Today we go through the small job travel fee and how it applies to your business and can dramatically affect the profitability of all your jobs under 8 hours. Here’s my script I used to use… Essentially everyone is charging a call out fee, the key is to find something that works for you, your clients + your area. And call it something that your clients can understand. You can call it a call out fee, service fee, admin fee, or whatever. We used to call it a “small job travel fee”, which was applicable to all jobs under 8 hours. I would explain it as I can do 5 x 1 hour jobs in a day, 3 x 2 hour jobs, or 1 x 8 hour job. If I am $100 per hour, I make $500 on the first scenario, $600 on the next or $800 on the last. Basically I should not be penalised for how long someones job takes. The average travel is between 30-45 mins, you will need to cover these lost $$ in your fee. Also in your calculation you need to be aware of if you are travelling as tradie only, or TA teams. You also need to nail your schedule. Near enough is not good enough. You can also consider charging more for a same day call out. There a couple of other ways to skin the cat here: -have a higher hourly rate to suit a less amount of hours (ie $100x8 is $800, $133x6=$800. -build your price book out in increments to suit efficiency (ie 1-3 ceiling fans is $275, 4-6 is $200 etc) -spread the “fee” across all your price book items evenly -charge for the travel on an hourly rate Enjoy the pod and get after it! Much love xx Keywords small job travel fee, service fee, job profitability, labor efficiency, scheduling, job management, break-even rates, profit margins, client expectations, electrical work Summary In this conversation, Sparky Coach discusses the intricacies of managing small job travel fees and their impact on profitability in the electrical service industry. The discussion covers various aspects such as understanding job rates, the importance of labor efficiency, scheduling, and the need for clear communication with clients regarding fees. Key metrics for evaluating job performance and setting appropriate profit margins are also explored, emphasizing the need for effective job management to ensure financial success. Takeaways Understanding your net profit per hour is crucial. Labor efficiency does not directly correlate with profitability. Scheduling jobs effectively can maximize earnings. A small job travel fee can help cover gaps in income. Break-even rates are complex and require careful calculation. Every job should be evaluated for its net profit. Setting appropriate margins is essential for different job types. Client expectations should be managed regarding fees. The most important job is the one you're currently working on. Finding a rhythm in job management can lead to better outcomes. Titles Maximizing Profitability with Small Job Travel Fees Understanding Job Rates in the Electrical Industry Sound bites "What's a good gross margin? More." "The most important job is the one you're at." "Find your rhyme, find your rhythm." Chapters 00:00 Introduction to Small Job Travel Fees 00:16 Understanding Job Rates and Profitability 02:03 Key Metrics for Job Evaluation 04:27 Labor Efficiency and Quality of Work 06:48 The Importance of Scheduling and Job Management 09:12 Analyzing Job Types and Profit Margins 11:02 Break-Even Rates and Financial Understanding 12:00 Examples of Job Profitability 14:48 Creating a Small Job Not Urgent List 16:14 Gross and Net Margins Explained 18:09 Balancing Job Types and Client Expectations 19:07 The Role of Scheduling in Profitability 21:01 Implementing a Small Job Travel Fee 24:15 Optimizing Travel and Job Efficiency 26:55 Managing Client Relationships and Expectations 29:15 Final Thoughts on Job Management and Profitability
