Forum Discussion
B_O__Plenty
Oct 25, 2014Explorer II
YC 1 wrote:I agree 100% Been there. If you think the rates are too high, open your own shop, charge $35.00 and hour and see if you last more than a month..
OCPH, Overhead cost per hour. Then a calculation to obtain a reasonable profit margin.
The overhead in a service center is horrendous. State Comp, Liability, shipping, parts, tools, training, sick leave, vacation, paid holidays, non-productive overhead (clerks, accountants etc),. Being a service manager and service business owner for 40 years the $120/hour rate is what has to be charged. Quality service people are very talented individuals and it takes years to train them. One of the most stressful jobs is being a service manager. You get it from both ends. I finally walked away from my business last year. the stress was getting to be too much.
For the pleasure of being a Corporation in California the base rate is $800 a year. If you incorporate on Dec 31, you get to pay the $800 again on Jan 1.
I felt I was mostly a tax collector. Sales taxes, employee income taxes, corporate taxes, business license tax, etc. And then there are all the regulations that make you crazy. Try keeping a can of spray paint in a locker. Or have a service tech drive their service vehicle home.
Blood pressure going up. Spent my two cents.
B.O.
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