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:
- Wages (including overtime)
- Annual Leave & sick pay
- Consumables
- Hand cleaner, rags, power, tool repairs etc
- 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:
| Technician | Spider Man | Luke 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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