# Forum Home Renovation General Odds & Sods  Handyman charges

## hardwoodjoint

I started a handyman business in NSW. 
My Father was a builder in the UK and I grew up on a ladder with a paint brush or a chisel in my hand so I know what I've let myself in for.
I base my my quotes/charges at $40.00 per hour, what do you charge? Is it reasonable considering the investment in the tools transport etc?
I'd like to know what other people charge. 
Cheers all
Tony

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## Bloss

That seems low to me, but it depends on your business and on the market. If your work is valued and you are prompt and well regarded and accurately estimate for the jobs then the rate is not so critical - a worker might charge $40 hr but take twice as long or do much worse work than one who charges $80. One things is certain - it is easy enough to discount or reduce because you get some regular or repeat work or to meet another quote form the competition, it is impossible to increase your rate! 
Are you taking out public liability & indemnity insurance to cover your work and anything that might be attributed to you or your work that might subject you to a claim? Are you intending to pay tax? Will you have worker's compensation cover? Have you factored in the cost of your tools and their maintenance and replacement? Have you worked out how you will mange when you have finished a couple of hours or days of work or more and the customer refuses to pay? What are you going to do if you damage something by accident while doing your work? What are you going to do if you get sick or injured at work? :Frown:  
There are other questions too that you should at least think about. Not trying to talk you out of it - I reckon it can be a good job with lots of freedom and a reasonable living, but you need to go in with your eyes open.  :2thumbsup:  
Do a bit of research anyway ; http://www.abc.net.au/catapult/basics/s1279512.htm  and http://www.ato.gov.au/individuals/co...tent/21572.htm  and http://smallbusiness.smh.com.au/star...=GSBSMH13&xA=0

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## bricks

I work in a plumbing company, 150 plus employees, our absolute minimum rate is $52 per hour (cost rate, no profit).

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## masterplasterer

I want a job with bricks!!! 
Running a business on $40.00 an hour is near impossible. Even more impossible is getting clients to pay me $1600.00 a week.

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## Bloss

> I want a job with bricks!!! 
> Running a business on $40.00 an hour is near impossible. Even more impossible is getting clients to pay me $1600.00 a week.

  'bricks' is a plumber mate . . .  brain surgeon only thing close . . . nuff said . . .  :Biggrin:

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## bricks

Plumber $25
Insurance, super, Van, tool repair, sundry items, work cover levy, Office cost's, site allowances, traveling time?.- $27 
My mechanic charges $65 per hour, Our normal charge out rate is $65 per hour.  
I can't understand how any one running a service type business can charge less than $52 dollars / Hr ??? How do you do it??? If you can tell me your secret I will dominate the plumbing industry.

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## bklooger

you cant people dont get that your hourly rate covers all your expenses and profit.
people also dont get that when your self employed you dont get sick leave or holoidays covered 
it staggers me how many people want you to work at 5 or 6pm. they expect to get overtime when they work those hours or weekends but whinge when you say no or i have to charge extra. 
 i think $50 is probably base and the bigger operators probably more to aloow for bigger costs and overheads

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## Bloss

:Wat they said:  Jokes about 'rich' plumbers aside - the current average weekly earnings is sitting at around $30 an hour - that's just a wage/ salary not a charging rate for someone who is working in a business or as a sole trader. 
As I said in my initial reply post his $40 seems low to me  - way low. But he appears not to have come back so maybe he is swamped with work at that price . . .  :Biggrin:  or is happy to take cash in hand and/o  all the risks I mentioned. 
But as has been said there are too many out there who know the cost of everything and the value of nothing. The smart ones know that value is everything - try to do work for them!  :Wink:  
Trouble is as time get tougher - as they will keep doing for a while - those who do good work and provide value will face competition from those who don't care about quality. It's hard to explain to a potential customer who has no idea about the nature of the work to be done why they would do better taking the higher quote . . .  :Frown:

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## pharmaboy2

price also determines how much work you get at one site.   Had a carpenter come and do some work - 45 cash/hr - got 3 hrs work.  young carpenter wants 30/hr - gets full week of work.  If work is with householders, then the cheaper the price, the more likely they will find more for you to do, in lieu of them doing it themselves.  obviously, its much cheaper to go to one place for a full day than have travelling to and from everywhere to take earning hours out of the day.

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## Bloss

Not just the hours they take but what they do in the hours that matters and that's highly variable.  :2thumbsup:  I know I am old-fashioned, but I reckon cash payments and not paying tax is stealing from the community - theft however one wants to rationalise doing it . . . but that's just me . . . :Frown:

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## bklooger

seems reasonanle lets see you have workers compensation, payroll tax, superannuation, sick leave and holiday loadings, public liability insurance,accounting , advertising , etc im sure there is more  
im sure i missed some but i can tell you its skyrocketing up as everyone wants their cut

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## Gaza

at uni we worked out the overheads on a tradesmen it worked out to be 110% off what they earned in their hand. 
ie $20.00 clear after tax costs the buniess $40.00. 
Notmany tradesmen in Aus will be happy with $800.00 in their hand after tax for 40 hours. 
That is why "ABN" subsontractors / employees are so common but at the end of the day this is not a long term solution for a worker who ends up not paying all of their obligations. 
I have a commerical carpentry company we have zero ABN's working for us out of 30+ plus guys. 
we pay around $30.00 after tax for an average worker that means we when do hourly rate work i am not even breaking even at $65.00 per hour but that is all the market will pay. 
catch 22. 
should head over to contractortalk a usa forum they love talking about hourly rates and all business realted stuff

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## journeyman Mick

> .........should head over to contractortalk a usa forum ........

  Got a link? 
Mick

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## Bullfright

> Got a link? 
> Mick

  www.contractortalk.com

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## journeyman Mick

Thanks Bullfright. :Smilie:  
Mick

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## skot

I have worked for myself since 1984 (not in the Trades) and when I started out I did the sums for working out a reasonable rate. At that stage if you took the Wage of someone working for a company, you had to add 20% JUST to break even with the employed worker's wage. This did not take into account tools and equipment and consumerables. 
Since then we have the 9% Super so that brings it up to approx 30% . So your $40.00/hr is only equivalent to someone on $30.00/hour THEN take out expenses and you need to consider at least $60.00/hr IMHO. 
If you do good work...you will get jobs. I sometimes feel sorry for self employed tradies who have to deal with Joe Public who is only looking for the cheapest price. When I get someone around to do work, mostly I do my own handywork so Plumbers & Sparkies are the ones I deal with.... I have a fair idea what is involved from previous jobs, and if the quote is within 20% of my "approximation" of the job, they get it there & then. 
So hardwoodjoint, lift your price and stick with it.

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## hardwoodjoint

Hi all,
Sorry I haven't got back to you about this but your right Bloss, I've been swamped with work. 
I don't do private work but I do all the maintenance work for a couple of Estate Agents (rental properties) that way I know I'll get paid.
I could charge more but I like to get plenty of work at the cheaper charge.
I think I'll break even after paying my insurances, tax etc. 
Cheers all
Tony in sunny Dapto

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## nev25

> I think I'll break even after paying my insurances, tax etc.

  Then whats the point?????

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## Bloss

> Then whats the point?????

  I think he he means he still draws a wage that is enough for him after those costs . . .  :Confused:

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## bricks

> Hi all,
> Sorry I haven't got back to you about this but your right Bloss, I've been swamped with work. 
> I don't do private work but I do all the maintenance work for a couple of Estate Agents (rental properties) that way I know I'll get paid.
> I could charge more but I like to get plenty of work at the cheaper charge.
> I think I'll break even after paying my insurances, tax etc. 
> Cheers all
> Tony in sunny Dapto

  A friend of mine did this also, by way that I mean he gave a very low price to real estate agents simply to get his business turning over. He also found that most agents pay on a regular basis, some didi'nt but he did'nt work for them anymore. As he became more established he moved into the private market, made his mistakes, adjusted his pricing to adapt it to what he was doing and now is still working for the estate agents from time to time but he has a sucessful business making money in the private market.
He's a locksmith.

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