A pricing mistake that ALL handymen make
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- čas přidán 19. 11. 2018
- Handyman pricing mistakes are way too common. Learn more about handyman pricing at handymanstartup.com.
You see, we all have certain beliefs about how the world works. Some of them are more accurate than others. However, I've found that most people's beliefs about how much they should charge for their services are way off base.
When it comes to pricing your services as a pro handyman there are all kinds of psychological baggage that is almost guaranteed to make you undercharge.
So, in this video, I'm going to talk about why underbidding your competitors is a dumb strategy that will only lead to you making less money than you would have otherwise. While you may think having the lowest prices is a good marketing strategy and will help you attract more customers, it can actually have the opposite effect. The high-paying customers will be repelled and the low-balling, tire-kicking, waste-your-precious-time-customers will be who you'll be stuck working for.
If you're starting a handyman business, or any service type business, then I highly recommend you watch this video and give this topic some serious thought.
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My website on how to start a handyman business: www.handymanstartup.com
Handyman Startup on Twitter: / handymanstartup - Jak na to + styl
Thanks Dan, I just started my handyman business (so not everyone I know is aware of my new venture) and I ran into a buddy of mine. Doing the quick catch up thing and said that I have my own handyman business now. He immediately asked what I would charge him to install a new garbage disposal. We used to be neighbors and would loan each other tools for our respective home projects. I fired back a quote that I would give to anyone (read no friends and family discount) and he was like I'll call you Monday. He may not, but it is important to not make exceptions just to get some work. I know he is capable of doing this project himself, and I also know he has 4 kids 2 of which are twin toddlers. So hiring me is more about ticking that thing off the list so he can do the other million things that need to be done. I share this anecdote to remind all of us that our service is definitely more than just the price we charge, it's about the time we free up for our clients as well. Thanks again big D 😉
I am great video but excuse me have you heard about FUCK OFF with your goddamn handyman easy 123 bullshit!!! And this comment is not for the video maker this comment is for all the retarded comments
Ive notice if you try to underbid and be the cheapest guy you end up with the worst customers. The people that have more money to spend are easy to work with.
Agreed
Dakota Burgener yes! Exactly! Now if I could make my OCD perfectionist husband, (who ironically enough just finished a big interior job, and the homeowner refuses to pay anymore than the approximately $500 she paid mid-job because she feels like that’s all the work is worth, despite the estimate she agreed to!! And my husband and I replaced her ceiling, popcorned it, painted it, cut out all water damage and replaced the damaged Sheetrock on the walls. Lots of water/hurricane damage. Black mold, moderate water damage throughout, all floors had to be replaced, large sections of wall replaced, 5 rooms painted from ceiling to floor, damaged created by previous tenants, etc... I mean it goes on and on and on. We ended up using an entire 5 lb bucket of Sheetrock mud if that tells you how bad the wall were..🤬🤬...I apologize. I’ve gone left and taken off on a tangent) to understand that we need customers who are willing to pay for the quality of his work. That low balling estimates brings in unpleasant customers who expect top work for nearly free....I mean....we went into debt on that job! 🤬 I’m going left again. Lord help me. I’m about to cuss a little bit. I’d better stop typing.
whatchoo mean by worst customers? racist
And they will usually find something wrong or extra to do after the fact ;)
Cheers for the Video! Forgive me for chiming in, I would love your opinion. Have you considered - Hanmila Glorious Doshmaker (do a google search)? It is a good one off guide for discovering the trick to have a successful handyman business without the hard work. Ive heard some awesome things about it and my mate after many years got amazing results with it.
Perfect timing!!! I’m coming back from semi-retirement now and will be doing small handyman type work
Your content and confidence are very inspiring sir. Thank you.
Great point. Being known as the cheap option isn't exactly the best way to brand your business. I would imagine it would be difficult to change that when you start off with that strategy. Plus, low prices always equate to substandard service....corners have to be cut somewhere. Usually, at the expense of the customer.
Thank you for your videos. It’s a big help.
Absolutely...this strategy had been ruining business for some time now.......The cheapest price is not better.... Pricing themselves out of business....I need a consumer base who is not looking for the cheapest price....Let's keep our value up"......Great content...People should watch..
Excellent video, thank you...
Great info my friend. Very true. Plus if u work long enough u definitely don't want to work for anything less than what you are worth.
Excellent Video! Forgive me for butting in, I am interested in your thoughts. Have you thought about - Rozardner Successful Handyman Reality (probably on Google)? It is an awesome one off guide for how to start a handyman business without the headache. Ive heard some super things about it and my m8 at very last got amazing success with it.
I like your content, keep up the helpful videos!
Thanks Tom!
@@StayHandy hate to point this out but if he is one of your smartest friends, you must have some very dumb friends.
Yup. Buy cheap, get cheap. Avoid cheap customers like the plague.
Steven Mccallan lol! Right! They are a NIGHTMARE!
Completely agree with this. I can view from both sides of the coin; I've run a handyman business here in the UK for nine years and before that I was the property manager working for a not for profit.
As the manager of course cost of a contractor was important, particularly given my employer, but at least as important was quality, competence and reliability. It was rare I awarded a job to the lowest bidder and in the log term this works best for NFP.
Now with the boot on the other foot I always go in with a price/hourly rate I know to be mid range or higher. You get a much better and easier to work with client most of the time. You have to match the expectation mind you but if you do you'll get plenty of repeat custom and even better those valuable referrals.
Property managers as clients is different than the usual residential client. The former indeed will look for quality and work ethic, the latter will search for reasonable pricing for them which is usually too low for us.
Do you recommend pric I no jobs by the hour or by the job?
Wise advice though I do give my return customers a small discount on labor. Reputation is EVERY THING is this business.
I hear this theory a lot and wish it were the case but it is not the reality. As a handyman, I have found that this theory applies mostly towards doing remodels and not to individual handyman jobs. Most customers indeed look for low pricing. They just want the drywall or fence repaired and expect it will be done satisfactorily. Real low pricing may deter some but reasonably low pricing is what they hope for. And high pricing isn't an indicator of work ethic and quality...there are many high priced workers who are hacks and like to gouge new customers. Higher pricing may be acceptable to returning customers who already know your work...but attracting new customers with high pricing is a crap shoot. So you really just have to test the waters and set your pricing based on what you need, what the market rate appears to be, and what the customer will pay
How much marketing have you for outside of paying for leads?
@@StayHandy I've never paid for a lead. My website, work van signs, and word if mouth is all I've needed.
I just underbid a countertop job 1/3 less than I could have charged so if you bid them higher you can take a hit and not even sweet it. I just started a company in mid Michigan I still have my 9 to5 and I just do remodeling on the weekends and if I have a big job I take some time off work. I bid them like I don't want them and I'm getting every bid so far.
That’s the best place to be, where you don’t NEED the work. It gives you a lot of control with your pricing.
I'm using your channel for learning English. Good job brother.
But what if everyone is being cheap..and you are broke. If I wait for good paying customer s then how do I eat and make money meanwhile. I just can't find the right customers with money. They all want %75 off. Help
@@Orangedome move close to rich people.
Hey Dan, thanks for this great info. I visited your website, awesome stuff and the webpage is very professional. I'm eager to tap into the "instant access" guides that you have for launching a business, getting more customers and setting the pricing. The link is not working though. Any idea how I can get access to those things? Really appreciate what you do man! Thanks again.
Saying that he didn’t reply tells me he doesn’t give a fuck
Thank you for showing this video, i have just sent your link to my friend that runs a handyman business and he is currently watching it, hopefully this videowill make him think twice( Rise your price Natt Lol)
Great video, definitely will be rising my prices
Have you registered for my pricing course yet? I think you'll find it extremely helpful.
I have set my own pricing and i dont personally think i need to pay for amy pricing courses 😜
Roland is the pricing king, no courses needed over here. We learn as we go, self taught, self driven, mountain goats!!
Any advice for dealing with clients who were abusive in the past? Really trying to get one nasty client in particular to stop calling.
Give her a high quote
There are alot of laws surrounding "handymen" including how much they can make. Most handymen also sadly do more than they should. Ie. Things that require a contractor's license.
What laws are there limiting how much a handyman can make? The only limits I have seen are size of the job, or potable water rules. Easily bypassed of you think about it.
Or limitations put in place by the insurance companies.
Licensing does vary slightly, but very little. Even in NY a handyman can do most things.
Do you have any information on how to manage a team of handymen? was thinking about doing the marketing and quoting but hiring more skilled people to do the jobs
People get multiple quotes and go with the lowest bid so this idea is always against you.
Undercharge to get word of mouth than raise them
I don't know, a handyman is not a licensed professional, so I do most home repairs myself, because most contractors are now charging about $500 per hour since the pandemic, so that is a rate higher than what most lawyers with education! Just do not try to take advantage of your customers.
Yes, it has to make sense for both parties.
MMMKKK Mr Macky
1:28 wow.. watch the language Dan! My 5 yr old is trying to learn about handy work over here... gez... try to get her to fix stuff around the house not be a rapper... 😑