How to Price Handyman and Contractor Jobs

Basic overview of the steps i take to price simple jobs.

[jamiewatkinson]

I do $100 for the quote added in price, $900 a day labor rate, materials varies, $50 for picking up materials, $50 a day for each day for gas that I'm on job. This formula works well I'm a mason.

[tomcartwright]

Simple formula for beginners. Homeowner needs a new front door. You think an easy two hours, to remove old and install new. Double that time plus materials, plus time to get materials. An older home will always present unexpected surprises that will cost you extra time.

[ammilgarrison]

Good advice! Especially liked the idea of being very specific about what you are agreeing to do on any particular job. And I never thought of cleanup as part of the job-I certainly will for now on!

[el.handyman]

I charge by the job and I've created a template for myself similar to what you have in the vid. Basically I list the job, how long the job will take me (in minutes), and any material needed. My template includes allocation of material and a disposal fee. I leave them blank if not needed. At the end, I total my time & divide by 60 (based on my rate), then add any materials I have to purchase. I also have a minimum charge, which covers 1-hr and a trip charge. I work solo, no employees, and if I have to hire a helper... what I pay them goes on the material side of the form.

[CharlieTheCarpenter]

Very good lesson on how to bid direct labor costs. Don’t forget that cost of employment could be 100 percent more than the hourly rate a craftsman wants to pay himself an hour.
Example:
$16 employee bring home
20 per hour employee rate
35 per hour employer cost
38 for 3 per hour benefits

And we haven’t even touched company overhead and profit.

[LookinThings]

Great, Thank you for your time and effort on this, My wife of 35yrs. Is a left handed and the only thing here thats distracting is the left hand writing, makes me want to watch you do carpentry,

[aaron]

I think there’s a very wide spread in ability, capability, experience, and of course local averages. Also, supply and demand is a major factor. If your customers are telling you that you’re the only one answering your phone or calling people back, your stock is pretty high. Also, doing handyman work as an experience contractor with decades of experience and tools and equipment well into the mid 5 digit numbers is also a factor, especially compared to a handyman that does it as a side hustle or retirement gig with minimal skill and experience. The sector is diverse in that way. If you’re getting every single job you estimate, you’re too cheap. If you’re so busy that you are hesitant to schedule out any further, you’re too cheap. Your customers are paying for lots of things (or not conversely); skill, your experience, overall quality, your ability to design a functional and durable solution to the problem at hand, as well as the health of your business and longevity. It does the customer no good for you to go under in two years because you’ve priced yourself out of profit and prosperity. What weight does a warranty or standing behind your workmanship do if you’re belly up after a couple years. This is an interesting video to come across, but it’s definitely more in line with the metric a person would use in a side hustle scenario. If you’re netting that little in a day, just go work for someone else and forego the overhead, cost of doing business, and very importantly, the liability exposure. If the customer wants close to DIY pricing, they can always opt to DIY. Just some things to think about.

[timmyify]

Great video, really helps to have a framework as I go self employed for the first time

[jeffthewhiff]

I work as a professional painting contractor and this video on how to price projects was very helpful and I actually incorporate most of these things into my estimates. Based on my experience, the most difficult jobs to estimate are the ones where I haven't actually done in the past or when your customer is working with a very slim budget because almost any figure will be too much.

[thelastgriffinlord]

I needed this... I've always charged based on difficulty and I've become a pretty good carpenter so I've been underselling my skills smh... straight up Hood prices lol.

[AyeJay-fepq]

figure out your expenses per job, then double that number, thats your mininum price, go up from there, make adjustments on type of job and experience you have to charge what YOU feel your time and knowledge is worth. don't get caught up in what everyone else is charging, unless you want to be like everyone else. stand out from the rest, by being the best for YOUR clients.

[ShakespeareCafe]

Task Rabbit charges $75/hr to hang a picture. You've got to rigorously account for dump fees. Our local landfill charges $33/cu yd ave for most construction debris, NOT by the pound. and there's a minimum $33 no matter what the size so that fence post concrete just cost you $33 to get rid of plus driving.

[jonathangraham]

Very simple alternative. X your labor by 2.7% this is a great T&M quick calculation. Always mark up materials!

[katwestbrook]

Thanks for this:) I’m doing an estimate for the first time today!

[abdcontractingltd]

We hardly do sq Ft pricing on jobs now especially on renovations. Typically we try to add up what each task takes in hours, then multiply that by our contract rate and it gives us a a great start to the estimate

[ykhaleq]

We are all born left-handed but only a few of us smart enough to use it 😎

[TheCoastofMagdala]

No sorry needed! This video is perfect! 😩🔥

[duradim]

If you are making $25 an hour as an owner, you are making less than what you could make working for someone else. With that said, charge what you want to make, not what any given customer is willing to pay. You have to learn to walk away from some jobs. Getting one out of five quotes approved is very typical.

[dwj]

My minimum charge for little stuff is 125 for first hour 75 per hour per man after. Best way to sell is figure out how many hours you think itll take then multiply by 75 per man per hour. That's how I do it. Flat rate. I also have employees

[rabbycacker]

That's all well and good if you are working on week ends for cash from friends and neighbors. If you are trying to support yourself with no other means of income that is not enough allowance to cover your expenses.
Track your time spent to; inspect the job, prepare the cost out and estimate, expedite materials, mobilization (load all your stuff to go), job site prep, perform the work broken down by each separate phase for use in future estimates, jobsite clean up, demobilization (unload all your stuff), billing time and record keeping.
Don't forget to include an allowance for vehicle(s) - (purchase, fuel, maintenance, insurance), tools purchase and maintenance, accountant and book keeper fees, advertising and printing even if only cards, business licensing including bond and insurance, legal fees.
You also need to include an allowance for your shed, shop, garage etc along with your office space and whatever else I forgot.
Oh, and don't forget to include an allowance for your retirement that is protected and secure.
Check out The Handyman Business channel. I am not affiliated with him in any way but he has a good handle on what the business side is all about