Negotiating Handyman Rates...
for the Customer and the Contractor
Handyman rates affect you whether you are starting a new business, or looking for a handyman to do some work for you.
This page gives you an idea of how to set and negotiate rates in the handyman industry.
How do you set prices for handyman services?
Knowing supply and demand for various handyman services in your location is key to helping you set your own prices, and determine which services will be money makers.
Maybe you're thinking you simply have one flat hourly handyman rate for all your services?
That might be easier for you to track, but it may also remove your name off a new customer's list of potential contractors if you are much higher than competitors.
Unless you have a chance to impress a potential customer with your level of knowledge or service before you get the job - price will likely determine who gets the contract.
I'm not saying you have to always have the lowest handyman rates. You just need to think like a customer sometimes.
A quick search in your favorite search engine will pop up with a number of sites dedicated to teaching strategies on pricing methods.
Many strategies relate to goods rather than services, but it certainly doesn't hurt to take a look. Something you read may spark an idea for a decent money maker.
Generally speaking, people want to know WIIFM? (What's in it for me?).
That said, here are some quick hits when considering setting handyman rates:
- Research local supply and demand
- Is the work a pain to do or manage? Charge a higher rate.
- Is there a possibility of more work with this client? Charge a lower rate.
- Will you have employees? At least double the rate to the client that you are paying the employee, or it won't be worth your time to manage the headache.
- Buying and delivering supplies? Markup the supplies (generally 10-20%) and/or charge delivery fee.
Now, you're probably asking, "Is there an industry standard for profit margin or 'markup'?". The surprising answer can be found by reading this article about construction price and industry standard.
Always treat your customer fairly, and you'll get repeat business!
What if I'm looking for a handyman to hire?
Entering the world of family handyman contractors no doubt makes you consider the handyman rates you are about to pay.
Here are some quick points to consider when searching for a handyman:
- Research local supply and demand - get at least three quotes before pursuing a specific contractor.
- Do you have more work to do? Dangle that carrot in front of the handyman you choose - might make a difference on the rate you get for this job!
- Ask if the handyman business owner will be doing the work himself, or will an employee be doing the work. Might make a difference in the handyman rate.
- Can you or a friend/family member pickup the supplies? Could avoid markup and delivery fee (I'd caution on this one...sometimes the handyman will get a better price for supplies and pass it on to you! Do your homework...)
- Follow the handyman around while he looks at the job. Ask questions as to his approach to the job. Supplies required, how the job would be done, etc. you may be able to get all the knowledge you need and you could save a ton of money doing it yourself.
Always treat your contractor fairly, and you'll get a good product at the end!
Thanks for the info on handyman rates. Take me home.