"Doug Srofe" wrote in message
. ..
I am starting a new home repair and handyman business in Central Florida.
I would be greatful if anyone out there that has the same kind of business
would be willing to share their pricing structure as well as any other
business advice. Please feel free to reply to me directly if you wish.

Thanks so much in advance.


Can we assume you have the basics like a license and liability insurance?

Two things determine pricing:
1. Cost of materials, overhead, and your time.
2. What people are willing to pay

Overhead can be a little tough to figure, but look at some basics. How many
billable hours per week do you expect to have? Many tradesmen work 45 to 60
hours a week, but lets take 40 as an average, or 160 per month.

Figure the cost of your insurance, truck payment, fuel, wages (sub
categories are health insurance. employment tax, vacation pay, etc.) phone
bill. tools, (depreciated in some cases), etc. Divide that total by the
expected 160 hours a month that you can possibly work. That is the base
hourly rate. Add some profit and you have a good start. There are many
easily overlooked, but real expenses. Truck repairs have to come from the
business. Your customer may not give a damn about the brakes on it, but yes,
they are the ones paying to keep it on the road. Truck expenses are part of
the business, but your wife's car comes from your earnings.

You total up all the expenses, divide by 160 and have an minimum hourly
rate. Is this what you charge the customer? Maybe, but not always. If
the total comes to $80 per hour, people will not pay that for your services
so you find another line of work and move on. But if they come to $15 an
hour and people are willing to pay $40, that is what you charge and you make
a good living.
--
Ed
http://pages.cthome.net/edhome/