Can you believe that a handyman can make $100 an hour? In fact, in this tip you are not even capped at $100 an hour. You can earn more than that with a little creativity. How much are you charging for your handyman service? Are you ready to take it to the next level and start having fun with your handyman business? Read on.
How to make $100 an hour as a handyman
I remember searching the internet not too long ago and came across an article talking about making $15 an hour as a handyman. It actually made me laugh and wonder who wants to become a handyman to make only $15 an hour? That article must have been seriously outdated. How could a handyman even survive off those kinds of wages and still put food on the table, buy tools, pay for maintenance of their work vehicle, insurance, etc. I wouldn’t even try it.
The good thing is I’m not going to talk about making $15 an hour anymore. I’m going to show you how you can make $100 or more per hour in the handyman business and start doing it tomorrow. Dive in with me as I explore some of the hidden jewels in the handyman business.
Making $100 or more per hour in the handyman business sounds like it could be a tall order, but like anything in life, if done with a little creativity can become a reality and you can start doing it tomorrow. Of course you would never tell your customer that you charge $100 per hour. After they stopped laughing they would kindly ask you to leave their house and they would call the next handyman right away. You’re going to have to package this hourly rate in a form that disguises the fact that you are actually making $100 per hour.
Sneaky? No. Smart? Yes.
Start with the trip charge. I will probably need to write an article about the trip charge alone and if you are not charging a trip charge or service call then you are seriously under performing as a handyman and cutting your profits extremely short. If you are, however, then good for you. Lets suppose you charge a $40 trip charge (I do) and have an hourly rate of $47 an hour (I do). You get a call to replace a faucet in a kitchen that you know is going to take an hour or less to complete and you are going to have to bill the customer for materials as well as labor. The materials (faucet) for this job cost you $125 and if you are running a truly profitable handyman business then you better be marking up your materials 15-25%.
The total bill for the job comes out to $230.75 in which $87 is for the labor and $143.75 is for the materials which has a built in profit of $18.75 in that. Add the $87 labor charge to the materials profit of $18.75 and you get $105.75 for an hour of work. Not bad eh?
Can a handyman make over $200 per hour?
Lets take it a step further. Lets say you can complete this job in 30 minutes time. Does that mean that we have to cut the hourly rate charge in half because you only worked half of an hour? Absolutely not. Set a minimum charge for going out to a house (I do). In this example the minimum charge would be $87 for labor which includes the trip charge. Set the minimum charge for one hour of billing (even if the job can be completed in less time) plus your trip charge. So if the job can be completed in 30 minutes that then equates to $105.75 for 30 minutes worth of work. Does that mean that you are now making $211.50 an hour? Sure why not. Maybe the title of this article should have been “How to make 211.50 an hour as a handyman”. If you do 3 of these jobs a day and they only end up taking 30 minutes to complete then technically you just made $317.25 for only an hour and a half of work. That’s a chunk of change for such a short time.
This example assumed that you were using the hourly rate method of charging customers. I prefer to use the flat rate approach because there are larger profits to be made and you never have to tell customers how much you charge per hour. All you have to do is look at a job and give a flat rate. It can be perfectly reasonable to charge $100 or more for a job that you believe will take about an hour to complete. Get it done in 30 minutes and you just increased your hourly rate.
TOP SECRET TIP: Charge flat rate based on the time it would normally take to complete the job with your required hourly rate then work hard to complete it in half the time to double your hourly rate.
There are so many different scenarios where you can increase your hourly rate. The above examples are for someone running a handyman business by themselves with no employees or subcontractors. As you can see, even by keeping it simple with a one man handyman business you can really earn rates that anyone in any business can respect.