This is a fundamental question that affects your bottom line - are you making a profit on the job or not?


Ask this question - would you give an estimate to a customer without knowing the true cost of a part - including any possible courier charges?


The same is true for technicians - it's not only the hourly rate but all the sundry charges as well which include:

  1. Wages (including overtime)
  2. Annual Leave & sick pay
  3. Consumables
    1. Hand cleaner, rags, power, tool repairs etc
  4. Unproductive time


The key to knowing the real cost is knowing your technicians productivity - using time clocking will be a good step in knowing this.


Example:

 

TechnicianSpider ManLuke Cage
Hourly Rates$22.00$42.00
PLUS 8%
 Annual Leave
$1.76$3.36
PLUS 3.3%
 12 Public holidays
$0.73$1.39
PLUS 3%
 Kiwi Saver
$0.66$1.26
PLUS 4%
 Sick Leave
$0.88$1.68
SubTotal$26.03$49.69
Plus 15 %
 Unproductive time
$3.30$6.30
Plus
 Consumables
$1.00$1.00
REAL COST:$30.33$56.99



If 30% unproductive time:

REAL COST:$33.63$63.29
Increase PER HOUR:$3.30$6.30
Increase per 8 hour day:$26.40$50.40





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