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  • How do you...

    Charge for the misc. items that you use like teflon, dope, saw blades, drill bits, glue and cleaner, etc?

    I am in the process of trying to figure and hourly rate and don't know if I should figure it into my hourly rate or not. If you think about it how much teflon or dope do you use throughout the year.

    Thanks for your help.

  • #2
    Re: How do you...

    Originally posted by Plumbducky View Post
    Charge for the misc. items that you use like teflon, dope, saw blades, drill bits, glue and cleaner, etc?

    I am in the process of trying to figure and hourly rate and don't know if I should figure it into my hourly rate or not. If you think about it how much teflon or dope do you use throughout the year.

    Thanks for your help.
    I don`t add sundries into my hourly rate they are an extra on top materials and labour and profit.

    Tony

    Comment


    • #3
      Re: How do you...

      Originally posted by Plumbducky View Post
      Charge for the misc. items that you use like teflon, dope, saw blades, drill bits, glue and cleaner, etc?

      I am in the process of trying to figure and hourly rate and don't know if I should figure it into my hourly rate or not. If you think about it how much teflon or dope do you use throughout the year.

      Thanks for your help.
      I don't charge an hourly rate, I charge a flat rate. ALL charges are built into the flat rate price.

      Comment


      • #4
        Re: How do you...

        It is just part of my hourly rate. Dope and tape are the cheapest thing on the truck.

        G3

        Comment


        • #5
          Re: How do you...

          Blades, bits, tapes, glues are material costs and do not get worked into my hourly rate.

          The cost of the tool that uses the consumable material is part of the hourly rate along with tool maintenance.

          Bill

          Comment


          • #6
            Re: How do you...

            If You want to do this check with auto Mechs. They all have a formula for shop rags ect.
            I can build anything You want , if you draw a picture of it , on the back of a big enough check .

            Comment


            • #7
              Re: How do you...

              I always thought that was a rip off................


              shop supplies....................$50.00


              To me it looks better to have a little higher per hour rate than breaking it out on an invoice. If you start breaking out the little things people complain more, saying it doesn't cost that at home cheapo. I use to work as an estimator/office manager for another company and was told to charge for truck usage, so I figured $5 per hour that the truck was on the job which also included all tools. Customers really started to ***** about it so I just increased the per hour rate to compensate for it and all was well again. Customers see this as an add on to the invoice for what should have been included to start with. Now if they want a breakdown of the hourly rate you can show them what all plays into that.

              G3

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              • #8
                Re: How do you...

                i consider items like tape, putty, caulk, razors, etc are part of CODB. it's factored into my Service Call Fee. they are the necessary intangible that just don't get itemized in the billing

                steve
                In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

                Comment


                • #9
                  Re: How do you...

                  If you really want to know, figure out how much you spent on said supplies last year and figure what percentage of your total expenditures it was and increase your hourly figure by that percentage.

                  I'm not a bookeeper, that's my partners job, but I think I've got that right.
                  www.ClinkscalesSeptic.com

                  Comment


                  • #10
                    Re: How do you...

                    I figured that it would just be factored into my hourly rate, just because customers will complain that they are being nickel and dimed if it is put on the invoice.

                    I do realize that those items are just part of the CODB. Thanks for the help.

                    Comment


                    • #11
                      Re: How do you...



                      i figure appox. 5-10 % of my total materials list :d
                      JERRYMAC
                      E-MAILJERRYMAC777@GMAIL.COM
                      CALIF. LIC. PLBG,HEAT,DRAINS,ELECTRIC,WATER HEATER, BOILER, POOL AND SPA HEATER
                      FIRE SPRINKLER CONTRACTOR,
                      SINCE JAN. 1989

                      Comment


                      • #12
                        Re: How do you...

                        I show them as a line item. If questioned, I can supply used blades and empty tape rolls. But, I'm never questioned.
                        How about the MSDS charge we receive every time we exchange a tank of gas? They don't even bother to give me the MSDS sheet, just the bill for it. It ticks me off, since I read and understood it the first time I received it. I bet I pay for it 10to 20 times a year.

                        Comment


                        • #13
                          Re: How do you...

                          >> "If You want to do this check with auto Mechs. They all have a formula for shop rags ect."

                          When I had the engine machine shop, the hourly shop rate was established by looking at the bottom line burn rate for the biz. This included everything - supplies, utilities, vehicles expense, hazardous materials disposal, welding gases, tungstens and rod, employee total cost, credit card merchant fees...even scrappage costs and warranty expense. Absolutely everything. Then the margin was added. I think most auto shops do the same thing.

                          We had fixed prices for some services, because that's what the customers wanted to see. The fixed prices always worked out to charge the Customer a little more than if they paid hourly.... 'cause you have to charge for contingency - that is, sometimes things don't go well and take longer than they should, an emplyee will screw something up, or use up more consumables. Fixed prices have to account for that - after all, it's a business, not a benevolent society... you gotta turn a profit.

                          But I didn't charge a separate line item for consumables, "disposal fees" or any of those other things that some places do. The customers didn't like it. The shop rate, on the other hand, was posted on the wall. No mystery, no arguments.
                          Last edited by Andy_M; 10-11-2009, 11:37 AM.

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                          • #14
                            Re: How do you...

                            I agree with G3sprinklers. I used to charge it out as hazmat materials and it was a small charge most cases $5-10.00 per call, the problem was customers wanted to know what they were paying for and most thought it was just a way to charge more. If you think about all the little things you buy and don't charge for it really adds up. Sawblades, snakes, drill bits, shop rags, degreasers, primer, hand soap, the time it takes to buy and stock all this stuff, Etc... someone has to pay for it and why should it be me ?
                            I have found that just charging a little more per hour or however you want to do it will go alot easier with the customer when it comes time to go over the bill. The customer is going to think the bill is too high already why add gas to the fire ?

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                            • #15
                              Re: How do you...

                              Thanks all for the input, all of it is pretty much what I figured.

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