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How Do I Justify My Service Charges
When our 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 continuous study, and the expense of maintaining an adequately equipped staff and office.
As a patient, you pay for the his knowledge, and skill plus a share of his business cost (overhead). Even if he spend only a few minutes with you, his fee could substantial, depending upon his degree of expertise.
This analogy holds true in any service business. The charge for providing services on your premises cannot be determined solely by the time it takes the technicians to make the repairs.
A qualified service organization’s costs begin with salary of the professionals technician. This amount is the same whether the technician
is actually making repairs on the customer premises, traveling to keep service appointments, or participating in training programs to sharpen 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 10@% new profit on the selling price, although seldom realized, would be ideal. Accordingly, if your service charge is $1000.00 dollars, we earn $100.00 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. Service calls that result only in a diagnosis with an estimate for resolving the problem warrants a service charge.