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Good Service Doesn't Just Happen |
Operating a dependable service business requires organization, competent management and a substantial capital investment.
When your service charge is more than you expected, remember…
You see only the service technician who comes to your home or business.
The quality of their service depends on three things…
- His knowledge and skill
- The necessary people who train, schedule, route and supply him – telephone operators, dispatchers, training specialists, warehousemen, parts personnel, clerks, administrator.
- Sizable investment in state-of-the-art computerized shop and warehouse facilities, trucks, equipment, tools and replacement parts.
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Some of the costs the technician has to cover |
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| Insurance - Trucks, Liability, Fire, Theft, Property, Workman's Compensation |
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Specialized Training |
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Periodic Courses & Refreshers |
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Truck Maintanence and Operation - Gas, Oil, Tires, etc. |
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Test Equipment |
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| Taxes, Income, Property, Business, Social Security, Employment Compensation |
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Yellow Pages Advertising |
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Trucks |
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Tools |
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Warehouses, Shop and Office Rent |
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| Quality Control |
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Stock of Replacement Parts |
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Phone, Light, Heat |
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Service Management - Administration |
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Office Equipment |
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| Computerization |
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Business Expense - Legal Counsel, Recruitment, etc. |
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Employee Benefits |
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Office Help |
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Stationery, Office Supply and Postage |
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How to better judge the technician's service charges |
When our professional service technician arrives at your door, many costs have already been incurred just to get us and our truck there, ready and able to complete the job.
Without years of training, it would not be possible for a doctor to make a diagnosis and prescribe a remedy. Consider a moment that it isn’t just his initial training, but an ongoing variety of continuing study, and the expense of maintaining an adequately equipped staff and office.
As a patient, you pay for his knowledge and skill plus a share of his business costs (overhead). Even if he spends only a few minutes, his fee could range from $50.00 to $150.00 depending upon his degree of expertise.
This analogy holds true in any service business. The charge for providing service in your home cannot be determined solely by the time it takes the technicians to make the repairs.
A qualified service organization’s costs begin with the salary of the professional technician. This amount is the same whether the technician is actually making repairs on customer premises, traveling to keep service appointments or participating in training programs to sharpen his skills.
The cost of doing business (overhead) must also be added to the technician’s salary. These overhead costs can amount to substantially more that the technician’s salary.
Now comes profit. A 10% net profit on the selling price, although seldom realized, would be ideal. Accordingly, if a service charge is $200.00 and we are efficient enough to earn 10% of the $200.00, we earn 20 taxable dollars, which may be taxed at 45%. We are sure you’ll agree that is not excessive for providing quality services on your premises.
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Provide safety and peace of mind. 
