$50/hour might include benefits
How much do you charge for a service call
- Thread starter jmsbrush
- Start date
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$50/hour might include benefits
Mr.Sparkle
Senior Member
- Location
- Jersey Shore
I think he is saying what you are by using an example.
so, if you are trying to compete on price...the obvious answer is to pay employees less?
that's why I dislike T&M...hard to compete on an hourly rate with a guys who pay their JW's $15/hr...w/ no benes...at $65/hr they do well...
if you pay a JW $30/hr +benefits...at $65/hr, you don't do so well...
problem is, the customer doesn't realize the difference between the 2 companies until after the work is done
FTR- yes, i'm just pulling numbers out of the air...
PetrosA
Senior Member
- Location
- Lancaster, Pennsylvania
so, if you are trying to compete on price...the obvious answer is to pay employees less?
that's why I dislike T&M...hard to compete on an hourly rate with a guys who pay their JW's $15/hr...w/ no benes...at $65/hr they do well...
if you pay a JW $30/hr +benefits...at $65/hr, you don't do so well...
problem is, the customer doesn't realize the difference between the 2 companies until after the work is done
FTR- yes, i'm just pulling numbers out of the air...
I like the approach your first comment conveys. Cutting expenses at the employees expense is a dangerous practice. One of a number of things is going to happen: The employee is going to have a really bad attitude; you'll get less than professional employees; or after a while the employee will start to steal your customers. In the first two cases the customer will figure out their mistake while the work is still going on, in the third case the boss will find out some time down the road
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Mr.Sparkle
Senior Member
- Location
- Jersey Shore
I like the approach your first comment conveys. Cutting expenses at the employees expense is a dangerous practice. One of a number of things is going to happen: The employee is going to have a really bad attitude; you'll get less than professional employees; or after a while the employee will start to steal your customers. In the first two cases the customer will figure out their mistake while the work is still going on, in the third case the boss will find out some time down the road
Well Said.
Rewire
Senior Member
- Location
- Lake of the Ozarks
I like the approach your first comment conveys. Cutting expenses at the employees expense is a dangerous practice. One of a number of things is going to happen: The employee is going to have a really bad attitude; you'll get less than professional employees; or after a while the employee will start to steal your customers. In the first two cases the customer will figure out their mistake while the work is still going on, in the third case the boss will find out some time down the road
This is why GM is going down the tubes,In any business employee costs is the easiest to manage.At this time their is an abundant labor pool so finding qualified help is easier and compensation can be adjusted toward profitability for the company.
iMuse97
Senior Member
- Location
- Chicagoland
Is it even possible to be in business for $50 per hour, when you consider that you still want to be in business 20 years from now? You have to feed yourself, house yourself, transport yourself, entertain yourself, give back to your community, continue your training, buy new tools, pay insurance, pay for inventory, (don't say you go to H. Desperado as your warehouse; those trips just add costs), pay for truck maintenance ($.30 per mile), etc. and do these things for your family, too, if you have or hope to have one. Look at how many billable hours you have each year and figure out how much you'd have to net from each hour to make a decent wage. And get a good accounting program and auditor to make sure you keep on top of it.
If you're anywhere near Millwakee or Madison the Union Shops are charging much more than $65/hour (80-100) and may even charge a two hour minimum or a set fee just to show up.
Rewire
Senior Member
- Location
- Lake of the Ozarks
one guy working out of his house has very little overhead so $50.00/hr is a doable thing if expansion is not an issue and the wife works.
see, where you and I disagree is that GM might be going down the tubes, but it's about productivity not wages...however the Wal-Mart mentality is bringing the entire country down the tubes...
macmikeman
Senior Member
- Location
- Planet macmikeman
Erik, do you ever sleep? It's past 7:00pm here right now, what is it like 1 or 2 in N.J. ? I hope you don't have to do any hot work tommorow.
iMuse97
Senior Member
- Location
- Chicagoland
Good point. I'm hearing you. But even such a person may eventually find that he may not net even half $50.00 per hour.
heck, find a better wife, with a better job, and a guy can have a great life without destroying his body for nothing...
LawnGuyLandSparky
Senior Member
There are many reasons why GM is going down the tubes. Too many eggs in the huge SUV basket when gas was pushing $5.00 a gallon is another.
Dnkldorf
Senior Member
I wonder if it has to do with someone else offering the same or better product, at a lower cost.
- Location
- Massachusetts
Lets get back on this threads topic.
jmsbrush
Senior Member
- Location
- Central Florida
Good morning guys, Thanks Bob.
Yes I do not want this thread locked. Even though it has provide good information. I see allot of people are talking about what they charge by the hour.
I was more interested on how much did you charge for the service charge, trip charge or the dispatch fee, what ever you want to call it, just to show up,
not turning a wrench at this point.
Aline posted a good link on" don't get tripped up on the trip charge"
sullivanelectric
Member
$110.00 Min.
$110.00 Min.
$110.00 minimum service call.
$110.00 Min.
$110.00 minimum service call.
I'm jealous of the guy with a wife that has a good job so he can work for nothing.
I would love to be able to do this kind of work for less money but unfortunately my wife is going to school right now so my business needs to be able to support us.
Once she finishes school and gets a job though I'll be able to slash my prices to the bone.
I'll be able to beat all my competitors prices.
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