Actual Cost

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  • #15023
    kwatt
    Keymaster

    We were thinking…

    Now I know that’s probably dangerous but we have a plan. We were thinking about a little project that we dreamt up for ourselves (as we do) to indicate the state of the repair industry.

    Obviously we want to use that to your advantage.

    It involves a bit of work really, donkey work to be honest, but not too much and it could prove an eye-opener for you as much as us. What we want to do is to produce an average “cost to call” figure across the UK.

    Then, when we have collected manufactuers, insurers and WP’s all in one room in February we want to… well not beat them about the head with is, but beat them about the head with it.

    Of course we also have other (very shocking) statistics already pretty much in the bag as well to offer a very nice wake-up-call, not that we would try to sandbag anyone of course as we’re really not like that, no really stop laughing, we’re not.

    All the info would come to me, it is totally confidential and will only be used to produce an average by region and nationally. If enough of you take part this could really be a very useful tool to fight our corner and should produce some very useful info that you guys can use to your own advantage as well.

    Kev and I will rattle up a spreadsheet for download, all you’ll have to do is fill in the blanks and give me the end figure. We’re not interested in how that’s arrived at so long as you’re honest about it and that’s why we chose the subs forum, as we know we can pretty much trust the result and the people here’s ability to do it.

    So, the question hangs in the air, anyone want to go hunting? 😉

    K.

    #161705
    BobHope
    Participant

    Re: Actual Cost

    count me in K. 😀
    Bob.

    #161706
    admin
    Keymaster

    Re: Actual Cost

    These days Work Providers are looking to fix their costs, they work to a cost per job, just as we do. In their case it’s in their interest to keep the labour to a minimum, quite often at our expense.
    You have no doubt heard the rumour that Kenwood/Elba are paying CDSL £57.00+ vat per call, in which case that equates to a 39{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} admin fee on your labours! It’s not so long ago that Nesn were on 23{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} admin fee for the work they administered for Mastercare.

    In December we became aware of a manufacturer and an insurance work provider, both seeking help with the setting up of networks, using individual businesses therefore cutting out the “admin fee”. Whilst we were approached by both parties we feel we should take advantage of the number of Manufacturers/Work Providers and Insurance companies we will have at our meeting. After all you would want a share of the “saved” admin fee, wouldn’t you?

    What we want to do is show our audience is, that as independents we are aware of our costs, that we understand that a lower BER rate is ripping us off, that profitability is joined at the hip with 1st time completion. It’s time we put pressure the other way, it’s time the lowest contract paid £40.00 as a minimum, it’s time we helped each other achieve more for ourselves.

    I was speaking to a bricklayer a week ago, who earns £600 a week, for working in one place! As a new van pulled up, he remarked ” this’ll be the joiner, they always have new vans!” Quite, take a look at the vehicles our guests arrive in……

    Kevin

    #161707
    Dales-Electronic
    Moderator

    Re: Actual Cost

    Oh yes put me down for this one – I have an awful feeling that this exercise is going to frighten Me half to death.

    #161708
    Martin
    Participant

    Re: Actual Cost

    kheath wrote:that we understand that a lower BER rate is ripping us off, that profitability is joined at the hip with 1st time completion. It’s time we put pressure the other way, it’s time the lowest contract paid £40.00 as a minimum, it’s time we helped each other achieve more for ourselves.

    I would be an interesting exercise to establish national and even regional ‘per job’ costings I agree. But you have to be so very careful what you actually do with that information once it’s collated.

    The idea of getting a handful of manufacturers, insurance agents and pin-stripped suited wp’s in one room and springing that fact one them is not the way to go about it though. Besides they are all too aware of the increasing costs that everyone is forcefully subjected to by an ever spiralling downturn in the High Street price of whitegoods.

    Those ‘admin costs’ they work to will never be compromised as well you know. Their continued pressure put upon each and everyone for 1st time completion and an ever lowering BER rate will only get worse. Spouting facts about the agents costs will only antagonise them further and possibly even promote a greater ‘divide’. Besides, as it stands, you can only use this information to adopt a “please sir, I want some more” approach at best!

    kheath wrote:In December we became aware of a manufacturer and an insurance work provider, both seeking help with the setting up of networks, using individual businesses therefore cutting out the “admin fee”.

    Now this on the other hand is the only real solution to the problem, by approaching manufactureres and insurance companies directly. As indeed the likes of Connect did not so very long ago and they created CDSL virtually overnight to become a giant in the business that we all now seem to regret for some reason (I wonder why?).

    We have simply to ‘cut out the middle man’ as the one and only solution to our problem. The big problem with that as I see it, is that UKW by accident or design has alienated and embarrassed these manufacturers over the last 3 years by all the traffic that has passed its many forums and topics. I find it difficult to imagine we could kiss and make up to them? Whirlpool for example have been put through the UKW wringer big time in that time so I can’t see them coming round to that idea?

    Finally, please consider those businesses that would really not want you to rattle too many cages for them. They are ‘keeping their heads down’ and working the system thank you very much. They will be less than pleased to find wp’s imposing greater sanctions on them at this moment in time.

    SOFTLY SOFTLY ! 😉

    #161709
    kwatt
    Keymaster

    Re: Actual Cost

    You’re missing one very important fact here Martin and that is that, at the moment, we’re using a few figures from ourselves that we can muster. If we broaden the scope of that and can PROVE what a call costs then at least we have a fighting chance.

    Just saying it doesn’t pay without cause, reason and, most importantly prove just gets nowhere. But if we have that then we can at least have a reasoned discussion based in factual figures that weren’t just “plucked from the sky” as many people see it.

    We talk to a lot of manufacturers, insurers, and WP’s, including many that have had some stick on here and they are sympathetic to our plights, but they don’t have any prove of them, we intend to demonstrate why we need to be paid more and why, if they don’t, they won’t have a repair industry to be sympathetic towards any longer.

    This isn’t about attacking any one or two people in a room, this is about survival and being able to hit home with facts to back us all up.

    As for them keeping their heads down, fine, no problem. We’ll all move on and they’ll be left behind, too bad.

    K.

    #161710
    admin
    Keymaster

    Re: Actual Cost

    Martin wrote:“The idea of getting a handful of manufacturers, insurance agents and pin-stripped suited wp’s in one room and springing that fact one them is not the way to go about it though. Besides they are all too aware of the increasing costs that everyone is forcefully subjected to by an ever spiralling downturn in the High Street price of whitegoods.

    Those ‘admin costs’ they work to will never be compromised as well you know. Their continued pressure put upon each and everyone for 1st time completion and an ever lowering BER rate will only get worse. Spouting facts about the agents costs will only antagonise them further and possibly even promote a greater ‘divide’. Besides, as it stands, you can only use this information to adopt a “please sir, I want some more” approach at best! “

    What a load of rubbish Martin……your so wrong, it’s exactly the attitude they rely on to keep the status quo.

    Martin wrote:” Finally, please consider those businesses that would really not want you to rattle too many cages for them. They are ‘keeping their heads down’ and working the system thank you very much. They will be less than pleased to find wp’s imposing greater sanctions on them at this moment in time.”

    Re read the 1st post Martin, all info is confidential, that means we won’t tell ANYONE where we got the facts and figures from.


    Kevin

    #161711
    Martin
    Participant

    Re: Actual Cost

    kheath wrote:What a load of rubbish Martin……your so wrong

    I sincerely hope you’re right and I am wrong Kevin for your sake and all who are dependant on this type of work. I’m not in that position as well you know but all I ask is that you take note of my concerns and comments, especially the bit about about cutting out the middleman.

    The well is running dry my friend and it’s time to drill another borehole 😉 😉

    #161712
    eastlmark
    Moderator

    Re: Actual Cost

    Will the low costs of the one man bands, working form home here not give a unrealistic low average cost that may make the mutli engineer outfits, also here, appear rather overpriced?

    #161713
    kwatt
    Keymaster

    No Mark, I think you’ll get a surprise TBH as it’s not so cheap, even for “man & van” businesses. Many just don’t know it that’s all.

    K.

    #161714
    kwatt
    Keymaster

    Re: Actual Cost

    Just a thought here folks, but about this malarky with ServiceNet, AIS and rumours surrounding other networks and their “not so rosy” financial positions.

    You have to wonder why? Well, if you’re not wondering then you should be IMO.

    These are professional costed businesses and they have failed, or could fail, just due to the ebb and flow as well as the downturn in work or in financial rewards on offer. Two that spring to mind (without naming names) have tried to move into other product areas but I’m afraid it’s been too little, too late as they didn’t see the writing on the wall. Do we really want to be as ignorant of our own position financially?

    We wouldn’t sell a washer if we didn’t know what it was costing us, we don’t just guess at it. Likewise with spare parts.

    So tell me, why should the service that we provide be any different to those goods?

    Without knowing what our costs are I’m afraid that, like others before us, we may well not survive long enough to be grumbling about it.

    And yes, I’m well aware that that’s a very pessimistic view but the last thing I want to see is anyone underselling themselves and given the figures that we’re getting there’s been many, many businesses over the past 18 months that have failed in this game, most likely for several reasons, but I suspect many for simply doing the job too cheaply.

    K.

    #161715
    kwatt
    Keymaster

    Re: Actual Cost

    As promised here’s the calculation. All you need to do is fill in your costs and see what comes out, there’s a good example there to let you see typical costs.

    Download the spreadsheet template from HERE

    I’m sure that some will get a surprise for a kick off but it gets worse than what’s here once you factor in completion rates, BER rates and a few other bits and bobs. But more on that after we get some responses to this.

    What I will say is that with this we should be able to put forward a very strong case for us to be paid more. Whether we succeed or not is really not relevant, at least we’re getting off our asses and doing something to try and improve things.

    K.

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