430: Listener Email - Dealing with Cheap Clients
Service Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Release Date: 01/08/2020
Service Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast! Visit our website for more episodes and insights! www.servicebusinessmastery.com In this episode, we're excited to welcome #CraigChildress, Master plumber at #BostonUniversity, a global leader in building technology and solutions. 🏢 In this episode, here's what you can expect to learn: The importance of continuous learning and skill development in trade professions Discover tips and strategies for succeeding in trade competitions Explore the skills and dedication of technicians in plumbing, HVAC, and other fields. The...
info_outline AI Transforming Trades Tap Into Tomorrow with Amanda Triolo & Bri SkiffingtonService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast! Visit our website for more episodes and insights! In this episode, we're thrilled to welcome #AmandaTriolo and #BriannaSkiffington, Co-founders of #CxC, a pioneering company in AI-powered contracting solutions. 🚀 In this episode, here's what you can expect to learn: The importance of building a company culture centered around transparency, trust, and growth. The process of developing CXC into an AI tool to streamline customer interactions. Strategies for simplifying bureaucratic processes and paperwork. The importance of...
info_outline Exploring Cutting-Edge Technology in Residential Energy Efficiency with Shelby BregerService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast! Visit our website for more episodes and insights! In this episode, we're thrilled to welcome Shelby Breger, Co-Founder of Conduit Tech, recognized as a thought leader in the HVAC technology space.💡 In this episode, here's what you can expect to learn: 1. The importance of feedback in software development and continuous improvement. 2. Challenges and considerations in sharing load calculations with clients. 3. How LiDAR technology facilitates quick and accurate load calculations. 4. Considerations for energy efficiency and equipment...
info_outline Understanding HVAC Regulations with Chris ForthService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline How Looking Inward Is The Key To Unlocking Entrepreneurial Freedom With Rob DubeService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline Driving Marketing Success and Customer Retention Strategies with Billy StevensService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline AI or Authentic? Pierce Birkhold's Tech-Savvy Insights!Service Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline Insider Knowledge For Optimizing HVAC Efficiency With Lilah JonesService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline How To Enhance HVAC Operations With Stronger Strategies & Faster Results With Mary KellyService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outline Transforming Challenges into Opportunities for Women in HVACR With Amberley SnyderService Business Mastery for Skilled Trades: Unlocking HVAC, Plumbing & Electrical Success
Welcome to the Service Business Mastery Podcast!
info_outlineOn 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 [email protected] 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.