Do you ever wonder why a plumber charges a service charge?
When a professional service technician arrives at your door, many costs have already been incurred just to get the technician and our service truck there, ready and able to complete the job.
Without years of training, it would not be possible for a doctor to make a diagnosis and prescribe a remedy. Consider for a moment that it isn’t just his initial training, but an ongoing variety of continuing study, and the expense of maintaining an adequately equipped staff and office.
As a patient, you pay for his knowledge and skill plus a share of his business costs (overhead). Even if he spends only a few minutes with you, his fee could range from $50.00 to $150.00 depending upon his degree of expertise.
This analogy holds true in any service business. The service charge for providing service on your premises cannot be determined solely by the time it takes the technician to make the repairs.
A qualified service organization’s costs begin with the salary of the professional technician. This amount is the same whether the technician is actually making repairs on customer premises, traveling to keep service appointments, or participating in training programs to sharpen his skills.
The cost of doing business (overhead) must also be added to the technician’s salary. These overhead costs can amount to substantially more than the technician’s salary.
Now comes profit. A 15% net profit on the selling price, although seldom realized, would be ideal. Accordingly, if your plumbing costs are $200.00 and we are efficient enough to earn 15% of the $200.00, we earn $30.00 taxable dollars. We are sure you’ll agree that is not excessive for providing top quality services on your premises.
All things considered, the cost to a service organization for its service technician’s time on the job is the same whether he works with tools or not. A service call that results only in a diagnosis and estimate for resolving the problem warrants a service charge.
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