is $50/hour. So how someone without an advanced education, student loans and requirement for constant recertifications feel it is reasonable to charge $90/hour because of wanting to maintain their lifestyle is ridiculous! This is why so many people are now becoming talented DIYers
Are you in business for yourself or are you an employee? If you are in business for yourself then you should strongly consider charging more. If you are an employee then you must realize your employer has to charge much more than $50 per hour for you time to pay you that rate.
For Dana the Nurse –
Please don’t assume that because I own my own company that I am uneducated. Please understand that I have over two decades of maintenance experience. The consumer’s options are simple – hire or DIY. How many dishwashers, garbage disposals, or OTR Microwaves have you installed? If you can DIY it, great! If you are afraid of the potential damage you might cause, hire someone. I don’t charge $250 to install a dishwasher because it costs me that much; you are paying for the thousands of hours of experience I have and the guarantee that when I leave, you will have a beautiful working appliance.
Thank you,
Mark
Ive been asked by a property management company to be on call for them. They give me probably 70 percent of my work and they keep me busy so though i don’t really want to be on call for them and answer their emergency phone im willing but beyond charging essentially double for showing up after hours or on the weekends for them does anyone have any suggestions for how much i should charge if anything for this service. Its really more of a pain due to having 2 phones lol. Thanks
How much money an hour should a handyman helper make?
That depends on their level of experience, what you’ll have them do, your area, and the quality of talent you want to attract.
I’m just starting to get my Handyman business set-up and have calculated my hourly rate. I also live in a very rural area and am going to charge an hour minimum for the first hour. My question is how do I communicate that information to the customer? Do you put it on your business card, do I tell them on the phone when they call about a job? I know if it’s a larger job, I would put it in the quote, but smaller jobs I don’t know they proper way to communicate that.
Hi,
I just recently started a Handyman business. I’ve figured out my hourly rate, and since I live in a very rural area, I am going to charge an hour minimum for the first hour with subsequent time in half hour increments. I need your advice on how, and when, to communicate that to customers. I know for larger jobs, I can put that info in to a quote, but what about quick small jobs? I don’t have a website – yet. Do you put your rate on your business card? …or mention it on the phone when making the appointment? My problem with verbal communication has already created an issue for me; I did my first job last week replacing a dryer vent for a customer. I was there 30 min, charged the customer for an hour, but she then proceeded to ask “Why are you charging me for an hour when you were here for only 30 min”. I know I told the customer my min. charge, but she said “she did not know”. Since I am just starting I figured the right thing to do was admit fault, and only charge her for the 30 min. even though it took me 35 one way to get to her house, which she knew. Please let me know your thoughts as I am in need of some advice as to how to proceed, and not keep loosing money.
Hi Dan,
Just curious as to why you haven’t commented on my question from way back in October…. could really use your advice.
Thanks
Hi Dave,
Honestly, certain questions I don’t respond to because in order for me to answer it completely the response would be very long. However, I do address all of these issues in my course on pricing called $100K Handyman Pricing. You can find it in the products tab. I know you probably don’t like the answer of “buy my course,” but I’ve answered all of this in depth and there is a 30 day guarantee on it so if you don’t think it was worth it you can get a refund. But I doubt that because most of the feedback I get is very positive.
-Dan
Lot’s of good answers here and I feel I need to input my own explanation to the Self Employed Payroll.
I have had to raise my prices twice in my business. When I first started out I was doing work for a rental management company. That took a year to see that I was in the negative in profit when I did my taxes. They wanted me to do everything on the cheap even my labor. I raised my price per hour and lost them but started doing commercial work and residential after I ranked my website. I was getting 10 calls a day and that turned into half confirmed projects. Which was good for a handyman just starting out. I broke even the next year with this and then the following years I kept increasing in profit with doing more projects. Then I bought a new truck with a utility bed and had to increase my bottom line again to $125 the first hour for everyone then drops to $50 per hour for residential or $60 per hour for commercial.
Well its time for another bump because I have to rent my time and money out for 30 to 45 days with commercial and lately they have been pushier than residential customers. So I’m thinking of keeping the residential at the same rate because its a good rate for them. But commercial is abusing my generosity and I’m tired of it.
So I’m thinking that the $125 for the first hour will stand then $100 per hour after.
I warrant everything I do for 1 year and I have never had to cash in on it. I’m thorough in what I do so that I don ‘t have to cash in on the warranty. I’m a perfectionist when it comes to my work and I work slower than most so nothing is missed cause if there is one thing I hate, that is to get called back out on a job to fix something. My customers are happy with my end results and don’t have anyone complaining about my work or my prices and I think I’m too cheap.
This is such a fantastic resource. So glad I found this just as I’m planning my own start in the handyman world. I love all the comments, perspectives, suggestions. Great to read that I’m not the only one who’s struggled with pricing in business. It really seems to be a thing. Thanks for this, Dan. (And I am seriously thinking about signing up for one of your paid courses..)
You’re welcome Georg!
I cannot seem to get the wage calculator, is just seems to hang when entering details ?
You have to download it first. You probably just opened it in your browser.
-Dan
Hi Dan,
Thank you so much for giving me the information to build my handyperson business with confidence. A question: I recently completed paid work for a relative whose cottage is on an island two hours and a boat ride from my home. It was work I feel proud of, she paid me and went on to enthusiastically promote the job I did on her social media. So now her friend (also on an island, also two hours from home) wants to hire me for a job that will likely take 5-6 days to complete. She has offered to put me up in her guest cottage during the job. I’d like to drive up to see the site and make a project plan. Do I charge her my day rate for this, just eat the time or bill for the actual hours but discount them from the final project if she goes ahead. She could easily hire someone from her area but loved the work I did for my sister and wants to have something similar. Help, please!
Vicki, Odd Job Designs
Just charge whatever amount will make you excited to get the job, and not dread the inconvenience. Unless you really need the business, put the tough decision on the customer.
Cheap labor isn’t skilled ,Skilled labor isn’t cheap.👍 Carpenters
I have been in construction management for 10 years, then started my own construction company last year. Did about $125k worth of residential remodeling work my first year, then covid dried up all my jobs. Over the last 10 years, and especially this past year I picked up some practical handyman skills. I know some trim carpentry, drywall patching, painting, installing light fixtures, power washing, changing locks, fixing doors that are stuck, etc. The work I’ve done myself in the past has been complimented by clients, but I work slow, and I’m not an expert yet. My confidence in my abilities isn’t high. I sometimes feel like a fraud even though I’ve been able to do better work than some of the subs I’ve hired in the past! That said, I just started a handyman business, and have my first job. Simple drywall repair work. However I wonder how I’ll be when clients want more complicated jobs. When you guys first started out, did you have to turn down many jobs that were outside of your comfort zone? How do you balance wanting to hone your skills (and make money!), but not getting in over your head? I get sweaty palms imagining being on a job and then suddenly realizing I don’t know what to do.
Would you ever charge for travel time independently, or would you just have a different rate for jobs that involve a great deal of travel time? I am trying to get my husband to charge more when a job involves 90 minutes of driving round trip, but he is only on-site for a quick job that takes less than 30 minutes.
Yes, it’s called a trip charge – usually $40-$60, but can be longer for longer drives. It needs to make sense financially to drive somewhere, otherwise what’s the point? You’d be better staying home if you aren’t making money.
When working on job and need to run to store for material do I charge the customer for that time?
In most cases, yes. Unless it was something that you should have had on hand already, like a common screw or something that forgot to pick up that you knew you would need.
Hi Dan,
I am retired and live in California. I collect Social Security benefits now. Until I reach “full retirement age” which for me is 66yrs and 2 months (and still 11 months away), Social Security only allows me to earn about $18K a year before they start dinging my SS benefits $1. for every $2. I earn above the $18K.So I can only do handyman work part time with out being penalized by SS. From what I have read, the California Handyman laws only allow me to do projects that are $500.00 or less total for labor and materials. If my customer provides the materials, can I charge up to $500. for my labor only? Thanks for the blog, I have enjoyed reading it!
Dan C.
I believe the total amount for the projects needs to be below $500, but I’m not an attorney so I can’t say for sure. I will say that most handymen in California that I know regularly exceed the $500 limit.
Hello Dan
I live in California and I’m thinking about starting a Handyman business soon. Do you know if working on electrical, plumbing and HVAC repairs are allowed? Also, can I advertise my handyman business?
Thank you
We run our own handyman company in Concord, NC and only charge customers for materials (if they have us buy them of course), labor, and supplies necessary to get the job done. If something does fall in a grey area, we make sure to discuss with the client and explain what we need and why. When in doubt we always ere on the side of doing what’s best for the client (under promising and overdelivering). A satisfied client and job well done is the best advertising.
Hey, I’m scoping out starting my own business here in Greensboro. Is there anywhere I can find the restrictions on handyman (no electrical or plumbing, etc.). I know anything below $30k doesn’t require a license, but the electrical/plumbing is a tough thing to discover. Installing new outlets, I get being out. Replacing an outlet or fixture, feels more straightforward. Any advice?