The cost of business??

Dasdubber · 2007-12-17T04:58:12+00:00

Just thought I'd throw out a recent experience of mine for comments and thoughts..... I run my own small Audiology business [hearing assessments/hearing aids etc] (one practitioner (me) and one receptionist) - last week I had a patient book in for a 15 minute appointment for a hearing aid repair/adjustment (the aid was supplied and fitted by another provider). Anyway, to keep this short and not rant, they needed a major repair (more $ in parts) as well as taking 45 minutes as they only noted ("I just need a quick adjustment" when they made the appt and were therefore quoted $30 for that 15 min service). After 45 mins ($90 for clinical time) plus $45 in parts they were most upset when they had to pay for the 45min appt plus parts - they couldn't believe that I'd charge them "so much" for something that they were "quoted $30 for" (no we don't quote on repairs, only on the cost of clinical time). I had to justify my cost to them explaining why I charge my set hourly rate (broken into 15min blocks) including overheads like rent (westfield shopping centre - ouch), staff costs (salary, workers comp, super), outgoings, consumables, equipment etc etc etc So it got me thinking, for any of you who run a business, or more importantly any of us "consumers" of services - how much do you think about what it costs to run a business when you utilise a service (be it beauty treatment, accountancy fees, electrician charges - you get the drift)? For example you go to the mechanic (just an example - numbers are arbitrary) - and you get charged $80/hr + GST + materials. I know I used to automatically think wow he must be doing alright to take home $80/hr.....until I realise he may only see around $30/hr after overheads (remember numbers are just an example). So what are your thoughts, would you want a cost of a service justified, or do you just accept it and not think twice? Cheers Alan

Sioux Seriously Crusin Dubber

178 posts · joined Jan 2007 · 22 Dec 2007, 4:46 pm

#625501

i dont own a small business myself, but am employed by one.

We as locksmiths charge a $55 call out fee. flat rate. whether it be to turn up and have paper work signed, or do an hours work. iv had dozens of clients complain about paying $55 for me to gain entry to their property after they've locked themselves out, mostly because from alot of practice i can pop most household locks in 15-30 seconds.

they find it hard to understand how 30 seconds of work is $55, what they dont understand is it has taken me alot of practice to be this efficient.

sometimes paying more for less isnt such a bad thing.

5PL1TDCS10N Insano Dub Head

845 posts · joined Jan 2003 · 22 Dec 2007, 8:00 pm

#625527

“The bitter taste of poor workmanship lingers long after the sweetness of cheap prices has passed”

I am an illustrator/designer and freelance after hours. Once in a while I get a client that questions why things cost so much and I reply that to get to where I am at the moment I had to start drawing at 3 years old. They always nod & smile🙂Wayne

GTMac Fahrvergnugen

976 posts · joined Nov 2004 · 23 Dec 2007, 9:55 am

#625583

Sioux wrote:i dont own a small business myself, but am employed by one.

We as locksmiths charge a $55 call out fee. flat rate. whether it be to turn up and have paper work signed, or do an hours work. iv had dozens of clients complain about paying $55 for me to gain entry to their property after they've locked themselves out, mostly because from alot of practice i can pop most household locks in 15-30 seconds.

they find it hard to understand how 30 seconds of work is $55, what they dont understand is it has taken me alot of practice to be this efficient.

sometimes paying more for less isnt such a bad thing.

Yeah thats me 😂 I think its more the fact that Im pissed off locking the keys in. But yes your time getting to the door and back to work is not free.

I do window frosting and security films in my spare time. People seem to forget that there are 2 components, the material cost and the labour cost.

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