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Someone prompted me to post this as it’s how I work out what I’m really being paid per call.
I’ll keep this as simple as I can and it’s an easy enough thing to work out all you need is a calculator and two minutes as well as the average numer of calls you do on the contract in question.
Take the average of fresh calls, in this example 60 calls per week at £35 a call. This will generate a total labour income of £2100, okay.
Right, now how many do you complete on average on the first hit? In most cases for the contract in question for this example it’s 60{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} or less, but we’ll take it as 60{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} which is 36 calls complete and 24 carried over for spares/no-access etc.
So, the following and subsequent weeks you are actually doing the 60 fresh calls per week plus the ones leftover, i.e. the 24, giving a total of 84 calls per week. Still with me?
So, take the actual income, which is £2100, and divide by the total number of calls made and…
Viola!
You are being paid a whole £25 per call in reality, in this case it’s not worth getting out of bed for, you lose on every call made in most repairers businesses so I’d bin it or not take it in the first place, as I am fond of saying…it’s a no-brainer!
Easy to work out, but can be shocking figures.
K.
Re: Here’s how I work it out…
Oh yes we’re with you Ken!
The trick is to improve your completed call on first visit to say around 80{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}. The up-shot of that means a larger stock holding of consumable spares per engineer. Whilst that will appear costly initially, your costs (per call) will come tumbling down.
Also, as you know most suppliers can deliver parts to you next day (hopefully) So better call filtering is required to ensure you have the likely part on the van BEFORE your guy calls on the customer.
I would say that unless you achieve at least 75{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on first visit, you’re going to lose money and you will have to up your labour rates and ditch contract work!
Martin
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