- Description
- Specifications
This paper analyses the steps that should be taken by a trades person in determining charge out rates for employees and the owner/manager of the business so as to achieve a targeted profitability figure. The paper highlights the necessity for the implementation of time recording systems and the measurement of employee productivity on a weekly basis.
The paper is suitable for Carpenters, Electricians, Plumbers, Roof Fixers, Drainers, Painters, Panel Beaters, Spray Painters, Auto Electricians, Equipment Repairs, Computer Repairs and Maintenance. The paper considers a number of matters including:
- Setting Charge Out Rates Is A Difficult Step
- Charge Out Rates Can Determine Profit Or Loss
- Charge Out Rate Fallacies
- What Is Your Customer's Cost?
- Why Do Your Customers Buy?
- Competitions' Intelligence Files
- Customer's Decision Process
- Understand Customers' Perception On Pricing
- What Are The Business' Overheads?
- Customer's Perception On Prices Service And Response Time Is Important In Establishing A "Premium" Charge Out Rate
- Differentiate Your Business
- Material Mark Up Percentage
- Sub Contract Mark Up Percentage
- Labour Classification
- Employee Productivity
- Targeted Net Profit
- Labour Oncosts
- Calculation Of Required Labour Charge Out Rates
- Key Performance Indicators To Be Monitored