ECN Forum Forums General Topics of the Trade Business Related Discussion Charging for troubleshooting

Quote"This business forum always amazes me.

Each person is so certain that there way is the only way, the right way, the way to fame and fortune.

Anyone doing it another way is heading toward bankruptcy.

Can't even agree that there is more than one successful business plan."

Its true Bob, there is only one correct and proper business plan. And today I will be practicing it as I am going surfing out at Diamond Head all day instead of work.

Is this Bob stirring the pot?

I think it's Bob being amazed.

You don't agree?

LOL.

Hear Hear....

One thing that I have noticed watching all these posts over the past year or so.

My way is the best, for me, for my type of client, and for my type of business model.

But, these forums have really opened my eyes as to the vastly different approaches that everyone takes to bid their projects or invoice their projects as the case may be.

The trick to it all, to be truely successful, is to understand your true costs, and then model the system that makes the most sense for your business.

"The trick to it all, to be truely successful, is to understand your true costs, and then model the system that makes the most sense for your business."

That about sums it up, cover your overhead, and if your doing that and making a profit , then, whatever your doing is working.

I am glad you all took my post in the spirit it was given.

As I try to always make clear I have never run a business so take what every I say here with the appropriate skepticism.


Cool.

Bob

bob,

glenn and les hit it on the head. That really is the essence of every successful business plan. How you reach that target is up for debate. It also varies by your target market.

For example, if you are a residential service company, who's break even point is $125/hr for an 8 hr day. But you are only able to bill 4 hrs in an average day (the rest is travel, supply house, waiting, etc - that's just the nature of residential service) then you need to bill $250/hr for those four hours. I've yet to meet a residential customer who will agree to a $250 hourly rate, (or a $125/hr including travel rate) However, they do agree to fixed prices (contract, flat rate, estimates, etc) that will cover that $250 hourly rate.

Now, if you are a large commercial company, like the one you work for, you make the bulk of your money on the projects. The fitouts, the groundups, the remodels. So a company will usually do the service for cost, so that they can make it up on the larger projects. In addition, the customers like this will keep men busy year round.

Residential is typically a one shot deal. They won't need you again for 4 yrs on average. You won't get the opportunity to make the money back on the next project.

Commercial/industrial is different. You can be in a facility 10 times/month easily. Then do 2-3 larger projects a year.

But to use the same pricing structure and business model for each is bad. You won't have much luck keeping large commercial/industrial customers if you try to squeeze every penny out of them on every trip. Likewise, you won't make much money in residential if you try to cut them a deal so that you can make it up on the big one. By the time they do the 'big one', 4 yrs have passed and they forgot your name.

does that make sense?

AHHHHHHH!!!!!!

(Bob bangs head against wall repeatedly)

make sure you miss the studs. they hurt....a lot