Service tech question

[Steve McKinney]

Guys I know we need to know our overhead expenses and all of that, but my question is simple.

Is there a "rule of thumb" on what you, as the owner/manager of a small shop, try to make off of the techs? Especially small shops. 1-2 man in nature.

Thnx in advance. Learning by trial and terror!

 

[satcom]

Guys I know we need to know our overhead expenses and all of that, but my question is simple.

Is there a "rule of thumb" on what you, as the owner/manager of a small shop, try to make off of the techs? Especially small shops. 1-2 man in nature.

Thnx in advance. Learning by trial and terror!

If we mark up his labor 30% we may make 4% and we consider that decent, every business will differ, there is no set amount

 

[quinn77]

what are your fixed costs?
what are your labor burdens?
taxes...insurance...etc...etc....after you determine how much it costs to open your doors...dispatch a tech...etc...then the question is how much profit would you like to see for each hour the tech is working...and at the same time being competitive...there is no def answer. you just have to figure it out.

 

[quinn77]

ps...we charge 78.50 p/hr with 2 hr minimum plus 50 dollar dispatch if outside the service area. we have 3 techs, 3 apps, 3 trucks, and I make good money running the show....owner makes REAL good money. our profits are generated from 24/7 emergency service, mark-up on materials, and honest business. we have already completed over 350 service calls and small projects this year. we set a price, we do it to the best of our ability, and it seems to be working. cant get too greedy. stick to your guns and as the business ages...as long as your doing your part, the business will grow.
good luck

 

[Rewire]

The first guy I worked for told me charge 3 x the wage I dont know how he came up with it but he did well.I checked this against our true costs and it was not that far off.