More jobs at the wrong price just makes you tired. Before you spend a dollar on marketing, fix the price.
Three numbers
- Loaded labor cost per hour. Wage plus payroll taxes, workers comp and benefits, spread over the hours you can actually bill.
- Material markup. Handy's marks up standard materials 50%. Special orders get a lower markup and a deposit.
- Target gross profit. Handy's aims for 50% on every estimate and won't send one that shows red.
Add a minimum charge per visit (Handy's uses 2 hours) and an emergency rate for same-day work.
Sell the experience, not the hour
"A drywall patch is a drywall patch no matter who completes it... it's the whole experience that comes along with it that we're trying to really sell."Tim Leary
Tim's team doesn't quote hours over the phone, because customers divide the price by the hours and argue. They sell what the customer actually buys: someone who answers, shows up, protects the home and stands behind the work.
Do this this week
Run your numbers through the pricing calculator and write your labor rate, markup and minimum on one card.