Working Hourly Vs Estimating | Customers Were Shocked At My Bill | THE HANDYMAN BUSINESS | 

DIY Addition On A Budget ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-6Xjox43DpcE.html

As a handyman, I do both, hourly and estimates. It's at the point now, after 6 years, rarely do my customers ask for estimates. Most of my regular customers are property managers. I give my property managers a lower equivalent hourly price because they consistently give me work all year long. Every year I get busier and busier, so every year I raise my rates to try to slow down the work so I can keep up. When I started doing handyman work I was charging $40 an hour... which is less than half of what I charge now, but it got me in the door and built a customer base. Once you get that, and experience, you can go much higher. With estimates I'm usually about double what I think the labor will be and jobs I really don't want to do I'll estimate triple or quadruple and yet for some reason they frequently approve the estimates.

I charge by the job. The customer will always look over your shoulder expecting you to work faster if you charge by the hour. The customer is not paying me for the 5 minutes it takes me to do some jobs, he is paying me for the 30 years of experience that allows me to complete the job in 5 minutes.

Lawyers get paid by the hour. Anybody ever met an efficient, affordable lawyer? I rest my case.

I gotta hammer it into to guys to do a good job, go above and beyond and you’ll never run out of work. And don’t rip customers off!

I always cushion estimates. A half hr job can turn into hrs very easy. Part runs, getting into someone else's poor repairs and so on.

We estimate a job by how many hours it will take us and add a little extra depending on the size of the job . Been in business by word of mouth for 15 years. Be honest and work hard

I always charge by the job. In the mind of the customer “work by the hour” are folks that work at McDonalds. “Work by estimate and contract” are craftsmen with professional skills. Estimates allow you to overcome sticker shock up front, and once a price is accepted by your customer, the money issue takes a back seat to getting the job done. Communicate clearly with your customers. Be on time. Do all the work and keep them involved in what you’re doing to the extent that keeps them happy with your skills and expertise. I always add a cushion of about 10% to my bids. If all goes well and I like the customer and would like to earn additional work from them I take the 10% or part of it off at the end of the job. Customers like paying a little less than bid. If they are jerks or if there were hidden costs that were minor the 10% covers the small stuff or my pain and suffering. I’ve been in business making cabinets and built ins since 1967. You are spot on in your advise! Rock on brother.

This is the first time I have ever watched one of your videos and I love it. I find you are right on my wavelength. The clients rarely recognize the time it can take to pick up materials and get the job organized. After 30+ years I have always done estimates. I stand by them, if something nasty shows up I stop, show the client and quote the fix. If something shows up that I think I should have caught in my estimate originally I don't charge for it, the quote is in and honor it. After 30+ years I don't miss much but it does happen :) I have never had to advertise. I have no problems doing -little- things for free or noticing something that needs a quick fix, showing the client and fixing it for them, it's my advertising budget... Word of mouth is king. The last 10% of the job is 90% of the job. I'm rambling now but your video touched something in me, thank you.

I was renting a house and wound up buying it a few years down the road. When the home inspection came in, the owners were shocked to find out that most of the stuff they paid handymen to do never actually got done.

From a young single father who's been dreaming of working for myself since I started in the trades as a teen, you've been a phenomenal source of information and inspiration. I'm not quite where I want to be, but I'm a hell of a lot closer with your videos and words! I appreciate all the work you put into these videos and channels, bravo to you, sir!

As an electrical contractor, we provide a “NTE” estimate (not to exceed) for most service and maintenance based requests. Its not a hard estimate per say, but it does cover the scope of work defined and allows flexibility to cover some of the unforeseen situations and modifications to the job approach that will inevitably arise. If we complete under the NTE provided, we’re big heros and the customer is left confident with our electrical work. If we approach the NTE due to further complications we have the ability to easily renegotiate as we have already gone above & beyond, and the customer has been versed as weve progressed. Its the best of both worlds imo, as it leaves me with the flexibility i need to not be hampered with costs due to the other obstacles to overcome owning a business. -Delmarva Peninsula

As a handyman myself, I usually do bids. Another way I do it is charge x amount for a ceiling fan install, x amount for a kitchen faucet install, x amount for a door install, etc.

The Economy Triangle: Lowest Price - Highest Quality - Fastest Completion. You can only ever get two of those at the same time.

Thorough explanation of both questions and great information all around. Many thanks! I have found that my competitive advantage in a bigger metro area is this: show up on time; do what you say you're going to do; be honest and fair. Now, I just need to get the estimating dialed in! Thanks Handyman. You're helping the world be more handy. Cheers! Man, that tug of hooch you took at the end even made me quiver a bit.

Doubled edged sword for sure . It’s always a gut wrenching feeling , going back through a quote and finding out all said and done you broke Even . Live and learn

I was working only on foreclosures for years. During the pandemic there has been a mortgage forbearance, so I am now also a handy man. Learned, always get a signed estimate. People love to negotiate, even when a perfect job is complete. When you can, get some dough up- front. Love the handyman's approach, we are a very valuable group of workers. Just because we work fast, clean and precise doesn't mean it's easy. Keep billin'.

I’m a plumber in Texas and started my plumbing company weeks before COVID was a reality here You’re absolutely right about PM companies I have three I do work for and two want the cheapest fastest regardless of options or lack of warranty, doing it their cheap way and one actually wants what’s best for the property and willing to pay for it.

Installed the gate latch you recommended, super easy and seems well built. Love the videos handyman, I'm just a diy'er that does everything myself, I learn a lot from you and love the channel.

I just started to watch your videos. I have my handyman business in Fl for about 1yrs, moved down from Ma. A lot of what you are saying I have been doing. You have great advice. Keep it up!!!

We do tree and snow work and have 4-5 property management co’s as repeat busy customers. You’re right low expectations, endless lists, but steady fair work. We always do good work.

Up here in Ontario Canada, I use hourly, Estimates and quotes. Small jobs (less than a day) I charge $50.00 plus 13% tax plus materials of course. With estimates I always explain that the main dif between estimates and quotes is that a quote I will add at least 40% to MY estimate and do whatever is required within that QUOTE. An estimate is exactly that...and estimate, maybe less, maybe more, and I add 10 to 25% to materials I buy depending on how heavy and awkward the material is to handle given property conditions. People love me for doing it this way as it gives them options.

When I started out I charged mostly hourly...was a pain in the ass. Customers would follow me around rushing me with everything, complaining about bills, putting me on a ton of separate jobs, trying to loan me out to other subcontractors. My life got so much easier when i switched to only estimates. Just my 2 cents, thanks handyman

I charge hourly- from replacing outlets, to painting trim, to tile, to repairs. I make sure to form a good relationship with clients, and I almost always get callbacks. Even if I replace an outlet or switch for 40 bucks, it is a great deal for them, and ends up balancing itself out when they call me back to do something like paint, or drywall patch. They are also way more inclined to give my phone number out. Plus, it keeps my work sharp. I'm always thinking of how to accomplish things quickly because I know I'm on my clients dime.

Often when I 'guesstimate' a job, the homeowner is so pleased that they start to add extra items halfway into the job. By the time I'm finished a two-day job may have grown to over a week, plus materials. Even when I tell them the bill is growing they never quite seem to get it until the bill is in their hand.

I can see why you’re successful. Good work ethics go a long way. Becoming a rare trait.

Potential customers always ask me if I charge by the hour or by the job. They always seem relieved when I tell them by the job. I give them a price and I stick with it. If the job takes longer than expected, that’s on me, price doesn’t go up. I learn that I may need to charge more the next time I do something similar and move on.... customer will see that you worked hard on their project, maybe losing money, but they’ll give you a little extra for your effort and call you again. That’s my experience. Love my growing number of rental property gigs! Easy work, and good money! 👍

"He was pimping me out!" Lol, what a classic line.

Business owner since 2002, I learned early to invoice at project rates so customer's mindset is "buying the results". When I invoiced as time/materials the customer's mindset was always comparing their hour pay against your hourly business rate. Don't nickel dime your craft and talent and time for those that don't value it. Add 15% to project estimate for unproductive labor time on ordering supplies, site access and setup, consultations, incidentals, delays, etc.

Great video! I've ended up with a mix of hourly and by the job customers. For me I've found clients that want to pay hourly generally don't want to get ripped off, but realize most of the time the average hourly job isn't far from what I charge by the job. They just feel better about it.

Thank you so much for this video. Young finish carpenter trying to get up and running. Thank you for the help seriously. Subscribed

Your videos are very valuable for people starting the handy man business. I just started my business and it has been great. Work is plentiful. I do a lot of things the same way you do. It just makes sense.

Congrats on the recharged beer fridge! The most important shop tool in the world!

Who the hell clicks the “thumbs down” on this stuff... down right un-Murican. That said... spot on as usual. There is no get rich quick format for any business ( at least not for 99% of businesses). Do the work, make the connections, and make sure you do the work well. I moved from hourly to estimates about three years ago. Do I occasionally make a mistake on how long something will take, yep, did that today actually. But I still took the time to get the job done right and the made an adjustment on the invoice that was fair for both the customer and me. They were happy to pay it because they did come out a couple of times to see what was going on and me taking the time to get the details right. Rental properties are a great source of income and profit, the property owner wants the complainants to stop and the renters just don’t want to see or hear whatever the issue is anymore. If you can solve both those issues you can make great money, everyone’s happy.

Plumber here, dads owned the business for 40+ yrs and he only does estimates. Sometimes you can get screwed because you open a can of worms BUT since they got the deal and will call us back again we can just add a little extra on the second job and make up for it. But we are always fair as possible maybe too fair for most cases. Luckily we’ve never had to advertise or go looking for work it’s just been word of mouth and we do pretty good. Be good to the people and they will treat you just as good and let others know about you

This Videos are a light to my life ! Very educational and the guy behind this Videos is an example to success in life !

An honest man. Not very many doing his type of work on an honest basis. I have been ripped off a few times because of my ignorance in these matters. Wish i would have seen your videos sooner.

My uncle has been doing general residential construction for over 35 years and has NEVER advertised. No shirts, hats, banners, not even business cards NOTHING. Stricly word of mouth. He has hammered out a pretty respectable living doing so

Wow nailed it in all areas! Thanks I was wondering myself in the beginning how to charge and as you said with experience I've figured it out. Took me about 5 months in Handyman business to really get it down packed. It's really only going to get better everything seems to be getting better. there are very few customers that I reject but I will if it's going to be a problem and I see it ahead of time.

You helped me transition away from an hourly rate system that is common here in the finger lakes region of NY. Thanks!

Love the target stands in the background, this guys a straight Chad.

Well done on the target stands. Good to know you’re a shooter. Gained another sub.

I just noticed the metal targets in the background, very nice.

Keep on rockin the KUIU! Love the "metal drywall supports".

You sir are not only informative you are also fun to watch thank you for teaching in a way that's enjoyable

From an up and coming handyman with 10+ years DIY experience, this is really good advice. I know how to use my hands but the head part is harder!

Thanks for the advice and shared wisdom. Good info to help keep food on the table for the family. God bless

Love your videos man… always learning from them.

good vid bro, totally relate to everything u said..especially, gotta take a swig now and then..keep on keeping on

I run my own Handyman Services business. I do estimates with all my customers. Most of my clients are elderly so they are set on a budget monthly. I meet with them and talk to them feel them out. Definetly have multiple clients that call back. Love what I do.

I agree with you 100% on this on this for most of my work are from return work with happy clients knowing the exact cost & time..

Good commentary. I only do estimates, also. The only way to go. One thing to keep in mind is ALWAYS do change orders for any changes + or - in cost, to avoid surprises or miscommunications. Sometimes people say, "I trust you" when I present a change order & I reply, "It's just to keep us on the same page, after all the options we've discussed".

I attempted my first rental turn recently. Before seeing the property in person I gave myself a 2 day window... Long story short, I will NEVER AGAIN give an estimate before inspection. I've learned my lesson.

Dude you rock! I like talking to guys who tell it like it is like it or not! The name of the game is HONESTY! NEVER SAY DIE BRO! TAKE CARE!

You are really convincing me that I need to peruse this full time. I’ve done the odd side job for friends and have the common sense to do pretty much any job but the legal side confuses the hell out me.

I do by the job, not hourly. If it takes to long it's my problem. But even that's a double edged sword

I started working for a property management company and you're right, complete good work and you become their work horse and when people see the work you do you get your private clients also. He's 100% right about property management. I love doing it cause you're not hand cuffed to the company and it's steady work and an opportunity to have your work seen by others in the neighborhood.

Ok, as a remodel/handyman working outside and inside the Houston area I totally agree with you that there are plenty of people that will do work for basically nothing and the work shows it. It takes years to build a true clientel in this area but once you do, the customer will not even get other bids. Your right, it's word of mouth. Its based upon trust that what you tell them is fact and knowing the job they will get. They will pay your price.

I charge $75 for a service call. Even if it’s 10 minutes which is often. Anything I can’t do in an hour gets an estimate.

Good stuff. Just started my first two jobs. Small bathroom tile and vanity and fixtures. I gave them a number but could use some info on pricing jobs.

My 2 cents: I charge hourly unless it's a "big" job (full stair, basement, bath etc.) I give a quote on big jobs, an estimate (of time needed) on smaller ones. I do everything possible to meet my estimate number including; billing for less hours than worked, no bill sent for punch trips, eating smaller material costs. My clients (obviously) agree to the hourly price and I make sure they feel like they got a good deal or a fair price for a superior product. I might charge $450 for a door but do it in 3 hours and bill for $350....while making sure to sell the next job to the client! Professionalism, punctuality and respect....a handyman/carpenter can charge $100+/hr easily.

I'll do hourly, when They give me plethora of jobs, and don't have the materials, and I need to go shopping. Today, replace 22 hinges, replace a bathroom faucet, replace a storm door closer, install a keypad door knob, recaulk a shower stall. Worked 5 hours, billed for 8. I have a four minimum, and if I go over that it's 8. I can't say I haven't had heated debates with clients, but I'm in high demand now.

Use the motion light switches anywhere you walk in or out with your hands full. Works great

Great video bud, living through it

"I don't have to please anyone, I text them and they Venmo me" I love it lol!!!

GREAT VIDEO! I've been in the trades for over 35 years, NEVER charged hourly. I work very quickly, would lose money at an hourly rate. As a side note, I don't pay subs hourly either.

I’m currently in college, but when I did electrical for my dad, we charged by estimations. But when we worked under a contractor, we charged by hour. This is in upstate New York.

The key often is Educating your customers to the cost of the project. Always ask if they have a Budget in mind. Thank you for all your work!

Never charge by the hour. You end up getting penalized for efficiency

Great video. The few side jobs I've done I estimate at 1.5x material cost for labor in my area. As far as what I've done, the time involved, and customer satisfaction it has been great. I wish I didn't work full time because I have some good people that could be the start of a referral network. But, like anything, it will take time to cultivate. Thanks for your great videos.

If you have to do T&M jobs, try to give your customer a quote anyway that is padded in case things don't go smoothly. Give yourself a little extra time for that unexpected trip to the store etc. Don't forget clean up time. If they agree to it, then when everything does go smoothly you can come in on-time and under-budget and look like a rock star. Giving someone a bill for even slightly less than your quote is always a good way to end a transaction. Leaving even $10 in your customer's pocket broadcasts your honesty to them. Hope that helps.

Took a shot of some $100 Pecan whiskey. Hope that helps numb the pain!! Anyhow, I bid all of my work by the job, not by the hour. That being said, I'm a small, one person contractor and I don't always have a full week's worth of work lined up so I sub myself out to a GC who is also local. For him I bill by the hour. I know it's not ideal, but he's a friend and it helps us both.....he gets a good worker for a day or two and I make $40 an hour for my time. I know this is a totally different situation from what most people would discuss as far as billing goes, but I find that making friends with your local "competitors" is actually beneficial for all involved. I have to be honest with my customers if a job is more than I can handle, and it's good to have some references in the pocket so I can keep that customer in the future.

Handyman wearing a Rolex HULK lol love it!!!

Heard that saying the " Boot Makers son ' that's your workshop :) Love your channel

We will always stay with you my boy.

They’re out of 2 gang and 3 gang boxes at both Lowe’s and Home Depot in ID!! It’s been well over a month. It started with 2 and 3 gang boxes for old work, with the flaps. It’s f’n weird! It’s similar to the toilet paper outage! A couple of weeks ago I found 2- 2 gang boxes for old work right there on the shelf at Home Depot...sitting all by their lonesome...I snatched them up. Nearest I can figure is they must’ve been a return.

Flat rate is the best way. Figure out what each task takes you. Multiply by your labor unit Add materials + 20% mark up for warranty . This is a sure fire way to make money.

15:00 love doing the tenants... You're so right about landlord lolllll and the tenant

I find estimates to be the ideal solution. The mobility work I do has an average book rate for certain jobs and I find that with my experience and systems set in place I can do those jobs in around half the time that the dealer book rate suggests. If I line out the hourly rate there is always a discussion about why it cost the same through me as it would have through the local dealer even though I only needed half the time. I tend to respond with the old story about the naval mechanic that billed for knowing where to tap with the hammer.

I work at a contract research engineering company and have had to learn how to price projects. There were two methods taught: Bottom-Up and Top-down. Bottom-Up: Create a work breakdown structure (List of tasks to be done) and estimate the labor and materials for each task. These prices should be somewhere between the best case and worst case in terms of time. Then add some contingency (experience will govern the correct amount, but start with 10%-30%). Now add another 20% to it because human are bad at estimating tasks (forgetful and optimistic). This should get you a stout number which aught to produce positive net income. Experience will allow you to back off on the percentages. Top-Down: Start with the market price for the job, take out the materials cost and you get the rest. This is great for a gut-check on the Bottom-Up method to make sure you are in the right ballpark. You can mix and match as you desire. Such as starting with the market value, doing the work breakdown structure, then adjusting your labor rate/hours to fit the market value. Scope: At our company, if the client wants a discount, we only offer it through scope reductions. We do not reduce our labor rate. If the client wants additional work to be done, then we do another "firm fixed price" bid for the additional scope. Do not let the client do small scope increases for free because you are setting the "That's the way its always been done" which is that they can ask for scope increases for free. More work outside the scope, then more money to pay for it. This is the way we do it for research work which is always bespoke, prone to breakdown, and rarely done before. I have a feeling this would be applicable in the home repair industry since you never know what is behind the drywall or under the tub (thanks termites for making the studs sponges...).

ooooh FOCK! LMAO, you could start up a handyman comedy channel!

Having done renovation work on the side for the past 40 years. ..I agree that its best to bid a job by thr overall cost versus hourly... I find that if I find ways to work more efficiently...I benefit but in some cases there are setbacks with unknown things you can't plan on..I prefer to bid a job and if it takes me longer..its on me versus having someone watching you over your back...

Regardless of the type of work, someone will get "short changed" when it's being charged by the hour.

I 100% agree with you my father has taught me a lot especially patience with a client and doing a job, I swear for the past 20 years of working my father has not once advertised but instead got work through recommendations only

My first client after registering my business and getting started, was a sober living property company who also had a rehab for drug addicts. And that paid my bills easily for 6 months. Have since parted ways. But then I got lucky and a management company saw my Facebook page and they called me to do some apartment maintenance. And even on my worst day I was easily able to do anything the other guys can do and more. But then the best lead or job I have gotten, was off a tinder date. Where the girl was a manager at a big HOA management company. and even though we didn't work out, she sent bids my way immediately and also gave me the advice on whether they were too high or too low and what needed a little help. And there's a couple good paying gigs coming out of that for sure. The biggest obstacle I have found with property maintenance or building maintenance, is budgeting my time so that I can get the other projects done that are paying me more. And also making sure that I am getting my worth out of that company. Often starting to clock second I leave the last job and start preparing for whatever it is I'm doing at the property. And making sure I keep a good surplus of parts so that I can get the repairs done, include the parts in the invoice, and ensure that I'm making the money that I need to make out of those jobs

You're never paying for the task, you're paying for the task completer's expertise.

You've got great videos man. Kudos

I do only residential. Be it works well got me 6 months into the business. Love your channel. Thanks

Love the muchkin voice when sharing customer comments.

Just found you awesome videos I’m a full time contractor moving to Tn looking to start a handyman business myself

I am not giving away all of my secrets for free, but these are the general ideas. I am in a very different field but could charge customers by the job or hourly. I charge by the job with a specified daily rate if we agree that additional time is necessary. My customers say I am expensive and worth the high price. That is the image that I intended to create. My customers are happy and so am I.

Excellent advice! *"Handyman professor",* that should be your title!

Excellent advice as usual Handyman! 👍

Always done estimating. Even at the beginning when I was paying to do the work. That’s the only way to learn unless you have a friend to tell you what to do with your numbers. I believe the customer doesn’t pay for the job, they pay for the experience it takes to get the job done right and the personal experience they get with the contractor.

Love the videos mate! Gidday from Sydney, Australia🇦🇺

Thanks for the awesome content stay safe and take care

Quality always brings more customers, always!

I give an estimate of time that the project is going to take. Then I tell the client that I can estimate by job or hourly. Hourly normally comes out cheaper, but you have to gamble a little bit on the hourly choice. Remodel work is so tough to know exactly what you are getting yourself into. 14 years going strong. Got my hooks in every contractor I've worked for.

I landed a client from a referral, that is buying up homes in my area for rental property. You are right on the money with the property manager statement. I still try to work with the tenants a bit also. It is their home space you are coming into. I do like the rentals that are unoccupied...majes the job a whole lot easier. Love your videos, like the tips of things you give.

The only hourly work I do is for a few family members or very close friends when doing remodeling type work. The caveat is that I do the work in between the other work I have. I use this work to 'fill in' the few times that I have open. I definitely make sure they know what the general end cost will be so they don't have that sticker shock. Regular customers always get estimate.