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<DIV>Here is a standard benchmark that anyone can use. It is based on a
technician with plenty of work, working in an ideal situation. While
everybody's individual circumstances vary, use this as the standard to
which everything else can be based. This is the starting point and by
following it, you can stay profitable no matter where you are or how much you
work. It can be adapted/modified to fit anyone...anywhere and includes
a cross check to keep shop work prices in harmony with tuning work.</DIV>
<DIV> </DIV>
<DIV>Pricing is a delicate situation that nobody seems to want to talk
about. It's my understanding that people in the PTG got accused
of price fixing years ago and now nobody will discuss it.
Therefore, this is my opinion and I am solely responsible for
it. </DIV>
<DIV> </DIV>
<UL>
<LI>You can tune about 1,000 pianos per year. [4 pianos/day x 5
days/week = 20 tunings/week] [20 tunings/week x 50 weeks/year = 1,000
tunings/year]. This gives you a job with straight days, no
weekends, and a 2 week vacation. </LI>
<LI>Based upon the above scenario, you can schedule 4 tunings/day...2 hours
apart. You will spent 1.5 hours doing the tuning, and 30 minutes
traveling to the next appointment. Typically you will tune
from 8-10 and 10-12. Lunch is from 12-1. You
will tune from 1-3 and from 3-5. Go home after that and have a
life.</LI>
<LI>Your hourly rate should be based upon the 2 hour tuning, not the 1.5
hour tuning. For example, if you charge $60/ tune, then your hourly rate
is $30. If you charge $80 tune, then your hourly rate is $40, and so
forth. This allows you to keep your tuning prices in agreement with your
shopwork. Don't forget to charge for parts.</LI>
<LI>Your price needs to be based more upon your budget and needs instead
of the 'market rate' or what the competition is charging. You need
to factor in costs such as insurance, retirement, self employment tax, the 2
weeks vacation and everything else that a job with benefits would have.
Insurance includes auto, health, life, workers comp...that's right, workers
comp, and business liability. Too many people call around and go with
the going rate and underprice themselves instead of correctly charging their
annual budget plus benefits. <STRONG><EM><U>If you cannot pay for those
coverages with what you are charging, then you are too
low.</U></EM></STRONG></LI>
<LI>The price of your tuning, mulitplied by 1000 will equal your annual
income. If you are charging $60/tune then you should be making about
$60,000/year. If you are in the $60K bracket (but after reading the
post above) realize that you need to be in the $80K bracket to pay your
bills, taxes and benefits, then you should charge $80/tune instead of
$60/tune. A typical benefits package costs about $20,000/year.
</LI>
<LI>From the day you start your business, if, in 5 years, you are
not tuning 1,000 pianos a year, then you are either in the wrong business
or the wrong location. If you charge $75/tuning, then in 5 years,
if you are not earning $75,000/year, then you are either in the wrong location
or the wrong business. Personally, I am in the wrong location but I have
my reasons for staying here. My pricing, on the other hand, is
correct. </LI></UL>
<DIV><STRONG>Other Points to Ponder</STRONG></DIV>
<UL>
<LI>Never, never, never use the bathroom in the customers home. You are
invading their privacy. Know where the public restrooms are use them
during the 30 minutes drive between appointments.</LI>
<LI>Never, never, never, smoke in their home...even if they do and
even if they offer it. </LI>
<LI>I know technicians who have made a good living from their PTG counterparts
who lost customers over these 2 simple rules. </LI></UL>
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