Why small jobs hide thin margins
A $850 job feels like a good day, until you subtract the material run, the drive, the tools and consumables, and the time you spent quoting. Handyman work is made of many small jobs, so small leaks repeat every day.
Worked example: an $850 job
Materials were $210. Eight hours of your time at a loaded $35 an hour is $280. Fuel and truck wear came to $45, consumables and tool wear to $25, and the job’s share of insurance, phone and software to $60.
- Total cost: $210 + $280 + $45 + $25 + $60 = $620
- Profit: $850 - $620 = $230
- Margin: $230 ÷ $850 = 27.1%
Add one extra hour of driving and a second trip for parts and that margin drops fast. This is why a minimum charge and a trip fee matter.
Costs handymen often miss
- Drive time and the second trip for the part you did not have.
- Quoting and scheduling time for jobs that never book.
- Insurance, licensing and software, spread across jobs.
- Tool wear and consumables: blades, fasteners, caulk, sandpaper.
- Your own labor at a real wage, not zero.
What to do with the number
Run your last ten jobs through the calculator. Find the job types with the lowest margin and fix them: add a minimum, charge for the trip, mark up materials, or stop taking them. Small changes on frequent jobs add up quickly.
Frequently asked questions
What markup should a handyman charge on materials?
Many handymen mark up materials to cover sourcing time, pickup and warranty risk. The right figure depends on your market, so use the calculator to see whether your current pricing leaves enough after all costs.
Should I charge hourly or by the job?
Either can work. Flat-price jobs reward efficiency but punish underestimating; hourly is safer but harder to sell. Whichever you use, check the effective margin per job.
What is a good profit margin for handyman work?
It varies widely with market, overhead and whether you work alone. Judge it by whether you are paid a fair wage for your time plus a profit after every cost.
Is the calculator free?
Yes, free with no account. TrueMargin Pro is $15/month and saves each job so you can see your margin trend.
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