Service call vs 3 or 4 day job

[OK Sparky 93]

Just curious, when you first started your business, if you charged a different hourly rate, for a service call, and say a job you wouldn’t consider a service call?

I am a one man shop, if that makes a difference.

I am trying to do things on a flat rate, however there still has to be an amount you need per hour, to cover what your needs are. Now back to the question.

Have a great day!

 

[brantmacga]

Yes, different hourly rates for service calls vs. short term projects. I also use flat-rate for service.

 

[OK Sparky 93]

Yes, different hourly rates for service calls vs. short term projects. I also use flat-rate for service

Right now I am basing my device call rate on 1000 billable hours. How many billable hours are you basing short term projects on?

 

[kwired]

You do need to consider the fact that often service calls might only be a few minutes on site up to an hour or two, yet drive time and other aspects might make that call kill 3-4 hours of the day that you can't really bill to anyone else. At least some that lost time should go into the minimum amount you typically bill for the service charge. Many have a minimum service charge because of this and usually covers at least the first hour whether you are there for that full hour or not.

 

[brantmacga]

Right now I am basing my device call rate on 1000 billable hours. How many billable hours are you basing short term projects on?

1000/hrs is accurate for a one man shop. If you had office staff, it should be closer to 1500 billable hrs.

On short term projects the rate is based on 2000/hrs but I wouldn't be sending service techs to a job like that. For you, I'd probably go closer to basing it on at least 1500-1800/hrs. to be competitive with larger shops.

 

[brantmacga]

You do need to consider the fact that often service calls might only be a few minutes on site up to an hour or two, yet drive time and other aspects might make that call kill 3-4 hours of the day that you can't really bill to anyone else. At least some that lost time should go into the minimum amount you typically bill for the service charge. Many have a minimum service charge because of this and usually covers at least the first hour whether you are there for that full hour or not.

OP is basing his rate on 1000 hrs/yr to account for that.

 

[OK Sparky 93]

You do need to consider the fact that often service calls might only be a few minutes on site up to an hour or two, yet drive time and other aspects might make that call kill 3-4 hours of the day that you can't really bill to anyone else. At least some that lost time should go into the minimum amount you typically bill for the service charge. Many have a minimum service charge because of this and usually covers at least the first hour whether you are there for that full hour or not.

I think I have that part covered. I’ve read enough post and listened to different podcast/ webinar type stuff to understand that I’m not going to have 2080 billable hours.

I’m just trying figure out how I need to differentiate what is a service call and what is a short term project.

I understand taking on a project that is going to be 2 days or a week, would be short term.

If it is a full day, like a hot tub project for me, would you call that a SC or a STP?

How do you guys base your rate for each?

 

[brantmacga]

I think I have that part covered. I’ve read enough post and listened to different podcast/ webinar type stuff to understand that I’m not going to have 2080 billable hours.

I’m just trying figure out how I need to differentiate what is a service call and what is a short term project.

I understand taking on a project that is going to be 2 days or a week, would be short term.

If it is a full day, like a hot tub project for me, would you call that a SC or a STP?

How do you guys base your rate for each?

If its a single day project, you need to keep the same service rate. I consider short term a minimum of 1/wk. You could tweak it a little for 3-4 days if you think that's needed to sell a job, but its likely other service companies in your area are going to stay close to their normal rate.

 

[OK Sparky 93]

To cover my annual nut, and make sure I wasn’t going to be in the red, I figure, I have to least have a 1000 hrs, for service calls. It may be more, but I know since November, I’ve been looking for work, more than I have worked. SUCK!

If had any staff, my rate would have to be more to cover their salary, no matter the billable hours.

And as someone else’s employee, my hours were all over the place. Never 2000. Maybe a best around 1600and those were most all STP’s.


I hope I’m making sense!