Making Good Money in Your Service Business
To make good money in the service business, your labor must be below 25% of service billings.

An easy way to check this is to multiply the techs hourly rate by 4. Here is an example: Tech gets paid $20.00/Hour x 4 = $80.00 billed per hour. $20.00 is 25% of $80.00. This is their overall hourly average based on the number of hours they get paid for NOT the price you should charge per hour. For recommended flat rate pricing, see the last column in the chart below.

The chart below will tell you what your flat rate should be, based on the techs pay rate and will bring you labor in at 21%.
Tech hourly pay should be 10% of flat rate
or
flat rate should be about 10 x tech hourly rate.

(Based on eight hour day, no overtime)
If you have any questions, please do not hesitate to call me.
 
Thanks for all you do and as always “Expect More From Us”!
 
Thanks,
Bruce Martin
Dealer Business Consultant
Value Added Distributors
(757) 469-1205