973.676.5802 info@mcwcarpentry.com
973.676.5802 info@mcwcarpentry.com
Facts About Costs
Good Service Doesn’t Just Happen
Operating a dependable service business requires organization, competent management and a substantial capital investment.
When your service charge is more than expected, remember….
You see only the contractor who comes to your home or business.
The quality of their service depends on four things…
- His or her knowledge and skill.
- The necessary people and resources who support the business, business adviser, administrative assistant, engineer and architect support, continuing education and training, trade associations, resource library, wood working shop and various tools and equipment to complete the project.
- Substantial investment in continuing education, wood working tools, shop, office and warehouse facilities, trucks, and equipment.
- Quality control.
Good Service Doesn’t Just Happen
Operating a dependable service business requires organization, competent management and a substantial capital investment.
When your service charge is more than expected, remember….
You see only the contractor who comes to your home or business.
The quality of their service depends on four things…
- His or her knowledge and skill.
- The necessary people and resources who support the business, business adviser, administrative assistant, engineer and architect support, continuing education and training, trade associations, resource library, wood working shop and various tools and equipment to complete the project.
- Substantial investment in continuing education, wood working tools, shop, office and warehouse facilities, trucks, and equipment.
- Quality control.
Insurance – Trucks, Liability, Fire, Theft, Property , Workman’s Compensation
Specialized Training
Periodic Literature Courses & Refreshers
Truck Maintenance & Operation – Gas, Oil, Tires, etc.
Tool Maintenance
Taxes, Income, Property, Business, Social Security, Employment Compensation
Yellow Pages, Advertising & Radio
Trucks (ladders, etc.)
Tools
Warehouse, Shop & Office Rent
Quality Control
Inventory & Wood Moldings
Phone, Light & Heat
Service Management Administration
Office Equipment
Computerization
Business Expense, Legal, Counsel, Recruitment, etc.
Employee Benefits
Office Help
Stationary, Office Supplies, & Postage
Don’t judge service charges solely by the time the contractor spends in your home or business.
When our professional contractor arrives at your door, many costs have already been incurred just to get him or her, 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 continuing education, and the expense of maintaining an adequately equipped staff and office. As a patient, you pay for the doctor’s knowledge and skill, plus share of business costs (overhead). Even if the doctor spends only a few minutes, the fee could range from $50.00 to $150.00 depending upon the degree of expertise.
This analogy holds true in any service business. The charge for providing service in your home cannot be determined solely by the time it takes the contractor to make repairs.
A qualified service organization’s costs begin with the salary of the professional contractor. This amount is the same whether the contractor is actually making repairs on customer premises, traveling to keep service appointments or participating in training programs to sharpen his/her skills.
The cost of doing business (overhead) must also be added to the contractor’s salary. These overhead costs can amount to substantially more than the contactor’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 and we are efficient enough to earn 10% of the $200.00, we earn $20 taxable dollars. We are sure you’ll agree that it’s not excessive for providing top quality services on your premises. All things considered, the cost of a service organization for it’s contractor’s time on the job is the same whether he/she works with tools or not.
Don’t judge service charges solely by the time the contractor spends in your home or business.
When our professional contractor arrives at your door, many costs have already been incurred just to get him or her, 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 continuing education, and the expense of maintaining an adequately equipped staff and office. As a patient, you pay for the doctor’s knowledge and skill, plus share of business costs (overhead). Even if the doctor spends only a few minutes, the fee could range from $50.00 to $150.00 depending upon the degree of expertise.
This analogy holds true in any service business. The charge for providing service in your home cannot be determined solely by the time it takes the contractor to make repairs.
A qualified service organization’s costs begin with the salary of the professional contractor. This amount is the same whether the contractor is actually making repairs on customer premises, traveling to keep service appointments or participating in training programs to sharpen his/her skills.
The cost of doing business (overhead) must also be added to the contractor’s salary. These overhead costs can amount to substantially more than the contactor’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 and we are efficient enough to earn 10% of the $200.00, we earn $20 taxable dollars. We are sure you’ll agree that it’s not excessive for providing top quality services on your premises. All things considered, the cost of a service organization for it’s contractor’s time on the job is the same whether he/she works with tools or not.