tech fees

[Wimblees]

In a message dated 98-03-27 19:55:30 EST, you write:

>Yes, it can get complicated, but I still wouldn't blow it off and go
>with a flat rate for everything.  I assumed that you fine tuned your
>fees when you referred to travel as a variable - meaning if you have to
>travel a lot farther than your average distance, that requires charging
>a higher tuning fee.....or did I misunderstand.

A customer pays more to have a piano tuned when there is travel involved that
is more than what I have established as "my territory", but not a higher fee
for the tuning. I charge the same for the tuning, but then extra for traveling
the extra distance ($1 per mile one way). 

>The concerns you raise about shop overhead are addressed be considering
>both fixed costs and variable costs.  This necessarily applies to travel
>as well, of course.  The best way to figure your future fees is to break
>down your past sources of income and their associated costs. 

The fixed costs are taken into consideration when setting the fees. By the
variables I mean the parts and supplies used. Those the customer pays for,
over and above my labor fee. 

> Maybe even think of them as separate businesses.  If you sell or rent
>pianos, for example, you would certainly want to do a separate P/L
>analysis.

Obviously my sales and rental business generate its own income, but then they
have their own expenses. There is an entrily different approach to this
business then there is in the service business. 

As I have said before, even if you are working out of your house, with no
overhead other than the expense of the car, telephone and some advertising,
these costs are there whether you work in the customer's home, or fixing an
action on the kitchen table. But there is one other "fixed" expense when
figuring your "service" rate. One of the "expenses" of your business is the
profit you make. The profit is what is left over after all the business
expenses are paid. The profit is used to make all the other "fixed" and
variable expenses associated with running a home. The mortgage, the electric
bill, the cost of food and clothing, these all have to be paid from the profit
you make. And these bills also have to be paid, whether you work in a
customer's home, or in your shop. So you see, no matter how you look at it, if
you don't pay yourself the same for ALL the work you do, you will cheat
yourself out of income. 

Take Dale Probst's class at the convention, or Vivian Brook's or my class on
this subject when it is offred at a seminar. When figuring how much to charge,
be sure to include all your expenses, including your "profit", when setting
your hourly rate. And then be sure you charge that rate for everything you do.

Willem Blees