Thank you all for watching. Here is a great book for establishing your pricing that I recommend you check out: www.amazon.com/Handyman-Pricing-Handbook-confident-pricing/dp/B096TWBF1Q/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=&sr=
The Essential Craftsman said it best. "If you aren't losing about 50% of your bids because your bids are too high, then you aren't charging enough." There is no shortage of people that will want you to work for nothing. Those kinds of 'customers' will put you out of business. Just walk away.
I only get 20-25% actually. I wouldn’t mind bumping that to 25-30% though. Past that, in my area for what I do, I believe I would just be burning money
At 63 I took early white collar corporate retirement (I was a Dir. of Human Resources) and I decided on a second life as a blue collar handyman. I'm now 72. The Handyman Life is fun and addictive. For fun, I still do small Work Orders for a Property Company and private home owners. Just last week, a client lady wanted her gas log fireplace available for her Christmas home party. I replaced a gas fireplace burner assembly and made $200. I can't... stop... handyman-ing...
That wouldn't happen to be the same gas fireplace that caused the house fire a few days ago, would it? How much is handyman insurance anyway. Seems like it would be really high due to the untrained, unskilled workforce.
How did you meet or get connected with your property management people? I just started a business and i been thinking a property manger/ investor is my most realistic option to survive as a start up business
I like that you reflected on the leadership skills AEB caring for and nurturing your team. This is critical and not opened for discussion. Your core values are also essential. Without it there is nothing. Great presentation! Semper Fi
Great topic Allen! Personally, I believe that a handyman is a contractor. The work we are hired to do by a homeowner or a property manager is contract work. I know that the work we can do differs from state to state. However, until a handyman or woman treats what they do as a business, the stigma will always be there. I work "solo" and you're absolutely correct about the day ending much later for those of us who wear multiple hats. Thanks for taking the time to share!
I've been a full time handyman for 5 years now. I'm going to give you guys some advice you might appreciate. (1) Don't ever give an estimate upfront . Write down everything, then take the information home and break it down carefully. This is important for one reason. If you rush or get pressured by the client you will probably charge too little. Take your time and you are very unlikely to undercut yourself. (2) Do not put the cost of material in your estimate. It's too much work to determine exact cost, and if you end up paying more than you estimated you're either going to eat the cost or have a upset client. (3) Either text or e-mail your client the estimate and be specific about the work so there is no confusion. For example: "paint only bathroom walls in hall bathroom. Material is not included in this estimate.." This means I'm only painting the wall. Not the ceiling, not the trim, not the doors. I have had clients try to tell me I was supposed to do something but I went back to my estimate and was able to point out that it's not there in the estimate. (4) do not ever work for hourly pay. You will be taken advantage of and you will lose money this way. For example, if say I was charging $50 an hour and I'm installing a dishwasher. I can install one in less than a hour. However, I typically charge around $125 to install one. So you see, I'm losing money. Furthermore, telling a client I want $50 an houris likely to scare them off because they don't understand. (5) Don't budge on your estimate. The reason you want to do your estimate over text or email is to avoid any kind of confrontation if they think the price is too high. In any case, you'll have time to think before responding. Don't worry too much about if you get the job or not. Know your worth. If it's too high for them, go to the next job. When I first started I used to try very hard to get every job. Now I give my estimate and if they don't like it, I'm off to the next job. I do not have time to be wasting my time. You have to understand that some people are simply difficult and will not be satisfied until you undercut yourself.
I charge $100 an hour here in the Bay area, and I haven't had one customer ask "why so much"? $50 an hour as a handyman is horrible, straight out of business. Bid the job on skill it will take, time it will take, and how much you feel it is worth. Or else you'll ALWAYS be know as the "cheap guy".
@@WhoGoneStopMe925 I didn't say I charge $50 I was just giving an example. I do not do hourly. Furthermore, cost varies depending on location and state. If you live and work in a area that is upper class, you can certainly charge that much, but if you live and work in an area that is low income, you cannot.
This was very helpful. I started a small electric company/ handyman business and I've been struggling a lot. I am licensed and everything. This video is helping
I am a handyman and I charge by the hour. It is the fairest thing to do. If I charge by the job, and unexpected issues come up, you can be sure I will find a way to cut costs elsewhere. I have no choice - I have a family to feed and I don’t work for free. That scares off some clients but I have no trouble finding enough clients that “get it”. Many clients only care about the lowest price - I leave those clients to someone else.
@@theamerican4609 which is what most guys do … for sure you need the confidence of the client to charge by the hour - but just wondering,: if you are way over budget, do you cut corners or take the loss? My buddies either cut corners or ask for more money, which kinda defeats the purpose of a fixed rate. Whatever works to put food on the table and allows you to provide a professional service is good.
@@bl9531 I always take the loss. Its my fault I undercharged and take it as a learning experience and I will estimate the subsequent similar job better next time.
@@theamerican4609 you sound like a very reputable contractor. There is no arguing with the way you operate. I am actually worse than I suggested earlier - I work for an hourly wage AND I charge the cost of materials + 10%. That formula saved me in 2020 when lumber prices suddenly exploded but like I said, whatever works for you is the right formula.
Money is value. If something costs a $100 then someone perceives it to be worth $100. If something costs $500 there is more value assigned to it. Things that are given away for free are perceived as having little value. It sounds backwards but things that cost a lot are valued more. Charge enough for your work!
@@handymanjourney The problem is when you think you're doing someone a favor by giving a discount. Then they actually value the finished work less. Better to command a high price and stick to it.
I was in sales for years. As soon as you drop price to quickly, the product begins to lose value quickly. Build value and charge accordingly. Explain the details of the work to be performed(same as listing product features). Position yourself as an expert on the work to be performed, or build their opinion of your ability to perform the work competently and correctly.
I love these videos Allen. I keep making the same mistakes myself. It isn't my work that is the issue but my pricing. I get to the end of my jobs and I have undercharged 90% of the time. Occasionally I get to the end of a job and think I have made really good profit but really I just got those ones right. I just need to grow some balls and quote higher, expecting there too be plenty of issues along the way that I can't see whilst quoting.
Such good introspection man! It's important to realize our weaknesses and work on them because I made the same mistake for years! Have you read the book, handyman pricing handbook? I would recommend you check it out for this exact issue. I am glad this video was helpful for you!
Wow, this is so helpful. Thanks a lot for sharing all this info. Unfortunately, I’ve made all of this mistakes that you’ve mentioned, but somehow I got to learn the hard way. Everything you shared has serve as a good reminder. God bless you.
Thanks man! I am glad this video helps! I do teach business classes over at handymanjourney.com we are also having a handyman growth convention October 2023! Get more info on the website!
I like what you said about QUALITY work ! I was using a handy person.. who claimed to “do it all” !!! Every single time I had the person come to my home to do something .. I either had to call them back to correct a problem (installing a outdoor sensor light that didn’t work correctly) or called in someone else to correct the other person’s work !!!!!!
I am glad that not charging enough came up. I came up with my handyman business in an area where people hardly charged anything. At first I started charging about what they were then quickly I doubled and now I don't even tell people what I charge per hour I just charge by the job right in profit, markup materials etc. I believe this is something that takes some time to figure out it does not something that you can start a business and just be getting full market value right off the bat, it take some time to build your brand!!
Mark up materials really why ? You don't sell material if anything charge for your time time you arrive to you leave on an hourly rate and be fair and do great work. If you marked up material I'd never hire you .
@@sifusays9242 I only work for certain types of people by the sounds of it you would flag my radar and I would probably say I'm not interested in your project, most of us have been so busy last few years there's no time for Karen's or tire kickers. How would you know that I'm marking materials? It's not like I advertise this? At the end of the day I am not an employee for somebody who works for an hourly wage I am somebody who runs a business and has to bring an extra money into the pot or things like vehicle repairs, insurances ,gas. I actually just started writing in profit and some material markups on smaller jobs not always in last 2 years. Most of my profit and markup goes into the bigger bidded jobs so $3,000 and up. When it comes to smaller jobs like Alan does, I have just been flat quoting them. Working for an hourly rate does not work unless you are in the $100-120 an hr range. Because of my rate I am mainly working for larger management companies, and commercial businesses I still work for a homeowner here and there. But overall businesses are about business and want to get on the schedule ASAP and don't bat an eye at the proposal. Still think you could afford me? Don't worry though I honestly get where you're coming from and there is someone for everyone, you will pick from the guy who smokes in your house or the guy that shows up in a beat down station wagon.
@@keithmarlowe5569 yeah Keith I do agree with you but I think in to break it all down it's more in terms of survival. So somebody can call themselves a contractor handyman overnight I just having a few basic tools. If you're hurt up for money and trying to figure out what to do it's easy to get into and of course when you're first getting into it most guys have to charge less because you don't know the ropes you don't know the politics and you simply have no experience to know what to charge. I have a background in education in several trades. So in no way do I advocate somebody just going out there and saying they can do this saying they can do that without any experience that is not what I did. In fact I apprenticed for 7 years or something like that before I ever went out on my own. In addition I don't think you can really survive and thrive if you don't have any experience people will be able to tell right away that you don't know what you're doing. Now that I look back and I think about competition the knuckleheads that are charging $20-$25 an hour they just make it easier for anybody who is really in the game. It gives the clients a distinct difference in services. The guy above who commented about not wanting somebody to mark up materials well that's fine and dandy he is looking for a different type of service provider. He is looking for the cheapest guy which is fine there are people to fill that slot. There are also people that will pay more for security in the project. In bid on a bathroom and to be fair we say it is 7-8k Handy Andy comes in and says all I can do it for $2500 no obviously the guy that commented on my comment above is going to pick the 25 guy. Little does he know the project cannot be done for this materials alone might be more than that he's already paid half down. I've seen this happen before but once Andy gets about halfway through the project and realizes he's out of money he splits. You get what you pay for people just because somebody gives you a cheaper price doesn't mean it's better!! And I guess that goes for the extremely high prices as well it doesn't mean you're going to get better service because somebody profits an extra five grand on the bathroom.
@@handymanjourney Alan this is always something that is run across my mind and I would have wanted to try just don't know how but whenever I think of it you come to mind at least helping the dream become a reality. Could the handyman industry be unionized?
This guy could do a great Richie Cunningham impression (In fact, I think he's doing one! :D). When I was doing handymanning 30 years ago, I used to first establish what I wanted to make per hour. At the time $25. Then tack on overhead, cost of materials, supplies, wear and tear on the tools, etc. Used to worry that I would price myself out of the market...but since I was very reliable, honest and competent, my clients all loved me, and I never had to advertise- I'd get all of my bidness by word-of-mouth.
Awesome video! I’m definitely going to be keeping this ideas in mind as I grow my handyman business from owner-operated with inexperienced employee to a more hands-off approach with multiple employees.
Great non video. I have tried to grow my business for many years now with no luck (7). It's very difficult to find and retain good people. Had an admin part time that worked out well until she decided to go full time with her other job. And helper that would just drain my bank account. I discovered that paying them hourly they would just take longer to do simple jobs to make more money. its been tough on mind and body working by myself but also less stressfull
It's definitely less stressful to be by yourself. Growing isn't impossible because many others have done it! I would recommend you to check out group coaching here: handymanjourney.thinkific.com/bundles/the-handyman-journey-essential-membership It is a group dedicated to helping other handymen grow with employees. Seen a lot of great success!
Try paying a salary that would match your hourly rate that you're offering now if you're busy enough so that they'll be more efficient. Maybe add incentives or bonuses for completing a certain amount of work in a month. Employees who care more about your bottom line than their bottom line are rare, and with good reason. They're working to get a paycheck and support themselves and their family. If they're paid hourly, there's no incentive to be quicker because they'll make less.
Bonding and insurance for the small-time operator would be a good subject. I underestimate how long tasks will take, which is my greatest weakness. I'm 62, a retired Army officer, and have been converting a church building into a house. Everything takes longer than you think. I know how to do quite a bit, and if I go the handyman route, I would have to say "no" to several things where it's not my skill set. I've restored antiques for many years, and have a good workshop. I've figured out, working on the building, that you have to make extra trips because you don't have the right tool.
That is a very good point! We have niche down our services quite a bit to avoid some of that hassle. So we really only do small maintenance style items that are fairly common, if there's anything a little bit out of the ordinary we usually turn it down, not because we can't do it but we just can't factor in for all the variables and still make a good profit
I've found that when it comes time estimation, it's best to double the amount of time you think it'll take, then add two days & you'll be close. Particularly if it's a more complex project.
I had a handyman business for about 20-plus years in Scottsdale, AZ. You can try to get hooked up with a management Company, they'll keep you busy 7 days a week. I never worked by the hour, I only gave a finished cost for labor. Watch quoting pricing for materials. They keep changing every day. I never made less than 6 figures a year. I'm 76 now & retired. Please don't negotiate your prices, just walk away from that person. They'll nickel & dime you afterward.
Right on, I have noticed if I charge to little for a job I have set expectations for the future making it difficult to get what I want on repeat work with this customer.
I like the cheap handyman jobs people go with. Now as a licensed and insured contractor I have to deconstruct shoddy work and re do the job. Usually done by a unlicensed person.
This video was amazing and it has help me more to be better a things I didn’t know. I have loss customers because I thought I was estimating too high. I think I do quality work and every time I had a potencial client and said ohh it’s too high I would loss hope . I do have clients I been doing work for the past 4 years before doing this full time and they keep calling me back which is great since I started on my own 4 months ago.
Charging what we are worth is a tricky thing. It has always been this way for me. If I do a job for 500.00 but know that I really should have charged 800.00 or 900.00, yes that is upsetting, but at this same time I know if I would have asked for 800.00, I wouldn't have gotten the gig. So I'd rather do the job for 500.00 and forget about it. I appreciate what you are saying...everyone should be payed what they are worth (wouldn't that be a wonderful world?)...but it's not that easy to do. If I charged what I was worth, it would be a wonderful life...but most of the time I take what I can get because I need to pay the mortgage. --If someone has the answer to this ubiquitous problem, please enlighten us all.
I am at that crossroad as well. I love to charge what I'm worth, but l don't have many clients yet. I feel raising my cost will scare away who l have at the moment. If l had more clients l could slowly raise my rates.
I've been on my backside for awhile due to some health issues. I'm fighting my way back. I've been laid off (tech worker). I've been around tools, technology, electricity & plumbing (lost count of toilet replacements, switches, outlets, garbage disposals). And I like to turn a wrench. Goals I LOVE this video, I like your business model, do you franchise? Your kids are going to college wherever they want.
@@ethanrichard4950 Not really, it's gone a little sideways, but I'm hopeful. I'm on new health insurance and I've got a lot of help on the way. So I'm better than before, but still more to do.
I totally agree with the point about communication, for example when i say to people a job will cost between 600 and 800 pounds depending on various factors , the customer only hears the 600 part.
great post, brother. Been following you for months now, and I've learned a ton. Essential Craftsman is one of my top channels too! Keep on keeping on man, and sincere thanks for helping me (and my family !) succeed.
Great video. Thank you. I’m curious to know if you funded your early growth and the “admin heavy” approach with debt, or if you used business cash flow only? I too favor the admin heavy approach but funding it can be a challenge and I’m interested to hear the perspective and approach of others.
I have grown by avoiding debt, I know people who have used debt, that is definitely an option but I personally want to avoid it as much as possible. Thanks for your comment!
One thing you may be missing about not charging enough is that people hire handy men because they don't want to pay more in the first place and if the homeowner tries to dicker your prices you may feel that you have to reduce them to get a job.
That's a mindset piece for sure. There's no reason why you can't charge a fair price just because you are a handyman, in some cases you should charge more than say a plumber because you can do more skills than a plumber.
I've been watching your videos since you started making them. Your channel helped me a lot when I started my business. I still feel like I don't charge enough sometimes. I aim for at least $300/day. Maybe I should try for no less than $500/day.
Another great piece of work madman. Always interested in what you've got.....But please,.. don't ever cross over holding the work, (13:15) guard or not, more than once, I've seen that blade, bite.. and take off out and up. taking a finger doe's less damage.
Great video great info great motivation 👍 👏! I've always done handyman work and gone back and forth from working for myself then going back to a company. Under pricing, finding help, and fear. Fear of having the ROC called on me. I've seen it happen. How do you, or what's your advice on how to handle the "handyman rule"? You can't exceed more than a certain amount of monies per job per year. Something along those lines. Does the handyman rule vary from state to state? I better look this up, I'll come back to this question. Thanks.
Yes make sure you do your research because it does vary state to state, I actually took a few classes on the rule in my state at the contractors board. That was helpful for clarity!
Just finished remodeling someone's shower they then asked me to replace their front exterior door. I've always heard that's usually $750 or so. I've done a few at that price and been fine. They tell me they were quoted $3k-$5k. Thinking there's something new I don't know about I say I'd do it for $1200-$1500 they agreed to that price. This is in Pittsburgh.
1. Dropping a wrench on a priceless vase. 2. Accidentally walking in on client's teenage daughter showering. 3. Flooding the entire basement. The ENTIRE basement. So that it's completely full to ground level. 4. Incorrect use of dynamite. 5. Farting
Started in this business 30 years ago in a small town in New York State. I have always operated my pricing plan the same way since I began. I started at $100 dollars a day, which seemed like a good income at that time. If I wasn't retired last year, this year I would be charging $1500 per day. So first off let me explain. Two things I do that some people may not agree, but I haven't found any other way to deal with some specific issues. For instance people calling and asking me to do a job without adequately explaining exactly what they need to do the job correctly. So I quickly learned that going and giving free estimates is a waste of time which I couldn't sustain as a business owner. So I charge from the very first moment I go to drive to their location. So no free quotes as It depends on the job and how long I estimate it will take me to do the correct way. So I charge them an initial fee just to go there and estimate the job which I'll explain how that pricing works. So last year I was charging $1400 a day minimum. So If I estimate the job will take me an hour minimum, that would be 1/8th of my $1400 daily charge. In other words $1400 / 8 =$175 hour. But I never tell them a per hour charge, it is a per job charge. So if I think the job will take me three hours I may charge them $175 per hour or $525.00. However this frees me up to add on shit factor. If I can only park at the bottom of the hill and have to transport a lot of tools or supplies up that hill by hand or cart or whatever I will charge them a shit factor. If I don't like something about the customer I may boost the price high enough I'm sure they'll back out of it. But if they don't, then I'll be sure to get at least half down payment before I'll even start. There is too much work out there for nice people to waste my time on sour people. So one last bit of advice for you guys who are new to this business. Think long and hard before being hired by other businesses like contractors. Why are they interested in hiring you, why can't they hire competent subs instead of a independent handyman ? It quite often is because they are Assholes who've worn out there welcome amongst the local tradesmen for one reason or another, usually unpaid employment.
I spent 37 years in the concrete flatwork business & as an owner my “ shit factor “ was what I called a “ nightmare charge “ Within 10 minutes I could tell that they were going to be a nightmare to work for…so once I figured out the “ I don’t want this job but if I get it I’m going to kill it “ price then added “ if you know so much about pouring concrete…why am I here “ ( NIGHTMARE CHARGE ) 1 last piece of advice…if a homeowner/contractor wants anything extra NEVER move forward until you have put it in writing & signed by homeowner/contractor….CHANGE ORDER will guarantee there’s no confusion when presenting final bill
About charging a price, with some clients it can be a push back and forth. Just the word 'handyman' for many clients implies ' cheap labor, whereas a reputable handyman can be 100% professional and has the skills to do a fine job. A serious handyman is a contractor. Some clients need to change mentality and pay what is justified and reasonable in an estimate.
I just watch it and it's a lot complex to what my business is I am a very small company with just me and I am looking for a helper but don't know should I pay him by the hour or by the day
Although I agree that “ supply and demand “ ultimately drives the pricing ( economics 101) …. I just can’t morally and/or ethically do it. I feel in my heart that it is exploitative.
This is going to sound harsh but if you don’t know what your operating & overhead costs are then you have no business being in business! This should be the first thing you do when considering starting a business…sadly many don’t understand this.
Enjoyed your video I can speak from experience 20 years in the mining sector 35 employees heavy on the service side it almost put me in the grave expert knowledge help in certain areas is a must not an option
Are any jobs left that handymen can do legally though, because handymen can be arrested by the law for doing work that requires licensed/certified professionals.
The state of California will only allow a handyman to perform jobs that material and labor combined must be $500 or lower. Otherwise you would be required to have a contractors license.
Rule of thumb is 2 times material But if you can't for see the future communication is key. What looks to be one thing Can be another. Brace your clients and you are a hero when you go Below a cost .when it's below great if above you have let the client know you are not a magician for reality. They know this and so do you. The real thing is being honest
How do you have employees? Is it a GC license? I'm reading I can't have employees, I can't even have someone working with me, that it all has to be solo.
6.5 years and your pricing ideal is still way to complicated. All of this pricing structure can be tossed for an easier system. I'd share this with you if you want.
*Customer Perspective* : I want an estimate and final bill that mirrors the approach my mechanic takes. He's transparent in breaking out parts, shop supplies, recycling/ disposal fees, and labour ( hours * hourly rate ). The fact that 99% of house related contractors don't do this, and refuse to even estimate these things in some detail is a huge red flag in the industry. I totally disagree with your approach. My contractor breaks everything out. We both agree that an estimate is an estimate. Weather with impact things. That's reasonable and logical. Material prices may vary (I've had both discounts and extras - my contractor passes on the benefit, and adds a charge for the extras). If there are delays from subcontractors, that's on him. He's built that into his rate. When he does estimate callouts in the evening to clients, that's built into his rate, and for bigger jobs, he'll charge for an estimate. I get a bill that breaks everything out. He drives a new BMW and has a huge top of the line Mercedes panel van. He's not cheap. I don't begrudge him his profit - he works hard for it. He and his crew show up on time; wear all the right H&S gear; have an obviously organised site set up; those who moke do it in one designated area at the end of the site; they appear to have an allergy to dust as they use an industrial dust extraction vacuum on nearly every cut/ bore/ drill. They manage expectations, flag delays early, are courteous to the missus, and call back a couple of months, and then at 6 months to check that everything is as it should be ( testing hinges, floor squeaks, mitre gaps etc. ). Once you've seen a couple of cowboys tie their horses up in your front garden and gunter simple jobs, you'll happily pay a premium for a hassle free process, and a delivered product that does what was promised. I recommend him far and wide with the caveat that he's expensive, but worth it. I'm too poor to pay a cheap contractor
Remodeling GC here with a business for 20 years with revenues of about $600-750k/yr and several employees- Of course we all are working hourly, whether you realize it or not. Every quote you write can be broken down to an estimated hourly rate. If the business is a service business, it all revolves around labor and the rate of that labor. There can be a large range to that rate. About 1/3 of our work is time and material. Mostly the repair jobs and the “handyman lists”. There’s a lot of upside- no risk, no stress, guaranteed profit, no time spent quoting, add ons/ removals are easy. You won’t have a windfall profit, but you rarely do when you quote jobs anyway. If I have 3 guys out on a job at $105/hr, I know I’ve got $12,600 per week in revenue, which lines up with our typical numbers anyway. The only caveat- have a minimum labor charge. Mine is $300, mostly to keep the tiny jobs at bay. More expensive areas may be more.
Yes but if you charge too much, your clients will just find someone who charge less. Plubmter for example charges $300 to fix drain clog. Well we no longer hire any plumbers because they charge too much.
Don't give a low price this time so you can set your self up to lose more money next time. Bid each project as it stands not In hope of the next one. Good luck guys.
been in the handy man business 53 years . if your dealing with landlords who have multiple properties good luck with a fair wage a nd that's keeping it real .
From my experiences working in the Middle East, the more wealthy the client is, the more likely they will stiff you. Every contractor wants the future work, but the rich know they can easily stiff people at least once. They will plead for changes and upgrades and then complain about any additional fees. You want to get paid, so you play nice. They know the reason they're rich is they are able to extract wealth from the working class.
@@handymanjourney I also had a bad experience in NC with a devout Southern Baptist couple. They were guilt free about their poor opinion and treatment of "others". That was in the '80's. I've since had other bad experiences with wealthy people, who never seem to have to pay for their extravagant meals. Many wealthy people in the USA feel no guilt stealing and grifting from everyone around them.
Maybe for the part itself, but there is no reason- unless the billing for the job is on the high side already- to include the labor for changing the angle stop.
@@coreyfranco7060 😏😂 I'm a handyman with deep plumbing skills. Changing an angle stop is not a deep plumbing skill. It's rarely more difficult than changing a wax ring under a toilet, but it's a different task and has its own timeframe.
@@primalartifice its disrespectful to the people that took the time to get a plumbing license and is illegal in most states. If you want to do plumbing then get a job as a plumbing apprentice and work your way up like everyone else...
All that is good and well but you missed the most important thing?? Do the job like a pro not a Handyman this will serve you best when people are happy, and people talk that turns into more work. Doing a hack job never pays LOL 🙂
I have lots of work just give me a deal dont worry its easy , I would do it myself but just dont have the time.. undermining you All it needs is one coat.. 😂 no dont do it they wont be happy and it will be your name on the line.
Having a handyman business myself for the past 10 years. I have a hard time believing you're making much of a profit, if any at all, being so heavy on the admin side and business cost with only 2 techs in the field. I think you're way to heavy on your cost to do business with how many techs you have. That's just my 2 cents but I hope you do well.
@@handymanjourney good luck on you business venture. Hardest thing I've found running a handman business is finding good well rounded techs in this field willing to work for you. It's much more rewarding to work for yourself. With that said, be carefully on creating too much extra cost.
Starting to wonder why i bothered getting any licenses, i expect maybe 100/hr for electrical service work and handyman get that for replacing a mailbox...
@@coreyfranco7060 Just sayin how it is. I’m a long time contractor and learned A LONG TIME AGO that whatever you quote someone, there’s ALWAYS someone who’s uninsured, un licensed and working for cash nippin at your heels ! A lot of cops, fireman and teachers “ in busness too” !
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Thank you all for watching.
Here is a great book for establishing your pricing that I recommend you check out: www.amazon.com/Handyman-Pricing-Handbook-confident-pricing/dp/B096TWBF1Q/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=&sr=
Thank you!
Your so welcome!
The Essential Craftsman said it best. "If you aren't losing about 50% of your bids because your bids are too high, then you aren't charging enough." There is no shortage of people that will want you to work for nothing. Those kinds of 'customers' will put you out of business. Just walk away.
Yes so very true!💪
That’s what I do
I only get 20-25% actually. I wouldn’t mind bumping that to 25-30% though. Past that, in my area for what I do, I believe I would just be burning money
I can always accept good advice from someone who admits their own mistakes. Great channel.
Thanks for being here!
New subscriber. 5 years in this profession after 20 in education. Love the vocation. Love the freedom. Love the people. Blessed to be doing this.
💪💪💪🔥 thanks for being here! Keep up the great work!
At 63 I took early white collar corporate retirement (I was a Dir. of Human Resources) and I decided on a second life as a blue collar handyman. I'm now 72. The Handyman Life is fun and addictive. For fun, I still do small Work Orders for a Property Company and private home owners. Just last week, a client lady wanted her gas log fireplace available for her Christmas home party. I replaced a gas fireplace burner assembly and made $200. I can't... stop... handyman-ing...
Awesome!! It is addicting!!💪
That wouldn't happen to be the same gas fireplace that caused the house fire a few days ago, would it? How much is handyman insurance anyway. Seems like it would be really high due to the untrained, unskilled workforce.
That’s probably a job best left to professionals. If you have anything to lose, I hope you carry liability insurance. Not smart.
Your messing around with gas fireplaces you idiot
How did you meet or get connected with your property management people? I just started a business and i been thinking a property manger/ investor is my most realistic option to survive as a start up business
I like that you reflected on the leadership skills AEB caring for and nurturing your team. This is critical and not opened for discussion. Your core values are also essential. Without it there is nothing. Great presentation! Semper Fi
Thanks man!💪
Great topic Allen! Personally, I believe that a handyman is a contractor. The work we are hired to do by a homeowner or a property manager is contract work. I know that the work we can do differs from state to state. However, until a handyman or woman treats what they do as a business, the stigma will always be there. I work "solo" and you're absolutely correct about the day ending much later for those of us who wear multiple hats. Thanks for taking the time to share!
Your so welcome j! Appreciate your comment and I am glad this video was helpful for you!
I've been a full time handyman for 5 years now. I'm going to give you guys some advice you might appreciate.
(1) Don't ever give an estimate upfront . Write down everything, then take the information home and break it down carefully. This is important for one reason. If you rush or get pressured by the client you will probably charge too little. Take your time and you are very unlikely to undercut yourself.
(2) Do not put the cost of material in your estimate. It's too much work to determine exact cost, and if you end up paying more than you estimated you're either going to eat the cost or have a upset client.
(3) Either text or e-mail your client the estimate and be specific about the work so there is no confusion. For example: "paint only bathroom walls in hall bathroom. Material is not included in this estimate.." This means I'm only painting the wall. Not the ceiling, not the trim, not the doors. I have had clients try to tell me I was supposed to do something but I went back to my estimate and was able to point out that it's not there in the estimate.
(4) do not ever work for hourly pay. You will be taken advantage of and you will lose money this way. For example, if say I was charging $50 an hour and I'm installing a dishwasher. I can install one in less than a hour. However, I typically charge around $125 to install one. So you see, I'm losing money. Furthermore, telling a client I want $50 an houris likely to scare them off because they don't understand.
(5) Don't budge on your estimate. The reason you want to do your estimate over text or email is to avoid any kind of confrontation if they think the price is too high. In any case, you'll have time to think before responding. Don't worry too much about if you get the job or not. Know your worth. If it's too high for them, go to the next job. When I first started I used to try very hard to get every job. Now I give my estimate and if they don't like it, I'm off to the next job. I do not have time to be wasting my time. You have to understand that some people are simply difficult and will not be satisfied until you undercut yourself.
Thank you! I am glad this video was helpful for you!
I charge $100 an hour here in the Bay area, and I haven't had one customer ask "why so much"? $50 an hour as a handyman is horrible, straight out of business. Bid the job on skill it will take, time it will take, and how much you feel it is worth. Or else you'll ALWAYS be know as the "cheap guy".
@@WhoGoneStopMe925 I didn't say I charge $50 I was just giving an example. I do not do hourly. Furthermore, cost varies depending on location and state. If you live and work in a area that is upper class, you can certainly charge that much, but if you live and work in an area that is low income, you cannot.
This was very helpful. I started a small electric company/ handyman business and I've been struggling a lot. I am licensed and everything. This video is helping
That's great David!
Which was the most helpful tip for you?
I am so glad this video was helpful for you!
I am a handyman and I charge by the hour. It is the fairest thing to do. If I charge by the job, and unexpected issues come up, you can be sure I will find a way to cut costs elsewhere. I have no choice - I have a family to feed and I don’t work for free. That scares off some clients but I have no trouble finding enough clients that “get it”. Many clients only care about the lowest price - I leave those clients to someone else.
Smart move, often times people who are looking for the cheapest cost aren't your ideal clients!
I think it is just as fair if I charge a flat rate.
@@theamerican4609 which is what most guys do … for sure you need the confidence of the client to charge by the hour - but just wondering,: if you are way over budget, do you cut corners or take the loss? My buddies either cut corners or ask for more money, which kinda defeats the purpose of a fixed rate. Whatever works to put food on the table and allows you to provide a professional service is good.
@@bl9531 I always take the loss. Its my fault I undercharged and take it as a learning experience and I will estimate the subsequent similar job better next time.
@@theamerican4609 you sound like a very reputable contractor. There is no arguing with the way you operate. I am actually worse than I suggested earlier - I work for an hourly wage AND I charge the cost of materials + 10%. That formula saved me in 2020 when lumber prices suddenly exploded but like I said, whatever works for you is the right formula.
Money is value. If something costs a $100 then someone perceives it to be worth $100. If something costs $500 there is more value assigned to it. Things that are given away for free are perceived as having little value. It sounds backwards but things that cost a lot are valued more. Charge enough for your work!
Yes, I totally agree! Cost creates perceived value!
@@handymanjourney The problem is when you think you're doing someone a favor by giving a discount. Then they actually value the finished work less. Better to command a high price and stick to it.
I was in sales for years. As soon as you drop price to quickly, the product begins to lose value quickly. Build value and charge accordingly. Explain the details of the work to be performed(same as listing product features). Position yourself as an expert on the work to be performed, or build their opinion of your ability to perform the work competently and correctly.
I love these videos Allen. I keep making the same mistakes myself. It isn't my work that is the issue but my pricing. I get to the end of my jobs and I have undercharged 90% of the time. Occasionally I get to the end of a job and think I have made really good profit but really I just got those ones right. I just need to grow some balls and quote higher, expecting there too be plenty of issues along the way that I can't see whilst quoting.
Such good introspection man! It's important to realize our weaknesses and work on them because I made the same mistake for years!
Have you read the book, handyman pricing handbook? I would recommend you check it out for this exact issue.
I am glad this video was helpful for you!
Maybe go hourly?
Good resourceful video Lee, they way you start and follow through
I am glad this was help for you! Thanks for your comment!
Excellent comments on building your business. Hope 2023 is a good year for you and your staff.
Thank you Michael! I appreciate the comment! I am glad this video is helpful!
I hope your 2023 is great aswell!
Very good content and thanks for sharing
Great video, thank you!
Your welcome! I am glad this video was helpful for you
Wow, this is so helpful. Thanks a lot for sharing all this info. Unfortunately, I’ve made all of this mistakes that you’ve mentioned, but somehow I got to learn the hard way. Everything you shared has serve as a good reminder. God bless you.
Thanks for the great information, I am a new business owner and those 5 mistakes I have been dealing with since I decided to launch my business.
You are so welcome! I'm glad this video was helpful for you!
Thanks for the insight, much appreciated
Your so welcome! I am glad this video was helpful for you
How do you deal with bidding with the $500 max including material in Sacramento? I just moved out here it’s insane trying to do things by the book
You ought to teach a business class - that was wonderful and correct. I've made the mistakes that you mention, just to get another job.
Thanks man! I am glad this video helps! I do teach business classes over at handymanjourney.com we are also having a handyman growth convention October 2023! Get more info on the website!
I like what you said about QUALITY work ! I was using a handy person.. who claimed to “do it all” !!! Every single time I had the person come to my home to do something .. I either had to call them back to correct a problem (installing a outdoor sensor light that didn’t work correctly) or called in someone else to correct the other person’s work !!!!!!
Ya it could be a little troublesome when someone says they do it all! Very few people are 100% good at everything!
“Every single time.”
You must like hiring the cheap guy, because you kept calling him back even though their work wasn’t up to snuff..🤔
@@ryanmcclendon3309 lol
Hello thanks for the info. Im in the process of starting my own Handyman business .
This was another great video. Enjoyed the last one but this one adds more to my confidence.
Thanks Jon, I appreciate it! I am glad this video was helpful!
I am glad that not charging enough came up. I came up with my handyman business in an area where people hardly charged anything. At first I started charging about what they were then quickly I doubled and now I don't even tell people what I charge per hour I just charge by the job right in profit, markup materials etc. I believe this is something that takes some time to figure out it does not something that you can start a business and just be getting full market value right off the bat, it take some time to build your brand!!
I agree. It takes awhile to find tune your pricing aswell! I am glad this video was helpful for you!
Mark up materials really why ? You don't sell material if anything charge for your time time you arrive to you leave on an hourly rate and be fair and do great work. If you marked up material I'd never hire you .
@@sifusays9242 I only work for certain types of people by the sounds of it you would flag my radar and I would probably say I'm not interested in your project, most of us have been so busy last few years there's no time for Karen's or tire kickers. How would you know that I'm marking materials? It's not like I advertise this? At the end of the day I am not an employee for somebody who works for an hourly wage I am somebody who runs a business and has to bring an extra money into the pot or things like vehicle repairs, insurances ,gas. I actually just started writing in profit and some material markups on smaller jobs not always in last 2 years. Most of my profit and markup goes into the bigger bidded jobs so $3,000 and up. When it comes to smaller jobs like Alan does, I have just been flat quoting them. Working for an hourly rate does not work unless you are in the $100-120 an hr range. Because of my rate I am mainly working for larger management companies, and commercial businesses I still work for a homeowner here and there. But overall businesses are about business and want to get on the schedule ASAP and don't bat an eye at the proposal. Still think you could afford me? Don't worry though I honestly get where you're coming from and there is someone for everyone, you will pick from the guy who smokes in your house or the guy that shows up in a beat down station wagon.
@@keithmarlowe5569 yeah Keith I do agree with you but I think in to break it all down it's more in terms of survival. So somebody can call themselves a contractor handyman overnight I just having a few basic tools. If you're hurt up for money and trying to figure out what to do it's easy to get into and of course when you're first getting into it most guys have to charge less because you don't know the ropes you don't know the politics and you simply have no experience to know what to charge. I have a background in education in several trades. So in no way do I advocate somebody just going out there and saying they can do this saying they can do that without any experience that is not what I did. In fact I apprenticed for 7 years or something like that before I ever went out on my own. In addition I don't think you can really survive and thrive if you don't have any experience people will be able to tell right away that you don't know what you're doing. Now that I look back and I think about competition the knuckleheads that are charging $20-$25 an hour they just make it easier for anybody who is really in the game. It gives the clients a distinct difference in services. The guy above who commented about not wanting somebody to mark up materials well that's fine and dandy he is looking for a different type of service provider. He is looking for the cheapest guy which is fine there are people to fill that slot. There are also people that will pay more for security in the project. In bid on a bathroom and to be fair we say it is 7-8k Handy Andy comes in and says all I can do it for $2500 no obviously the guy that commented on my comment above is going to pick the 25 guy. Little does he know the project cannot be done for this materials alone might be more than that he's already paid half down. I've seen this happen before but once Andy gets about halfway through the project and realizes he's out of money he splits. You get what you pay for people just because somebody gives you a cheaper price doesn't mean it's better!! And I guess that goes for the extremely high prices as well it doesn't mean you're going to get better service because somebody profits an extra five grand on the bathroom.
@@handymanjourney Alan this is always something that is run across my mind and I would have wanted to try just don't know how but whenever I think of it you come to mind at least helping the dream become a reality. Could the handyman industry be unionized?
This guy could do a great Richie Cunningham impression (In fact, I think he's doing one! :D). When I was doing handymanning 30 years ago, I used to first establish what I wanted to make per hour. At the time $25. Then tack on overhead, cost of materials, supplies, wear and tear on the tools, etc. Used to worry that I would price myself out of the market...but since I was very reliable, honest and competent, my clients all loved me, and I never had to advertise- I'd get all of my bidness by word-of-mouth.
Awesome
Awesome video! I’m definitely going to be keeping this ideas in mind as I grow my handyman business from owner-operated with inexperienced employee to a more hands-off approach with multiple employees.
Great non video. I have tried to grow my business for many years now with no luck (7). It's very difficult to find and retain good people. Had an admin part time that worked out well until she decided to go full time with her other job. And helper that would just drain my bank account. I discovered that paying them hourly they would just take longer to do simple jobs to make more money. its been tough on mind and body working by myself but also less stressfull
It's definitely less stressful to be by yourself. Growing isn't impossible because many others have done it!
I would recommend you to check out group coaching here: handymanjourney.thinkific.com/bundles/the-handyman-journey-essential-membership
It is a group dedicated to helping other handymen grow with employees. Seen a lot of great success!
Most states dont allow you to hire employees as a handyman business
Try paying a salary that would match your hourly rate that you're offering now if you're busy enough so that they'll be more efficient. Maybe add incentives or bonuses for completing a certain amount of work in a month. Employees who care more about your bottom line than their bottom line are rare, and with good reason. They're working to get a paycheck and support themselves and their family. If they're paid hourly, there's no incentive to be quicker because they'll make less.
Sorry to hear that.
Have you had any success since this comment?
@@ethanrichard4950 I have a family member help once in a while and pay a flat rate per day. I try not to take on bigger jobs.
Words of wisdom “under promise, over deliver”
Yes!💪
Bonding and insurance for the small-time operator would be a good subject.
I underestimate how long tasks will take, which is my greatest weakness. I'm 62, a retired Army officer, and have been converting a church building into a house. Everything takes longer than you think. I know how to do quite a bit, and if I go the handyman route, I would have to say "no" to several things where it's not my skill set. I've restored antiques for many years, and have a good workshop. I've figured out, working on the building, that you have to make extra trips because you don't have the right tool.
That is a very good point! We have niche down our services quite a bit to avoid some of that hassle. So we really only do small maintenance style items that are fairly common, if there's anything a little bit out of the ordinary we usually turn it down, not because we can't do it but we just can't factor in for all the variables and still make a good profit
I've found that when it comes time estimation, it's best to double the amount of time you think it'll take, then add two days & you'll be close. Particularly if it's a more complex project.
I really wish you were here right now I wish you wouldn't have someone s*** over absolutely nothing wish you were in my arms
I had a handyman business for about 20-plus years in Scottsdale, AZ. You can try to get hooked up with a management Company, they'll keep you busy 7 days a week. I never worked by the hour, I only gave a finished cost for labor. Watch quoting pricing for materials. They keep changing every day. I never made less than 6 figures a year. I'm 76 now & retired. Please don't negotiate your prices, just walk away from that person. They'll nickel & dime you afterward.
Great information I wish I could do my handyman business full-time. Yet there is only enough work in my city to support me on Saturdays only.
What city are you in?
Watertown ny@@handymanjourney
Right on, I have noticed if I charge to little for a job I have set expectations for the future making it difficult to get what I want on repeat work with this customer.
That's good and so true! I am glad this video was helpful for you
I like the cheap handyman jobs people go with. Now as a licensed and insured contractor I have to deconstruct shoddy work and re do the job. Usually done by a unlicensed person.
Hey thanks for your comment!
This video was amazing and it has help me more to be better a things I didn’t know.
I have loss customers because I thought I was estimating too high. I think I do quality work and every time I had a potencial client and said ohh it’s too high I would loss hope . I do have clients I been doing work for the past 4 years before doing this full time and they keep calling me back which is great since I started on my own 4 months ago.
That's so awesome! I am so glad this video was helpful for you!
Charging what we are worth is a tricky thing. It has always been this way for me. If I do a job for 500.00 but know that I really should have charged 800.00 or 900.00, yes that is upsetting, but at this same time I know if I would have asked for 800.00, I wouldn't have gotten the gig. So I'd rather do the job for 500.00 and forget about it. I appreciate what you are saying...everyone should be payed what they are worth (wouldn't that be a wonderful world?)...but it's not that easy to do. If I charged what I was worth, it would be a wonderful life...but most of the time I take what I can get because I need to pay the mortgage. --If someone has the answer to this ubiquitous problem, please enlighten us all.
Thanks for your comment!
I am at that crossroad as well. I love to charge what I'm worth, but l don't have many clients yet. I feel raising my cost will scare away who l have at the moment. If l had more clients l could slowly raise my rates.
@@yinglouie9663 Yeah it is a difficult thing to figure out. You make a good point..."if I had more clients...".
Hi Jay, great point. Don't happen to be from PA are you? I know some Umbles
@@matthewcanfield6748 Yes I am Matthew!
shout out essential craftsman, i was on their podcast last year!!! those guysbare awesome
Yes they definitely are!!💪
Thank you
Your so welcome! I am glad this video was helpful for you!
Hi Allen! Excellent video. You gave a lot of very good information and nailed the topics. Keep the videos coming!!
Hey thanks tim, I appreciate your comment and I'm glad this video was helpful!
I've been on my backside for awhile due to some health issues. I'm fighting my way back. I've been laid off (tech worker). I've been around tools, technology, electricity & plumbing (lost count of toilet replacements, switches, outlets, garbage disposals). And I like to turn a wrench. Goals
I LOVE this video, I like your business model, do you franchise? Your kids are going to college wherever they want.
Sorry to hear about the health issues.
Have you gotten better since your last comment?
@@ethanrichard4950 Not really, it's gone a little sideways, but I'm hopeful. I'm on new health insurance and I've got a lot of help on the way. So I'm better than before, but still more to do.
I totally agree with the point about communication, for example when i say to people a job will cost between 600 and 800 pounds depending on various factors , the customer only hears the 600 part.
Appreciate this buddy I'll be at the convention
Hey thanks Henry, I am glad this video was helpful for you!
Look forward to meeting you there!💪
How about #1, actually show up when you say you're going to. That's probably the only thing I need my handyman to do.
Highly appreciated insight from the working class trying to make a buck. Cheers.
Thank you! I am glad this video was helpful
Such great points!!! So true!
Thanks Bryan! I appreciate your comment! I am glad this video was helpful for you!
great post, brother. Been following you for months now, and I've learned a ton. Essential Craftsman is one of my top channels too! Keep on keeping on man, and sincere thanks for helping me (and my family !) succeed.
Your so welcome! I am so glad I could help!
Great video. Thank you. I’m curious to know if you funded your early growth and the “admin heavy” approach with debt, or if you used business cash flow only? I too favor the admin heavy approach but funding it can be a challenge and I’m interested to hear the perspective and approach of others.
I have grown by avoiding debt, I know people who have used debt, that is definitely an option but I personally want to avoid it as much as possible. Thanks for your comment!
One thing you may be missing about not charging enough is that people hire handy men because they don't want to pay more in the first place and if the homeowner tries to dicker your prices you may feel that you have to reduce them to get a job.
That's a mindset piece for sure. There's no reason why you can't charge a fair price just because you are a handyman, in some cases you should charge more than say a plumber because you can do more skills than a plumber.
I've been watching your videos since you started making them. Your channel helped me a lot when I started my business. I still feel like I don't charge enough sometimes. I aim for at least $300/day. Maybe I should try for no less than $500/day.
Love it man! I am glad I could be helpful! Be sure to check out the handyman pricing handbook to get your pricing in order!
How do I start working as a handyman? Is there an app to find clients? Or do I only post on Yelp? Thanks
Another great piece of work madman. Always interested in what you've got.....But please,.. don't ever cross over holding the work, (13:15) guard or not, more than once, I've seen that blade, bite.. and take off out and up. taking a finger doe's less damage.
Thanks Scott!
Great video great info great motivation 👍 👏! I've always done handyman work and gone back and forth from working for myself then going back to a company. Under pricing, finding help, and fear. Fear of having the ROC called on me. I've seen it happen. How do you, or what's your advice on how to handle the "handyman rule"? You can't exceed more than a certain amount of monies per job per year. Something along those lines. Does the handyman rule vary from state to state? I better look this up, I'll come back to this question. Thanks.
Yes make sure you do your research because it does vary state to state, I actually took a few classes on the rule in my state at the contractors board. That was helpful for clarity!
On your over communication take: I say don’t speak to be understood, speak to not be misunderstood.
I like it! Thanks for that! 💪
Just finished remodeling someone's shower they then asked me to replace their front exterior door. I've always heard that's usually $750 or so. I've done a few at that price and been fine. They tell me they were quoted $3k-$5k. Thinking there's something new I don't know about I say I'd do it for $1200-$1500 they agreed to that price. This is in Pittsburgh.
Awesome! It all depends on the size of door and if they have the material or not
1. Dropping a wrench on a priceless vase.
2. Accidentally walking in on client's teenage daughter showering.
3. Flooding the entire basement. The ENTIRE basement. So that it's completely full to ground level.
4. Incorrect use of dynamite.
5. Farting
Started in this business 30 years ago in a small town in New York State. I have always operated my pricing plan the same way since I began.
I started at $100 dollars a day, which seemed like a good income at that time. If I wasn't retired last year, this year I would be charging $1500 per day. So first off let me explain. Two things I do that some people may not agree, but I haven't found any other way to deal with some specific issues. For instance people calling and asking me to do a job without adequately explaining exactly what they need to do the job correctly. So I quickly learned that going and giving free estimates is a waste of time which I couldn't sustain as a business owner. So I charge from the very first moment I go to drive to their location. So no free quotes as It depends on the job and how long I estimate it will take me to do the correct way. So I charge them an initial fee just to go there and estimate the job which I'll explain how that pricing works. So last year I was charging $1400 a day minimum. So If I estimate the job will take me an hour minimum, that would be 1/8th of my $1400 daily charge. In other words $1400 / 8 =$175 hour. But I never tell them a per hour charge, it is a per job charge. So if I think the job will take me three hours I may charge them $175 per hour or $525.00. However this frees me up to add on shit factor. If I can only park at the bottom of the hill and have to transport a lot of tools or supplies up that hill by hand or cart or whatever I will charge them a shit factor. If I don't like something about the customer I may boost the price high enough I'm sure they'll back out of it. But if they don't, then I'll be sure to get at least half down payment before I'll even start. There is too much work out there for nice people to waste my time on sour people. So one last bit of advice for you guys who are new to this business. Think long and hard before being hired by other businesses like contractors. Why are they interested in hiring you, why can't they hire competent subs instead of a independent handyman ? It quite often is because they are Assholes who've worn out there welcome amongst the local tradesmen for one reason or another, usually unpaid employment.
I spent 37 years in the concrete flatwork business & as an owner my “ shit factor “ was what I called a “ nightmare charge “
Within 10 minutes I could tell that they were going to be a nightmare to work for…so once I figured out the “ I don’t want this job but if I get it I’m going to kill it “ price then added “ if you know so much about pouring concrete…why am I here “ ( NIGHTMARE CHARGE )
1 last piece of advice…if a homeowner/contractor wants anything extra NEVER move forward until you have put it in writing & signed by homeowner/contractor….CHANGE ORDER will guarantee
there’s no confusion when presenting final bill
About charging a price, with some clients it can be a push back and forth. Just the word 'handyman' for many clients implies ' cheap labor, whereas a reputable handyman can be 100% professional and has the skills to do a fine job. A serious handyman is a contractor. Some clients need to change mentality and pay what is justified and reasonable in an estimate.
Yep
100%. Handyman = cheap price.
How do you get more customers? Do you pay for leads? What do you think about Thumbtack?
We don't use thumbtack but we do have paid Facebook, Google and nextdoor ads. We also have an ad on the local radio
Is Facebook group no longer there? Links not working for me.
It's there, have you been in it before?
What is a good basic on what to pay a helper by hour or by the day what's a good pay for your help
I actually just made a video on this subject, check it out: th-cam.com/video/AnXzgz7JFvk/w-d-xo.html
I just watch it and it's a lot complex to what my business is I am a very small company with just me and I am looking for a helper but don't know should I pay him by the hour or by the day
Although I agree that “ supply and demand “ ultimately drives the pricing ( economics 101) …. I just can’t morally and/or ethically do it. I feel in my heart that it is exploitative.
Trust you heart and do what you feel is right
QuickBooks.... How did you learn it? Did your accountant help you or did you figure it out yourself. Any negative issues with it?
It works great! I originally learned about it from other business owners and then my accountant has helped me implement it!
This is going to sound harsh but if you don’t know what your operating & overhead costs are then you have no business being in business! This should be the first thing you do when considering starting a business…sadly many don’t understand this.
Yep that is definitely something you must figure out! Very important
Enjoyed your video I can speak from experience 20 years in the mining sector 35 employees heavy on the service side it almost put me in the grave expert knowledge help in certain areas is a must not an option
Tip #6. Take a hit of Sambuka whenever he says “ at the end of the day “
I'm trying to get a receipt for my handyman he's refusing to give me receipts for everything you have done
Are any jobs left that handymen can do legally though, because handymen can be arrested by the law for doing work that requires licensed/certified professionals.
Handyman laws do differ from state to state and in some places county to county. There is plenty of work for the handyman to do!
The state of California will only allow a handyman to perform jobs that material and labor combined must be $500 or lower. Otherwise you would be required to have a contractors license.
Yep, certain states have different laws for sure!
Commiefornia
$999.99 here in Arizona
A very hackable system.
Step one: leave California
Hey bubba how much….uhhhh 50 bucks….ok…..3 weeks later oh crap you’re not insured? Ya get what ya pay for😊
In CA we can only charge 500 a job.
As an unlicensed contractor in the state of California it is illegal to charge more than $500 per project including labor and materials
Can we break up the projects in increments like demo installation and hauling? Thank you for your reply. I'm just starting out.
Rule of thumb is 2 times material But if you can't for see the future communication is key. What looks to be one thing Can be another. Brace your clients and you are a hero when you go Below a cost .when it's below great if above you have let the client know you are not a magician for reality. They know this and so do you. The real thing is being honest
Yes definitely!! Have to be honest at all times! I appreciate your comment!
How do you have employees? Is it a GC license? I'm reading I can't have employees, I can't even have someone working with me, that it all has to be solo.
Journeymen in no trades
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Are you charging for estimates at all yet?
We give free phone estimates , in person consultations are $100 that is credited to the job
6.5 years and your pricing ideal is still way to complicated. All of this pricing structure can be tossed for an easier system. I'd share this with you if you want.
Always willing to learn!
I’m interested
What’s that
*Customer Perspective* : I want an estimate and final bill that mirrors the approach my mechanic takes. He's transparent in breaking out parts, shop supplies, recycling/ disposal fees, and labour ( hours * hourly rate ). The fact that 99% of house related contractors don't do this, and refuse to even estimate these things in some detail is a huge red flag in the industry. I totally disagree with your approach. My contractor breaks everything out. We both agree that an estimate is an estimate. Weather with impact things. That's reasonable and logical. Material prices may vary (I've had both discounts and extras - my contractor passes on the benefit, and adds a charge for the extras). If there are delays from subcontractors, that's on him. He's built that into his rate. When he does estimate callouts in the evening to clients, that's built into his rate, and for bigger jobs, he'll charge for an estimate. I get a bill that breaks everything out. He drives a new BMW and has a huge top of the line Mercedes panel van. He's not cheap. I don't begrudge him his profit - he works hard for it. He and his crew show up on time; wear all the right H&S gear; have an obviously organised site set up; those who moke do it in one designated area at the end of the site; they appear to have an allergy to dust as they use an industrial dust extraction vacuum on nearly every cut/ bore/ drill. They manage expectations, flag delays early, are courteous to the missus, and call back a couple of months, and then at 6 months to check that everything is as it should be ( testing hinges, floor squeaks, mitre gaps etc. ). Once you've seen a couple of cowboys tie their horses up in your front garden and gunter simple jobs, you'll happily pay a premium for a hassle free process, and a delivered product that does what was promised. I recommend him far and wide with the caveat that he's expensive, but worth it. I'm too poor to pay a cheap contractor
Remodeling GC here with a business for 20 years with revenues of about $600-750k/yr and several employees-
Of course we all are working hourly, whether you realize it or not. Every quote you write can be broken down to an estimated hourly rate. If the business is a service business, it all revolves around labor and the rate of that labor. There can be a large range to that rate.
About 1/3 of our work is time and material. Mostly the repair jobs and the “handyman lists”. There’s a lot of upside- no risk, no stress, guaranteed profit, no time spent quoting, add ons/ removals are easy. You won’t have a windfall profit, but you rarely do when you quote jobs anyway.
If I have 3 guys out on a job at $105/hr, I know I’ve got $12,600 per week in revenue, which lines up with our typical numbers anyway.
The only caveat- have a minimum labor charge. Mine is $300, mostly to keep the tiny jobs at bay. More expensive areas may be more.
Awesome! I appreciate your comment! Great words!
Yes but if you charge too much, your clients will just find someone who charge less. Plubmter for example charges $300 to fix drain clog. Well we no longer hire any plumbers because they charge too much.
Don't give a low price this time so you can set your self up to lose more money next time. Bid each project as it stands not In hope of the next one. Good luck guys.
Yes!💪💪
Great channel. New subscriber here.
Hey thanks! Glad to have you! I am glad this video was helpful for you!💯
How do you get around charging more than $500 in California without a Contractors License?
No one cares
@@user27278 Watch out for the stings. Useless people that have to justify their job.
@@joemonroe9456 in CA you can steal $1000 from a store but you can't charge over $500 for helping a neighbor, let it sink in
at the end of the day there is no getting around it unless you get a contractors license.
@@user27278 That's why they call it the land of fruits and nuts.
been in the handy man business 53 years . if your dealing with landlords who have multiple properties good luck with a fair wage a nd that's keeping it real .
That's very true! Thanks for your comment!
I almost NEVER work for landlords, investors or real estate people. Been screwed too many times.
From my experiences working in the Middle East, the more wealthy the client is, the more likely they will stiff you. Every contractor wants the future work, but the rich know they can easily stiff people at least once. They will plead for changes and upgrades and then complain about any additional fees. You want to get paid, so you play nice. They know the reason they're rich is they are able to extract wealth from the working class.
I have not had this experience in the USA
@@handymanjourney I also had a bad experience in NC with a devout Southern Baptist couple. They were guilt free about their poor opinion and treatment of "others".
That was in the '80's. I've since had other bad experiences with wealthy people, who never seem to have to pay for their extravagant meals. Many wealthy people in the USA feel no guilt stealing and grifting from everyone around them.
Good Video! Here is a comment for the Algo.
Thanks bro! I appreciate it!💪
Underpromise and over deliver includes throwing in an angle stop at cost, not upselling a $5 part.
It could include that if that's what you felt inclined to do
Maybe for the part itself, but there is no reason- unless the billing for the job is on the high side already- to include the labor for changing the angle stop.
A handyman shouldn't be touching angle stops, that is the plumbers job
@@coreyfranco7060 😏😂 I'm a handyman with deep plumbing skills. Changing an angle stop is not a deep plumbing skill. It's rarely more difficult than changing a wax ring under a toilet, but it's a different task and has its own timeframe.
@@primalartifice its disrespectful to the people that took the time to get a plumbing license and is illegal in most states. If you want to do plumbing then get a job as a plumbing apprentice and work your way up like everyone else...
"A quality product for a fair price"
- Red Forman
11:30 and 15:50 are the key take aways from this video for me.
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Charge what it’s worth if it’s done CORRECTLY
Yes definitely!!!
I like what your selling, just hate the way you poured that sack Crete
Hey, thanks for your comment! We use quickcrete and there's a few different ways that you can mix it!
All that is good and well but you missed the most important thing?? Do the job like a pro not a Handyman this will serve you best when people are happy, and people talk that turns into more work. Doing a hack job never pays LOL 🙂
Totally! Covered doing a great job! Handymen are pros and can do great work! Thanks for your comment!
@@handymanjourney Only a few are or think they are!! sorry to tell you LOL.
How do people pay you?
Typically with a check or credit card
I say you charge people that want a good quote higher so they go away
I have a hard time trusting any business that puts honest in the name
Sorry you have been hurt by that in the past! Appreciate you tuning in!
I actually haven't, just have heard some stories about multiple "honest" guys. I'm sure you do great work 😃
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I have lots of work just give me a deal
dont worry its easy
, I would do it myself but just dont have the time.. undermining you
All it needs is one coat.. 😂 no dont do it they wont be happy and it will be your name on the line.
yes
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You forgot geographic location your not going to make any money working at trailers parks USA .
Most definitely!
Having a handyman business myself for the past 10 years. I have a hard time believing you're making much of a profit, if any at all, being so heavy on the admin side and business cost with only 2 techs in the field. I think you're way to heavy on your cost to do business with how many techs you have. That's just my 2 cents but I hope you do well.
It is definitely more expensive with heavy on the admin side definitely.
@@handymanjourney good luck on you business venture. Hardest thing I've found running a handman business is finding good well rounded techs in this field willing to work for you. It's much more rewarding to work for yourself. With that said, be carefully on creating too much extra cost.
lol. he said not charging enough!!!
Yep that's a huge mistake handymen make!
How do you support 5 employees with $500 job cap?
You do small maintenance style jobs were no project is over $500 but you can do many small projects in one day
Starting to wonder why i bothered getting any licenses, i expect maybe 100/hr for electrical service work and handyman get that for replacing a mailbox...
@@coreyfranco7060 Its dog eat dog out there...........
@@jamesjoslin7586 id be trying to make friends with the tradesman, not trying to take food out of theres kids mouths lol
@@coreyfranco7060 Just sayin how it is. I’m a long time contractor and learned A LONG TIME AGO that whatever you quote someone, there’s ALWAYS someone who’s uninsured, un licensed and working for cash nippin at your heels ! A lot of cops, fireman and teachers “ in busness too” !
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