When our professional service technician knocks on your
door, many costs have been incurred just to get him there, ready to do the job.
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Insurance - Trucks, Liability, Fire, Theft, Property, Worker's
Compensation, Drug Tests, etc.
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Specialized Training |
Periodic Lecture Courses & Refreshers |
Truck Maintenance and Operation - Gas, Oil, Tires, etc. |
Test Equipment |
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Taxes - Income, Property, Business, Social Security, Employment
Compensation |
Yellow Page Advertising, Radio, Television |
Trucks (ladders, etc.) |
Tools |
Warehouse, Shop and Office Rent |
Quality Control |
Stock of Replacement Parts |
Phone, Light Heat |
Service Management Administration |
Office Equipment |
Computerization |
Business Expense - Legal Counsel, Recruitment, etc. |
Employee Benefits |
Office Help |
Stationery, Office Supplies and Postage |
Don't judge service charges solely by the time the technician
spends in your home or business.
When our professional service technician arrives at your door,
many costs have already been incurred just to get the technician and our service
truck there, ready and able to complete the job.
Without years of training, it would not be possible for a
doctor to make a diagnosis and prescribe a remedy. Consider for a moment
that it isn't just his initial training, but an on-going variety of continuing
study, and the expense of maintaining an adequately equipped staff and office.
As a patient, you pay for his knowledge and skill plus a share
of his business costs (overhead). Even if he spends only a few minutes
with you, his fee could range from $50.00 to $150.00 depending upon his degree
of expertise.
This analogy holds true in any service business. The
charge for providing service on your premises cannot be determined solely by the
time it takes the technicians to make the repairs.
A qualified service organization's costs begin with the salary
of the professional technician. This amount is the same whether the
technician is actually making repairs on customer's premises, traveling to keep
service appointments, or participating in training programs to sharpen skills.
The cost of doing business (overhead) must also be added to
the technician's salary. These overhead costs can amount to substantially
more than the technician's salary.
Now comes profit. A 15% net profit on the selling price,
although seldom realized, would be ideal. Accordingly, if your service
charge is $200.00 and we are efficient enough to earn 15% of the $200.00, we
earn 30 taxable dollars. We are sure you'll agree that is not excessive
for providing top-quality services on your premises.
All things considered, the cost to a service organization for
its service technician's time on the job is the same whether he works with tools
or not. A service call that results only in a diagnosis and estimate for
resolving the problem warrants a service charge. |
