Author Topic: Over head  (Read 1652 times)

Offline Rick32k

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Over head
« on: December 12, 2012, 07:38:52 PM »
I fixed a fridge for someone, the overload relay capacitor was $15, the fan motor was $100. After $115 I barely had enough room for a decent profit. I only made $25 on the call. I find that this is a common problem. Any suggestions?

Offline Patricio

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Re: Over head
« Reply #1 on: December 12, 2012, 07:44:42 PM »
Charge more
Great Old Fashion Hometown Service

Offline Rick32k

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Re: Over head
« Reply #2 on: December 12, 2012, 07:46:02 PM »
Then they'll just junk the machine and get a new one.

Offline domain

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Re: Over head
« Reply #3 on: December 12, 2012, 07:47:35 PM »
Charge more
X2. Charge enough to make it worth the effort and time. If that's not possible, its not economical to repair. :D

Offline Rick32k

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Re: Over head
« Reply #4 on: December 12, 2012, 07:50:30 PM »
Is there like an industry pricing list? Or is it based on each tech mostly? Whe do you guys get your parts whole sale? What parts do you keep on your trucks

Offline Patricio

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Re: Over head
« Reply #5 on: December 12, 2012, 08:00:20 PM »
I learned long time ago, don't sell your self short.  Good customers don't mind paying a fair price for good work.  That job should have been $200 plus.  Only the cheap want it on the cheap.  Those will dish you in a heartbeat.  Be a professional, Expect a professional wage, don't be bashful, charge accordingly.
 Unless, your work is questionable in your eyes.
Great Old Fashion Hometown Service

Offline Rick32k

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Re: Over head
« Reply #6 on: December 12, 2012, 08:02:37 PM »
Good advice thanks! What parts do you keep on your truck.

Offline Patricio

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Re: Over head
« Reply #7 on: December 12, 2012, 08:30:05 PM »
I am fortunate, I have 2 parts supply very close to my service area, otherwise I order online from Repair Clinic or Appliance Parts Pro.  They supply parts at a technicians price if you ask for the discount.   As far as what I carry in my vehicle, it comes to you as you you get experianced at the jobs you do.  Switches, water valves, ignitors, fuses, T-stats, ice makers, etc.

There's an appliance blue book for under $200 for price quidelines.  I deviate from it for the most part like 10% less cause of the economy I live in.  It stil a good wage if you manage your business expenses accordingly. 
Great Old Fashion Hometown Service

Offline john63

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Re: Over head
« Reply #8 on: December 12, 2012, 09:21:57 PM »
Be a professional, Expect a professional wage, don't be bashful, charge accordingly.

****************

Took the words right out of my mouth :)
100% true.

****************

<<<There's an appliance blue book for under $200 for price quidelines.>>>

*****************

A must have "tool".

*****************

<<<It stil a good wage if you manage your business expenses accordingly.>>>

*****************

That's an excellent point---and one that isn't discussed much anywhere.
Managing expenses is imperative.
Know your daily/weekly/monthly/quarterly/annual expenses---and profits.
Plan strategies based on these figures.
It can be a simple thing such as getting a gas card with low interest and/or cash back---if used at a specific retailer (BJs/Walmart/Costco etc...) This can save a few hundred dollars per year.










 








Offline BevTech

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Re: Over head
« Reply #9 on: December 16, 2012, 08:55:28 PM »
All very good answers. IMO the #1 factor has to be you being paid for your work thereby charging competitive rates up against others. Your quality workmanship and customer focus will shine through and the customer will be likely to hire you again and recommend you to neighbours in the future. I believe a good tech must keep a good stock of the usual part suspects for the five majors on board or within an hours reach. If the tech has to constantly leave the customers equip down then well they will be less likely to hire you again. Another thing you can do while at customers locations is to up sell your services by asking if they might have any other concerns. You might be surprised how many folks have other appliance issues or concerns. I could go all day with this.
13 yr Certified Commercial Beverage Appliance Tech

Offline Rick32k

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Re: Over head
« Reply #10 on: December 16, 2012, 09:20:31 PM »
Please do!

Offline wildimaginations

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Re: Over head
« Reply #11 on: December 17, 2012, 04:46:46 AM »
I had a tech who worked side by side with me.  I taught him how I charge customers on everything.  He thought he could do better by charging a lot less but instead it almost put him out of business until he called me up to ask what he was doing wrong.  I told him to charge more and don't go by the retail price of the part but to double the wholesale cost of the part to the customer.  Let the customer know up front or even over the phone if necessary what it may cost to get it fixed.  That way, you don't waste your time or the customer's time whether they want to spend the money to repair the unit. 



The way I work is this:

Diagnostic Service Call Charge $80.00.  If the customer asks if this charge is blended into the repair, I respond, "No, it is a separate charge for me to disassemble the machine and determine what is wrong with it.  Once I find the problem, then I will prepare an estimate to repair the unit.  It will include parts(if any), labor and the service call charge.  If you decline the estimate, I will put the machine back together and only charge you $80.00."  Even if I walk up to the machine, turn it on and determined the problem within 2 minutes, I still charge $80.00.

Parts.  I always charge double what I paid for the part.  If the part costs me $5, I charge a minimum $40.00 for the part.  If the part costs me $250.00, I will charge the customer $500.00 for the part.  If the customer says that they can get the part for $250.00 online, then I would refuse the job because I won't be able to guarantee the job.  Also, I tell my customers that the sales tax is already included in the price of the part so all of my bids are rounded to the nearest $20.

Labor.  I always give a flat rate estimate for all jobs but I usually base it on $80.00/hr.  So if I can do this job in 1/2 hour, I would charge only $40.00 labor.  If I know this will take me longer than an hour, I usually guesstimate around $80 to $120.00 labor for the job and stick by that.  I won't charge any more unless I find another problem along the way.

If the customer ask how long is the job guaranteed for, I just tell them "Usually 30 days but I want you to call me back even if it's after 30 days if it's the same problem.  I'm here to help."

People sometimes ask why I'm so expensive and I just tell them, "I'm worth it".  I have found that the $80.00 service call is the only way to filter out all of the cheapskates and stingy people.  They're the ones who will go after the "Craigslist" repairman and that's alright by me.  My phone keeps ringing each and every day so I'm either booked solid for a whole week or I'm available for same day service.  There has never been a day where I had nothing to do.  Sometimes, I will even get called out on Thanksgiving but that's because I'm such a nice guy. 
Appliance Service Technician
Authorized servicer on LG appliances.
About 45 mins east of San Francisco

Offline Bailey

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Re: Over head
« Reply #12 on: December 17, 2012, 03:01:21 PM »
I have been in the business in the same town for 33 years, and have seen many repair companies come and go because they thought that they had to be the cheapest to stay in business. That is so untrue. You should have given them the estimate to fix it and if they made the decision to not repair it that is their decision. They then owe you for the service call. You would have made more money then the repair you did. People will take any thing you want to give them and not appreciate it. You need to make a GOOD living if this is going to be your profession. You need to be able to buy a new truck, buy health care, take a vacation. When you work for yourself, you are the only one that can take care of you and your family, so charge a professional wage for professional service.

Offline Rick32k

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Re: Over head
« Reply #13 on: December 18, 2012, 02:13:46 PM »
Thanks a lot guys! If only y'all knew how helpful this forum is.

 

Electrical connection question --Over-head electrical works

Started by willijimon

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Last post March 04, 2009, 12:47:07 PM
by Repair-man