Saturday, August 9, 2008

How much do I charge?

That is the most difficult part of having a business.

The average customer has no idea that self employed people pay 34% federal tax, plus state tax, city license fees, insurance fees, gas, tools, wear and tear on vehicles etc. All that needs be factored in.

All most people want is a good job for a fair price. More importantly they want someone they can trust. One problem is some Handypeople are more hungry than others and will jump at any job just to get the money at 50% less than anyone else is willing to do it for, if they know how to do it correctly or not. This gives others a bad name who are good at what they do. If your not sure you can do the job expertly, don't do it. Refer it to someone else who can. Customers will remember that and Karma will too.

If someone calls and wants their roof replaced I tell them I'm sorry but that isn't in my scope of work but I can recommend a company that I trust that can do it. When that company has a customer that has a leaky toilet they can refer me. But only refer companies you trust! Their reputation is now yours!

If you can do the job but don't know what to charge ask around. Visit your local Home Depot and look at the shelves. Toilet Installed for you $100.00 etc. You also need to know the going rates in your local area. Tile is 4 bucks a foot, fencing is 22 bucks a foot etc. If the first question out of a customers mouth is "What do you charge?" They are usually looking at price only.

Never give a firm estimate over the phone. If you have to, give a range. Example: 30 -40 per hour depending on bla bla bla.

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