Break Even help/ fun with billing!

[Rich R]

The numbers that are being discussed in Franks article is that for service calls only? Or is it for also when you bid out work lets say a Walmart or gas station?? Lets just say 15000 hours for pretend

Those numbers are based on a service type business, If you were doing new construction, you have more billable hours in a day, less overhead ( less trucks, insurances, fuel etc..)

The same rules would apply but your rate would be reduced (if you desired)due to more billable hours and less overhead

 

[Rich R]

Service based business with 4 electricians =

4 trucks
4 fuel bills
4 truck insurances
4 truck maint
4 sets of ladders
4 of every tool from benders to drills etc.
4 radios
2 - 3 hours of travel a day


New const. based business with 4 electricians

1 truck ( most of these companies have employees go straight to site)
1 fuel bill
1 truck insurance
1 truck maint
2 sets of ladders
2 sets of tools ( this is if company even provides tools, most require employees to bring they're own drills, benders etc.)
1 maybe 2 radios
0 travel time

 

[cadpoint]

Service based business with 4 electricians =
...
4 of every tool from benders to drills etc.
...

New const. based business with 4 electricians

2 sets of tools ( this is if company even provides tools, most require employees to bring they're own drills, benders etc.)

New construction guys get so Jipped ...

 

[Sparky555]

Blau is the man.

1500 billable hours in residential service is a generous number in my experience. Unless you have a good client base & good marketing in place your billable hours are going to be less. IMO 1000-1350 billable hours is more typical.
Dave

 

[emahler]

when you do a break even, or any type of pricing calculation, you have to look forward...

if you are paying yourself $26k, fine. But if you want $100k, you better figure it in to your pricing, otherwise you will never be able to "afford" it.

If you want to add a truck, figure it in. You want to purchase a new computer system, add it in...

if you don't charge for these things in advance, you'll always be robbing peter to pay paul to get them...

 

[peter d]

In September 1990, Frank Received This Follow-Up Letter:
Dear Frank:

....
It remains my contention that a new contractor cannot charge more than average. I had to work long and hard to come up with customers who used our services. I believe, had we charged more, fewer people would have switched to us.
.....

Sincerely,

Ron Coates

It's funny how some attitudes never die, particularly the myth about charging the going rate. Frank Blau's article is nearly 20 years old but yet the information and ideas are still fresh, and more relevant than ever.

 

[mdshunk]

You want to purchase a new computer system, add it in...

No kidding. Grow beyond just a tiny bit, and the PC won't cut it. I'm in a position of having a 5 year old server that Dell won't support past November, and the replacement Citrix server and a few Thin Client terminals will run 24K.

 

[emahler]

No kidding. Grow beyond just a tiny bit, and the PC won't cut it. I'm in a position of having a 5 year old server that Dell won't support past November, and the replacement Citrix server and a few Thin Client terminals will run 24K.

just remember this quote "the customer pays for everything"

 

[mdshunk]

It's funny how some attitudes never die, particularly the myth about charging the going rate. Frank Blau's article is nearly 20 years old but yet the information and ideas are still fresh, and more relevant than ever.

Right. After all, plenty of people bought Curtis Mathes televisions, and they flat out advertised that they were the most expensive TV you could buy.

 

[peter d]

No kidding. Grow beyond just a tiny bit, and the PC won't cut it. I'm in a position of having a 5 year old server that Dell won't support past November, and the replacement Citrix server and a few Thin Client terminals will run 24K.

24K for a computer system?? Why so much?

 

[mdshunk]

24K for a computer system?? Why so much?

There's probably a computer guy someplace saying "why so little". I don't know. Apparently that's what they cost.

 

[peter d]

There's probably a computer guy someplace saying "why so little". I don't know. Apparently that's what they cost.

Shessh...Well I basically know almost nothing about computers, let alone a whole system..but I assume this is multiple terminals with a main CPU or whatever it's called?

 

[zappy]

wow im going to be rich!i should be making 106.00hr.

wow im going to be rich!i should be making 106.00hr.

Plus using the flat rate pricing!I better not get my hope up too much this economy stinks right now

 

[emahler]

Plus using the flat rate pricing!I better not get my hope up too much this economy stinks right now

why not? we make $250+ an hour using flat rate...however, by your statement, i can tell that you have done absolutely no research on the topic, and do not understand the system 1 iota...

so, keep doing what you are doing and don't stress yourself....it's simpler that way...

 

[satcom]

Plus using the flat rate pricing!I better not get my hope up too much this economy stinks right now

"this economy stinks right now" all the more reason, to use flat rate pricing.

 

[zappy]

that why i'm here to learn from the best!?

that why i'm here to learn from the best!?

why not? we make $250+ an hour using flat rate...however, by your statement, i can tell that you have done absolutely no research on the topic, and do not understand the system 1 iota...

so, keep doing what you are doing and don't stress yourself....it's simpler that way...

?!?!?!?!?!?!?!?!?!?!

 

[emahler]

?!?!?!?!?!?!?!?!?!?!

proves my point...good luck

 

[iwire]

Plus using the flat rate pricing!I better not get my hope up too much this economy stinks right now

Quite seriously, give a listen to emahler's and satcom's experience. You would be foolish to not at least look into it a bit deeper before just brushing it off.

 

[john_axelson]

In my expierence you will receive less questions on T&M billables with a higher material mark up that with increasing rates.

100.00 x 1.2=120.00
100.00 X 1.5=150.00

Try increasing you hourly rates 3.75 dollars an hour (to achieve 30.00 a day)

Customer's may question you for the hourly material is seldom questioned in my experience.

Brian,

I thought we learned that we don't multiply by the percentage, but instead divide by it to make more money.

100 x 1.2 = 120, but 100/.8=125...

 

[brantmacga]

Plus using the flat rate pricing!I better not get my hope up too much this economy stinks right now

stay positive; and if you're segment is not doing so good, move into something else. That's what I did and everything's going just fine. I don't do t&m either.