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430: Listener Email - Dealing with Cheap Clients

Service Business Mastery - Business Tips and Strategies for the Service Industry

Release Date: 01/08/2020

437 Does Emerson Solve The Tech Shortage Crisis? show art 437 Does Emerson Solve The Tech Shortage Crisis?

Service Business Mastery - Business Tips and Strategies for the Service Industry

Tersh talks with Brian Feenie on the Service Business Mastery Podcast about the Emerson product called the Sensi-Predict. This product is on pace to revolutionize the HVAC industry! It's not something that is new and unheard of, but it's new to the residential side of things. Listen to today's episode to learn how this adaptive technology is changing our lives for the better!  Reach out to Tersh, to learn more about this product, on social media @tershblissett most everywhere or email him   Learn more about the CRM that is taking over the industry by storm! Check out where I was...

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436: Add Value to Your HVAC System with an Extended Labor Warranty show art 436: Add Value to Your HVAC System with an Extended Labor Warranty

Service Business Mastery - Business Tips and Strategies for the Service Industry

Tersh talks with Don from JB Warranties about how we, as the service provider, can add extra value to our clients while also making money in the deal!! Plus, you get to keep that client for the life of the equipment rather than it just being a quick transaction when they purchase an HVAC system from you.  This episode is recorded live from the AHRexpo in Orlando FL 2020.    Connect with JB Warranties    Check out ThermoGRID   Connect with Tersh on social media @tershblissett most everywhere! 

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435: Providing Your Team A Safer Workplace with Spyder Products show art 435: Providing Your Team A Safer Workplace with Spyder Products

Service Business Mastery - Business Tips and Strategies for the Service Industry

Reach out to the Spyder Products team at www.spyderproducts.com or email them at dave.mcclure@spyderproducts.com or david.swisher@spyderproducts.com 

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434: My Website & SEO Review part 2 show art 434: My Website & SEO Review part 2

Service Business Mastery - Business Tips and Strategies for the Service Industry

Tersh talks with Stephen Christopher from Wit Digital a few months after last week's episode about his website and the progress Wit Digital has made with fixing the issues related to what the previous company did when building the website.  They also talk about the difference in relationships between a good SEO/Marketing company and an AMAZING one!  Connect with Stephen  Tersh @tershblissett on almost every social platform   ~Our podcast sponsor is  click the link to check it out!  ~How about we are listed as one of the top business...

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433: My Website Review w Stephen Christopher from Wit Digital part 1 show art 433: My Website Review w Stephen Christopher from Wit Digital part 1

Service Business Mastery - Business Tips and Strategies for the Service Industry

Tersh talks with Stephen Christopher from Wit Digital about his website, and the things Wit Digital has done with it so far to fix the issues related to what the previous company did when building the website.  Connect with Stephen  Tersh @tershblissett on almost every social platform   ~Our podcast sponsor is  click the link to check it out!  ~How about we are listed as one of the top business podcasts in the world!  

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432: How to Win Forever Clients with Ugly Mug Marketing's Wayne Mullins show art 432: How to Win Forever Clients with Ugly Mug Marketing's Wayne Mullins

Service Business Mastery - Business Tips and Strategies for the Service Industry

https://thermogrid.org/demo

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431: 5 Levers You Can Use to Shred Weight Even As A Busy Business Owner! show art 431: 5 Levers You Can Use to Shred Weight Even As A Busy Business Owner!

Service Business Mastery - Business Tips and Strategies for the Service Industry

www.metpro.co/SBM <~ go here for a free 30 call from today's show!

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430: Listener Email - Dealing with Cheap Clients show art 430: Listener Email - Dealing with Cheap Clients

Service Business Mastery - Business Tips and Strategies for the Service Industry

Connect with us on social media @tershblissett & @julieablissett Tersh@icebound.us if you'd prefer to email

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429: Who Would Know What We Want in a CRM More Than Someone Who Has Been in the Trenches Too? show art 429: Who Would Know What We Want in a CRM More Than Someone Who Has Been in the Trenches Too?

Service Business Mastery - Business Tips and Strategies for the Service Industry

https://thermogrid.org/demo

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428: Growing leaders using the F.A.R.M. strategy show art 428: Growing leaders using the F.A.R.M. strategy

Service Business Mastery - Business Tips and Strategies for the Service Industry

Today’s guest is Zach Thomas. He is an entrepreneur, published author, coach, and speaker. As a West Point graduate, Zach served his country as an Airborne Ranger Infantry Officer before launching multiple successful companies. Today, Zach is the owner/operator of a Chick-fil-A franchise in Rockmart, Georgia. His Leader Farming strategy - Growing Leaders to Grow your Business - has resulted in the top 20% performance metrics and the development of multiple Chick-fil-A franchisees from his restaurant. A self-proclaimed “Lean 6 Ninja,” Zach has cultivated a culture of continuous...

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On today's episode, we talk PERCEIVED VALUE vs INVOICE PRICE! We had a listener email us recently, and they asked for advice on how to handle a client who was giving them a fit about a price that they feel was extremely fair...if not, a little lower than standard for the HVAC industry. This service business owner would like to know what we would do if we were put in a similar situation with our heating and air conditioning small business.

Julie and Tersh talk between the two of them about ways to add value so that these types of calls are less likely to happen! Please share your thoughts and feedback with us! 

Also, connect with us on social media @tershblissett & @julieablissett Tersh@icebound.us if you'd prefer to email!

Click here for an explanation of how to figure out your billable hour for those who may be questioning themselves on the price they are giving their clients. 

Of course, to get a true picture of your business expenses, you'll want to calculate your overhead rate or direct service overhead. This is true whether you're a manufacturing firm or whether you are applying overhead in a service company. To do so, divide your overhead (indirect) costs, such as rent and utilities, by direct costs, such as labor. If your overhead costs are $100,000 and direct costs are $50,000, your overhead rate is 0.50, or 50 percent. If the typical overhead rate for companies in your industry is 75 percent, and your rate is 50 percent, you have a competitive advantage with your lower overhead.

But when calculating your overhead rate, keep these important factors in mind:

  • Materials cost. These are the costs of goods you use in providing the service. A mechanic's shop, for example, would need to factor in the costs of supplies, like engine oil, air filters, tools (though mechanics at a shop usually provide their own tools), spark plugs, brake pads, etc.
  • Labor cost. This is the cost of direct labor you hire to provide a service. As discussed, this would including the hourly wages or salary of the mechanics at the auto business, for example.
  • Overhead costs. These are the indirect costs to your business in providing services to customers and is different than the overall overhead rate. This would include the costs of any employees/support staff not working directly on the autos, such as billing clerks or administrative assistants and even human resources personnel if the firm is large enough. Other overhead costs include your monthly rent, taxes, insurance, depreciation, advertising, office supplies, utilities, mileage, and so on.