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Handyman Prices: Hourly vs. Flat Rate

  
  
  

handyman moneyThe very first question a customer asks is “How much do you charge for handyman services?”. I’ve done both hourly and flat rate and I can tell you the least stressful method for both customer and handyman is flat rate. As a customer, don’t you want to know how much the product or service will cost before you agree to buy it? Of course! If I go to McDonalds and order a Big Mac, I don’t want a different price based on which employee is actually flipping the burgers.

If a handyman tells the customer they charge by the hour, take a guess as to what will be the next question the customer will ask? That’s right, “how long will the job take?”. So, even though the technician gave the customer an hourly price, they have calculated the hourly rate and how long the job will take. In effect, the technician has given them a flat rate and will be on the losing end of it. The technician will lose because if the job only takes 2 hours when he told them 3 hours, they will pay you only for the 2 hours, which is absolutely fair. If the job takes 4 hours, the customer will say that the technician told them it would only take 3 hours and pay based on that. True, you can draw up all kinds of legal documents saying that all kinds of unexpected things can go wrong, and you can force payment. However, don’t expect to ever see that customer again.

I find it’s best to give a customer a fair price for the job, and thoroughly explain what you are going to do and why, and what the possible pitfalls could be. If there is any question on the job, give the customer a price range, so at least they know what to expect. It all boils down to good communication.

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Comments

I have been reading and collecting your tips for a while now. This one is of particular interest as I have some work needing to be done at my home. Charging a flat rate does make more sense to me. Thanks!
Posted @ Monday, December 06, 2010 10:00 AM by Carol Metzler
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