Why service calls cost so much


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Description

When that professional service technician knocks on your door, many costs have been incurred just to get him there, ready to do the job.











  • Insurance- Trucks, Liability, Fire, Theft, Property, Worker¿s Compensation, Drug test, etc.

  • Specialized Training

  • Periodic Lecture Courses & Refreshers

  • Truck Maintenance and Operation ¿ Gas, Oil, Tires, Etc.

  • Test Equipment

  • Taxes, income, property, Business, Social Security, Employment Compensation

  • Yellow Page Advertising, Radio, Television




  • Trucks (ladders, etc.)

  • Tools

  • Warehouse, Shop and Office Rent

  • Quality Control

  • Stock of Replacement Parts

  • Phone, Light, Heat

  • Service Management Administration.

  • Office Equipment

  • Computerization

  • Business Expense ¿ Legal Counsel, Recruitment, etc.

  • Employee Benefits

  • Office Help

  • Stationery, Office Supplies and Postage



Don¿t Judge Service charges solely by the time the technician spends in your home or business.
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 e 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 on going variety of continuing study, and the expense of maintain 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 charge for providing service 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 the salary of the professional technician.  This amount is the same whether the technician is actually making repairs on customer promises, 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 cost can amount to substantially more than the technician¿s salary.


Now comes profit. A 10% net profit on the selling price, although seldom realized, would be ideal.  Accordingly, if your service charge is $200.00, we ear 20 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 calls that result only in a diagnosis and estimate for resolving the problem warrants a service charge.

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