BASE HOURLY SERVICE RATE TOUR

The Base Hourly Service Rate worksheet is an integral part of the Service Manager System. It is a Microsoft Works spreadsheet used to calculate a profitable hourly service rate for your shop. This information can then be plugged into the Ultimate Flat Rate Chart in order to calculate your charges for individual services.

To use the Base Hourly Service Rate you enter data specific to your business in four different categories (HOUR CALCULATIONS, NON-WAGE COSTS, WAGE COSTS, and RATE CALCULATIONS).

In the illustration to the right, the HOUR CALCULATIONS segment of the worksheet is shown. To use this segment, you only have to supply the information in the two green cells. All of the other information is created automatically by the program. The Total Productive Hours and the Repair Productive Hours are used by the program as part of the calculation of your hourly rate.

In the illustration to the right, the NON-WAGE COSTS segment of the worksheet is shown. To use this segment, you only have to supply the information in the green cells. All of the other information is created automatically by the program. The Non-Wage Hourly Overhead result is used by the program as part of the calculation of your hourly rate.

In the illustration to the right, the WAGE COSTS segment of the worksheet is shown. To use this segment, you only have to supply the information in the green cells. All of the other information is created automatically by the program. The program automatically calculates the Wage Overhead Per Productive Hour and the Total Overhead Per Productive Hour that appear at the bottom of this segment.

In the illustration to the right, the RATE CALCULATION segment of the worksheet is shown. To use this segment, simply enter your desired percentage of profit on labor in the light-green cell. The Retail Base Hourly Service Rate is then automatically calculated.

Not shown in this Tour, the Base Hourly Service Rate module of the Service Manager System includes detailed explanations of how to precisely determine all the data you need to enter.    Interested in how change might affect your profitability on labor? How will a rent increase affect overhead in the service department? How would a 5% across-the board pay increase affect profitability? To see the affect of any change, simply change any of the entries you make in the worksheet, and all the results are automatically updated.

For your next segment of the guided tour, go to Ultimate Flat Rate Chart Tour. Or, to go anywhere else you choose, use one of the links below.