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  1. #1
    Join Date
    Oct 2001
    Posts
    6,945
    this was out of THE NEWS end of last year,most OEMs are over that $100 easy,lead techs are mid to hi 30s here.
    "when in doubt...jump it out" http://www.youtube.com/watch?v=U1qEZHhJubY

  2. #2
    Join Date
    Feb 2004
    Location
    New Mexico
    Posts
    5,473
    A rule of thumb is often charge rate at 2.5 times base pay. Altough many companys charge out apprentices at full rate once they are on their own.
    Tracers work both ways.

  3. #3
    Join Date
    Jun 2002
    Location
    Bemidji, Mn
    Posts
    3,573
    Ok, who here makes $45 an hour. You suck!
    You picked a fine time to leave me loose wheel...

    http://rapalaguy.spaces.live.com/

  4. #4
    Join Date
    Jun 2005
    Posts
    347
    i make in the 25-29 range 12% but we charge well over the 100 range 5% some thing is wrong with that?

  5. #5
    Join Date
    Feb 2006
    Location
    Lexington, Ky
    Posts
    169
    So you make $29.00 an hour and the company charges over $100.00 an hour and you think this is wrong??

    I wonder if anyone has any idea what it takes to pay a guy $29.00 an hour. I am going to shed some light.

    $29.00 an hr.
    Health benefits ($)per hour.
    2 weeks paid vacation (no income to the company).
    Safety\technical\computer training (expense to company, lost income while in training).
    7.5% of hourly wage to SSI.
    Retirement ($) per hour.
    Company vehicle with tools, not including personal commuting use of said vehicle.
    Workers compensation insurance.
    Liability insurance.
    Uniforms.
    Sick\personal time (expense, no income to company)
    Overhead (I assume that most people like coming to a warm\cool well lit building that has computers and stuff)
    Non-billable time that the company pays the tech for but has no direct income from a customer.
    Do you have an estimator, payroll\accounting person, shop person, etc or do you go home at night and do all this stuff that gets done in a company on your own time?

    Here is an idea for you, next time you think that $100.00 an hour is a lot to charge a customer, look around at your office and realize that everything and everyone you see is paid for out of that $100.00 an hour.

    There is more, but I think I have said enough.

  6. #6
    Join Date
    Oct 2003
    Location
    34.8n 102.4w
    Posts
    3,244

    It would be nice

    To charge out 100 bucks an hour.... we could afford those new trucks, warm shop and more benefits......but alas, our area would quit calling us at that rate.... At 60.00 some people balk....what can you do ?
    Life goes on long after the thrill of living is gone.

  7. #7
    Join Date
    Aug 2000
    Location
    USA
    Posts
    4,987
    2.5 is more like a burdened rate. That includes everything except profit. If your paying your tech $30 per hour your break even cost would be $75 per hour. You throw any profit on there and your hourly rate needs to be $85 an hour minimum or more. Depending on how lean or fat you run your company would determine your actual burden multiplier, however a 2.5 is a realistic number.

    The problem I see with this industry is many of the owners have no idea of what their true costs are. Sadly enough, this drives the hourly rates that we can charge, thus decreasing proffitability throughout the industry. JMHO

    Originally posted by hvacker
    A rule of thumb is often charge rate at 2.5 times base pay. Altough many companys charge out apprentices at full rate once they are on their own.
    Your poor planning does not constitute an emergency on my part!!!!

  8. #8
    Join Date
    Aug 2000
    Location
    USA
    Posts
    4,987

    Re: It would be nice

    You can provide a service thats far superior to the compitition. Perform value added services, etc. The only thing lower pricing does is generate volume.

    Personnaly I would rather see $300,000 a year with a 40% profit netting $120,000 than a $1,000,000 a year with a 15% profit netting $150,000. Volume doesnt nessasarily equal more profitability. JMHO
    Originally posted by sline-dawg
    To charge out 100 bucks an hour.... we could afford those new trucks, warm shop and more benefits......but alas, our area would quit calling us at that rate.... At 60.00 some people balk....what can you do ?
    Your poor planning does not constitute an emergency on my part!!!!

  9. #9
    Join Date
    Jul 2003
    Location
    Orange County N.Y.
    Posts
    1,176
    Originally posted by Chad711
    Ok, who here makes $45 an hour. You suck!
    My package hits that number but I'm in N.Y. mostly working either in or near The City so it really doesn't count just based on the cost of living in the area.

    ...Ron
    Roof Rat

  10. #10
    Join Date
    Nov 2001
    Location
    east kansas
    Posts
    8,024
    Anybody read Chris Reak's book "Tech to Tech"?

    A good book about how make money as a tech.
    Beware of advice given by some guy on the Internet.

  11. #11
    Join Date
    Feb 2006
    Location
    Lexington, Ky
    Posts
    169
    Milk man, where did you get the book?

  12. #12
    Join Date
    Apr 2001
    Location
    Camel City, NC
    Posts
    6,232

    Abs

    I agree and do remember our conversation at the 1st. convention. Tech to Tech is good reading too.
    Be safe not fast. body parts don't grow back

  13. #13
    Originally posted by absrbrtek
    2.5 is more like a burdened rate. That includes everything except profit. If your paying your tech $30 per hour your break even cost would be $75 per hour. You throw any profit on there and your hourly rate needs to be $85 an hour minimum or more. Depending on how lean or fat you run your company would determine your actual burden multiplier, however a 2.5 is a realistic number.

    The problem I see with this industry is many of the owners have no idea of what their true costs are. Sadly enough, this drives the hourly rates that we can charge, thus decreasing proffitability throughout the industry. JMHO

    Originally posted by hvacker
    A rule of thumb is often charge rate at 2.5 times base pay. Altough many companys charge out apprentices at full rate once they are on their own.
    would you add benefits such as the cost of the employee health insurance on top of that 2.5 figure?


    In other words, if you charged 60 an hour you would pay up to $24 to the mechanic. Would you add the cost of medical to that 24 an hour?

    Thanks

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