After ten years of estimating handyman jobs, I’ve learned a few tricks. And in this article, I will share everything you need to know to estimate jobs quickly and accurately.

Whether you are looking for helpful estimating tips that will make you more money or just a free template you can use for your first estimate, I’ve got you covered.

Let’s get started.

Contents:

• Why estimating is so important


• How to estimate handyman jobs


• How to create and send a handyman estimate


• What to include in a handyman estimate


• Do you always need an estimate?


• Free handyman estimate template


• Five tips for more profitable estimates

Listen to the podcast version of this article, which includes extra content and tips. Listen right here or on your favorite podcast app!

HS039 – Estimating Handyman Jobs – Proven Tips for Boosting Income

Why estimating handyman jobs is so important.

The decision about how much to charge is where your profits are made or lost. If you underestimate a project, you lose money and waste time. Overestimating is preferable, but can lead to losing customers.

When you compare how much time you spend estimating a project to how much time you spend performing the labor, estimating takes up a relatively small amount of your time.

But, your decision in these short minutes (or even seconds) will impact your profitability for the entire job. A small mistake can cost you hundreds and sometimes thousands of dollars.

So it’s essential to give this process the respect and attention it deserves.

How to estimate handyman jobs (step-by-step)

You can use several methods to estimate a home improvement or repair.

One example is seen with painters or flooring installers, who often create estimates based on a project’s square footage or yardage.

Another example is seen with companies that charge flat rates for projects. A lawn care company may charge $35 per week for a mow-and-blow, or an electrician may charge $250 to wall mount a TV.

However, as a handyman, it rarely makes sense to copy these estimating strategies. Instead, it’s usually best to stick with good old T&M (time and materials), especially when first starting. T&M is when you simply estimate how long a project will take you, multiply that by your rates, and then add on the material costs.

Basing your estimates on time and materials is the best way to ensure you make a profit and avoid undercharging, especially when estimating your first few jobs.

If you ask pro handymen on online forums about how they charge, most experienced pros will say that charging by the hour is a terrible idea and you can make more money with a flat rate or quoting each job. But those pros have been in business for years and have estimated hundreds of projects. Most have forgotten what it’s like to be a beginner, so don’t listen to them. There’s nothing wrong with charging based on time. Most of the pros I consult with make more money using T&M to esimate.

Put simply, unless you specialize or have loads of experience, stick with T&M. As you gain more experience, you can utilize other methods.

Here’s how to estimate handyman jobs based on time and materials, step-by-step.

Step #1 – Assess the project

The first step is to thoroughly understand what the project entails. You’ll want to learn things like:

• What exactly needs to be done?


• What materials will you need?


• Is the project area easy to access?


• Is there anything that could go wrong or be more challenging once you get into the project?


• Is the customer going to be difficult to deal with?

Assessing the project may require a visit to the customer’s home. If you’ve never done a given project before, or if you’re just starting your handyman business, then seeing the project in person is essential to creating an accurate estimate.

However, once you gain experience, you may feel comfortable estimating based on pictures sent by the customer or asking the customer some questions. This is how I quote every job now, and I never give in-person free quotes because they eat into my profits.

Step #2 – Calculate the cost of labor

Once you have a clear picture of what needs to be done, the next step is to figure out how much you will charge for the labor portion of the project.

Assuming you know how much you need to charge for your time, here’s how to calculate the labor portion of your estimate:

1. Break the project down into steps and write down each step.


2. Visualize yourself completing each step and write down a time estimate for each step.


3. Add up the time (include time for shopping, setup, and cleanup).


4. Multiply the total time by your rates to get your labor.


5. Then DOUBLE it.

Why double it?

Because of the little quirk in human psychology known as the Planning Fallacy, we all tend to underestimate how long a project will take (usually by about half), even if we have done a similar project. Things always seem more straightforward in your mind. But the reality of doing a project is always more complex.

So, I advise any new handyman to take your estimate of how long a project will take, then DOUBLE IT, and base your estimate on that amount of time.

Yes, it may be uncomfortable or extreme, but it’s better than underestimating a project and losing money.

Step #3 – Calculate the cost of materials

Here, you’ll determine how much you will charge for the labor portion of the estimate.

This process is similar to calculating the labor and goes like this:

1. Visualize yourself completing each project step (don’t forget setup and cleanup).


2. Make a list of materials you will need as you imagine doing the project.


3. Take that list of materials and write down the cost of each item. You may have to do some shopping online to figure out the cost.


4. Total up the materials and then apply a markup.

The amount you will charge for materials will be the total cost plus whatever markup you apply. To learn more about the appropriate markup for materials, consider investing in my pricing course for pros.

Step #4 – Add it up!

Now that you have the labor and materials, simply add these together to create your estimate.

It’s important to note that most of your profits as a pro handyman will come from your labor. As a self-employed handyman, your profits should be built into your rates, so there is no need to apply a markup to the labor portion of your estimate.

However, you may calculate your profits slightly differently if you run a company with employees. For example, you may calculate the total cost of materials and labor, then apply a markup of 25% to the entire job. But, as a self-employed handyman, it’s usually best to simply calculate your profits into your rates, as I demonstrate here.

How to create and send a handyman estimate

There are several ways to provide estimates to potential customers, and there is no correct answer for every situation.

Sometimes you may give a verbal estimate over the phone. Other times, you may send your quote via text. And in some cases, you may write up a formal estimate, email it to the customer, and have them sign it (several apps make this process seamless).

Which option you choose depends on who the estimate is sent to, your relationship with that person, and what the job entails.

Recently, a new customer called