Handyman work is lots of small jobs, and small jobs lose money fast if the drive, setup and supply runs aren't in the price. This guide covers the two common ways to price, how to set a minimum, and how to handle materials.
The short version. Know your real hourly cost, set a minimum charge, and price materials with a markup. Use flat rates for jobs you do often and hourly for jobs you can't size up.
1. Know your hourly cost
Before you pick a rate, figure out what an hour actually costs you: your pay, payroll taxes and insurance if you have employees, the truck, tools, phone, software and advertising. Divide your yearly overhead by the hours you actually bill, not the hours you work. Drive time and estimates usually aren't billable.
The free labor rates by state tool shows typical wages and what to bill per hour after burden, overhead and profit.
2. Hourly or flat rate?
| Hourly | Flat rate | |
|---|---|---|
| How it works | Your rate × hours worked, plus materials | One price for the job, set up front |
| Customer sees | An open-ended bill | A clear number before you start |
| You keep | Pay for every hour, even if the job runs long | The upside when you're fast, the risk when it runs long |
| Best for | Repairs with unknowns, "while you're here" lists | Jobs you've done many times |
Many handymen use both: flat rates for common tasks (mount a TV, hang a door, swap a faucet) and hourly for everything else.
3. Set a minimum charge
A 20-minute job still takes the drive, the setup and the cleanup. A minimum charge, often equal to one or two hours, makes small calls worth taking. Some handymen call it a trip charge and credit it toward the job.
4. Price materials
- Buy the materials and add a markup to cover the supply run, returns and the risk of the wrong part.
- Or have the customer buy them, and say in writing that you aren't responsible for the parts.
- Keep receipts. Materials should show up in the job's costs, so you know whether the job made money.
Example (illustrative): replacing a faucet at a flat rate.
| Line | How to figure it |
|---|---|
| Labor | Your typical hours for this job × your billing rate |
| Faucet and supply lines | Your cost plus your materials markup |
| Haul-away of the old faucet | Small flat fee or included |
| Minimum check | Is the total at least your minimum charge? |
5. Know when you need a license
Many states and cities limit what handymen can do without a contractor license, often by job size or by trade. Electrical, plumbing, gas and HVAC work usually needs a licensed pro. See the Licensing Guide to find your state's rules.
Tip: Keep a price list of your common flat-rate jobs. Quotes get faster, prices stay consistent, and you'll see which jobs actually pay.
See also: Trades HQ for handymen.