Contract Rates

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From the minutes;

Contract Rates

It was generally agreed that £35 was the absolute minimum payment per call in the industry today. However, in some cases this can be offset by higher rates on insurance and charge work to offset a lower in-warranty rate.

Much of the call fees, in some cases but not all, are being eaten up by some work providers.

A discussion and an explanation of how manufacturers calculate warranty call costings was given by Mark Scoggins.

It was agreed that a standard minimum call rate was a good idea and building in an inflationary rise was also desirable.

Huge variations in rates was discovered and discussed even with the same manufacturer or work provider to agents in different areas.

Discussions were held on setting up a national contact number to be routed to UKW members. This is to be discussed further on the site and at later meetings.

Minimum cost to call (get an engineer to a customer’s home) was £21 but the average was £25-27 which when coupled with low first fix rates makes many contracts unworkable an non-profit making. It was agreed that we should be aiming, like most businesses, to achieve a 15-20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} overall profit margin.

In this discussion it also emerged that one manufacturer was using a premium rate number to provide technical assistance to the trade, this was agreed to be an unacceptable practise.

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