Re: Tire Service Cost's- is this high ?

Posted by T_Bone on June 30, 2004 at 05:29:16 from (4.240.39.66):

In Reply to: Tire Service Cost's- is this high ? posted by Billy NY on June 29, 2004 at 18:37:50:

Hi Billy,

Here's what a typical service truck costs;

Labor $20hr
Med Ins & Pension & vacation $10hr
Workmens comp, Medicare, SSA & FICA $10hr
Total man hour cost =$40hr

Service truck;
Ins, taxes, maintance, truck replacement cost, equipment replacement, fuel =$16hr

Total cost = $56hr

I have to make 35% profit or I can't stay in business so that brings it too $86.15hr per service call.

Sounds expensive but that typicaly will not make a company any money in fact most loose money.

Someone has to pay this cost weather that truck sits at the shop or on the job for 2000hrs per year. Your lucky to bill out 60% of the cost during the year on a busy service truck. That means the owner picks up the other 40% and is why a service truck will loose money if thats all your counting on.

Thats also why most company's hate to run a service truck. No one wants to pay for the actual charges. I'm the same way now that I'm retired.

This cost applys just about to every type of service truck, not just a tire shop service truck.

T_Bone

Follow Ups:

• Re: Re: Tire Service Cost's- is this high ? mike 13:41:32 06/30/04 (0)
• Re: Re: Tire Service Cost's- is this high ? Billy NY 05:57:29 06/30/04 (0)

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