USM/Faculity source. DNE IN NJ.

[Fordean]

I have these companies asking us to go sometimes up to 20 miles away and there clients are able to make a DNE (do not exceed) Example 225.00
Includes everything. Materials Labor, tolls fuel.

And if it is going to exceed to call for approval. I tell them our techs dont get the pricing on materials at counter plus they are not to negotiate over the phone. What do we do. Any other scenarios would like to hear about them

We send a tech out and it takes 3 hours out of day minimum.
How much should you allow for travel, tolls, Etc.

How are some electricians only charging $58.00 and surviving?

 

[iwire]

I do service calls for a large company and we have a number of accounts like this. The office will let me know what the NTE is for the call, once I get there I have to decide if we are going to exceed the NTE. Often we are and I have to call our shop and they call the customer to have the PO amount adjusted. Many times I end up getting a call from the client asking me to explain to them directly why we are going over. Sometimes I have even taken a bunch of pictures and email them to the client via our shop to help explain why the job was more then the NTE.

Of course all this adds even more time to the job. With one of the clients I must make two phone calls when I arrive to log in and two calls when done to log out. It's all part of the fun of servicing National accounts.

 

[Rewire]

I have these companies asking us to go sometimes up to 20 miles away and there clients are able to make a DNE (do not exceed) Example 225.00
Includes everything. Materials Labor, tolls fuel.

And if it is going to exceed to call for approval. I tell them our techs dont get the pricing on materials at counter plus they are not to negotiate over the phone. What do we do. Any other scenarios would like to hear about them

We send a tech out and it takes 3 hours out of day minimum.
How much should you allow for travel, tolls, Etc.

How are some electricians only charging $58.00 and surviving?

1 man shop VS a 10 man shop,if I need $160.00/hr to cover expenses then I need a minimum of $80.00/hr for two men but if i have 4 men then it drops to $40.00/hr and 8 men it drops to $20.00/hr.

 

[nhfire77]

I do service calls for a large company and we have a number of accounts like this. The office will let me know what the NTE is for the call, once I get there I have to decide if we are going to exceed the NTE. Often we are and I have to call our shop and they call the customer to have the PO amount adjusted. Many times I end up getting a call from the client asking me to explain to them directly why we are going over. Sometimes I have even taken a bunch of pictures and email them to the client via our shop to help explain why the job was more then the NTE.

Of course all this adds even more time to the job. With one of the clients I must make two phone calls when I arrive to log in and two calls when done to log out. It's all part of the fun of servicing National accounts.

Damn TRU's, and their completion codes

 

[iwire]

Damn TRU's, and their completion codes

Yeah, I really enjoy the extra steps. :roll:

 

[quogueelectric]

Yeah, I really enjoy the extra steps. :roll:

I love when they tell you how long it will take you to do the job and you never get to see anyone actually do it in this time.

 

[emahler]

1 man shop VS a 10 man shop,if I need $160.00/hr to cover expenses then I need a minimum of $80.00/hr for two men but if i have 4 men then it drops to $40.00/hr and 8 men it drops to $20.00/hr.

while not quite such a drastic savings...the cost per man hour typically does decrease with the more man hours available...

 

[Fordean]

Dont understand

Dont understand

cant understand what you mean by the 160/80/40/20.

Can you clarify. I look at it like this

1 man per hour (decent pay with bene/etc is about 42 per hour.
with everything.

truck a 5 dollar per hour costs.

 

[emahler]

cant understand what you mean by the 160/80/40/20.

Can you clarify. I look at it like this

1 man per hour (decent pay with bene/etc is about 42 per hour.
with everything.

truck a 5 dollar per hour costs.

the gross overhead required to run a 2 man shop is not substantially different than that for a 5 man shop...your direct costs are proportionate, but your overhead (office, office staff, phones, office supplies, etc, etc) are pretty close....and this number per man hour is less for a 5 man shop than for a 2 man shop...

for example....cost per hour

labor and burden = $40
truck = $5

total direct cost = $45/man/hr

now, overhead for a 2 man shop = $50/hr
overhead for a 5 man shop = $60/hr...

2 man shop = $25/man hour ($50/2=$25)
5 man shop = $12/man hour ($60/5=$12)

2 man shop = $45 + $25 = $70/hr
5 man shop = $45 + $12 = $57/hr

 

[Fordean]

Solution

Solution

By your standards listed. What would be the Per hour rate to make a profit with those costs?

These Maintenance companies want $58 per hr. To include all costs.

 

[emahler]

By your standards listed. What would be the Per hour rate to make a profit with those costs?

These Maintenance companies want $58 per hr. To include all costs.

my standards were just pulled out of a hat to show an example...

we used to do quite a bit for the national maintenance companies, these days almost nothing...

they have gotten tighter in the last year or two, they used to pay a little better...but they were good filler work for us when we did almost nothing but service work.

 

[GUNNING]

Ooops, Ive done it again.

Ooops, Ive done it again.

Im still waiting on a check from the last facilities company I did work for. Hurry up and get er done on a friday emergency.


Still waiting....

They are out of Sarasota, FL. Same routine. Mulitiple phone calls. Get the work done. Then they dont know who you are.

After 90 days I tell them Im going to send the bill to the franchisee and then they remember me, need paper work, it becomes important.

 

[Fordean]

rate,

rate,

I guess your one of those 45 dollar a hour guys Emahler

 

[emahler]

I guess your one of those 45 dollar a hour guys Emahler

yep...you got me