Rookie in need of some business advice

[GatesAudio 0]

Hello,

 

I found this site by trying different Google searches. Needless to say, I like the site and I look forward to learning a lot here. I left the cable industry a couple years ago because the pay was horrible as a triple play tech. I started my own business custom A/V home theater,CCTV etc. I have done very well and built a good name for my self. I have a guy who sends me work for KFC, WENDYS, TACO BELL, PIZZA and I install & service the central FL area from Orlando to Tampa. I get to build a trip charge for $50 and get $40hr to service. I also picked up Pilot truck stops and Flying J's as well and these jobs pay $50 per hr. for trip plus $40hr for labor. Now this is were I'm seeking advice from any and everyone willing to share. I just acquired a new company, Black Cat Scale. Since there is no middle man eating off my plate so to say... How much should I charge a commercial company like this? I have no clue and do not want to submit a invoice to low or to high. I usually charge $60hr when I work local and on residential homes etc. I remember my conversation very clearly and he insured me not to worry about the pay... They don't play those types of games! lol it made me feel more comfortable. My job is to find out why the camera down and they just replaced the screen inside. So they sent me a new housing and box cam that I replaced. Come to find out, the breaker is still tripping and caused because they tied the power into the scale station sump pump under the scale. So now I will be going back and accessing under this and replacing the pump.

 

I hope I supplied enough information for a ballpark replay lol. I forgot to add that this job is 2hrs away so I get to bill 4hr trip and the camera is about 15-20 foot off ground.

Thanks again, Greg

[rory 0]

I normally charge businesses more, not the first trip though, gotta get them hooked. I charge more because in most cases they want to pay by check and that means 1 hour in line cashing it. Dont have the drive here like you do, 21 miles by 7 mile island, but can be sitting in traffic for 1 hour and the roads are awful so the vehicle needs extra maintenance.

 

Anyway I dont charge a trip charge per say, i normally charge $75 per hour, if its a business I normally charge an initial $150, sometimes $125, or $100, depends how close it is and what it entails - eg. working in a room infested with attacking flying ****roaches will cost more, 50 foot on top of an unstable fork lift under a metal roof in the summer, costs more, if I get called to a club at 4am to backup murder footage, cost skyrockets.

 

Thats here though ... things a little different in the US.

[fa chris 0]

Figure out your burden rate, and add at least 50%.

 

Calculate the cost to employee yourself. Vehicle, vehicle maintenance, what you pay yourself, tools, insurance, bank fees, license fees, etc. all of the expenses related to your business. Then divide it by how many hours a year you work (40 hours a week). That's your burden rate, it's everything it costs to employee you.

 

If this comes out at or below $50 for some reason, then charge closer to $75 for scheduled work with companies you have T&M agreements with, ~$100 for emergency call-outs, and ~$125 for after hours. These rates will fluctuate with your area... in NYC it'd be more, in rural Alabama it'd be a lot less.

 

Then tack on materials if there are any.

 

Would also have a minimum charge of 2-4 hours to cover trip.

 

Also, do some recon and see what others in your area are charging so you can stay competitive.