As a handyman, how much should you be charging an hour?
There is an answer for this, and I will help you figure this price out. This is the same formula you can use as a handyman, online freelances, or another person that provides any service.
The rates for handyman vary. Some charge as much as $100 an hour because they are doing a professional job. There are others on sites such as Craigslist that are willing to work for $10 an hour.
Where do you fit in? What price should you be charging handyman customers?
You are going to find the answer to this. There is a step by step process that will help you get the price that you should charge.
You can charge by the hour, provide a quote for the job, or have a flat rate based on a standard service. You can find success in this way.
Ways to Determine Your Hourly Rate
When running a business, you are working to make a profit. You need to charge your customers enough money to make a profit and maintain your lifestyle. If you cannot do these things it does not matter how cheap the competition is, you will not be able to survive.
If you do not charge enough money, you will work long hours and have nothing to show for it. Your business will not be a success, and you will need to find another job.
You need to charge enough money to cover your monthly bills. This is known as Cost-Based Pricing and is a way to make a profit.
You need to find a minimum price to cover your life and your business expenses. You can charge more than this amount, and it is recommended.
This is only the first step.
Step 1: List Your Living Expenses
How much does it cost for you to like a comfortable life?
List all of your expenses even the ones that you may only pay once a year. Give each one of them a monthly value. Take some time to make sure everything is included and add a little extra for unexpected expenses. This will you figure out how much your normal lifestyle costs. If you are saving for retirement, including this in the list as well, including any insurances that you need to pay.
You can look at the salary from your job and see if you are making enough money to support your living expenses.
Step 2: Business Expenses
You now need to add up your business expenses. There are some things that you should be thinking about. They include:
- Cost of health insurance
- Costs of liability insurance
- Advertising expenses
- Mileage and vehicle maintenance
- Cost of a website
- Office supplies
- Phone costs
- Mailbox rentals
- Any licenses fees
To get additional details to check out part two of this article.
The Surrey Handyman
14577 105a Ave, Surrey, BC V3R 1S2