Systemise Your Team for Increased Profits Section4
‘Systemise Your Team For Increased Profits’ Implementation Guide
4. What do the columns mean and how are they used? The columns within each section – REGULAR, MEMBER and DIFFICULT – all have varying columns. Let’s go through each section and explain what they mean and explain how they are used.
a. REGULAR SECTION The REGULAR section of the manual is the most commonly used section. It contains the pricing offered to every first time customer or to every customer that is not a member. Basically, for every job you attend, you use the ‘1st job’ column for pricing
There are two columns in the REGULAR section which are ‘1st job’ and ‘Add On’.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
11
‘Systemise Your Team For Increased Profits’ Implementation Guide
What does the 1st column mean – ‘1st job’? Taking one item within the REGULAR section of the manual as an example: Tap service on 6 Pairs of Taps:
The first column labeled ‘1st Job’ is made up of the following components:
1st Job Rate st
$50 1 Job rate/service call
Rate
+
$150 p/hour x estimated time
1st Job Price
Materials
+
(based on Reece national retail prices)
=
Let’s go through them one at a time to get a really good understanding of how they work. 1st Job Rate – is a standard fee built into every job. It can be referred to as a 1st job rate, service call or the like.
Rate – This value is made up of its own formula
Hourly rate $150 p/hour
x
Estimated Time
Rate
=
Hourly rate (example: $150) times by the estimated time it takes to complete the work at hand equals the rate. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
12
‘Systemise Your Team For Increased Profits’ Implementation Guide
Every job throughout the book has been estimated a length of time. For example: to complete the work for Tap Service on 6 pairs of taps could be estimated at 1 hour to complete (this time of 1 hour is made up and should not be taken literally). We understand that what takes one tradesman 1 hour could take another 1.5hours. It is for this reason that we provide you with a copy to work with for a month before we provide you with the ‘final version’, so that you can work with the manual for a period of time to determine if the rates are acceptable or require some changes.
Materials – a list of materials have been itemised within the formula by our leading hand, based on Reece national retail prices.
. For example, using the REGULAR pricing above, if you were called to a house to conduct a tap service, the price for this one single job would equal $360.50.
What does the 2nd column mean – ‘Add on’? The second column labeled ‘Add on’ is used when you are completing additional work at one location.
It is made up of the following components:
Rate $150 p/hour x estimated time
1st Job Price
Materials
x
(based on Reece national retail prices)
=
As you can see, this ‘Add on’ rate does not include a 1st job/service call rate. Continue reading to see how the ‘1st Job’ and ‘Add on’ column are used.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
13
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the REGULAR section used? How is the ‘1st Job’ column used? For example, using an extract from the REGULAR section as below.
Using the pricing above, if you were called to a house to conduct a tap service you would quote the customer
Tap service at 1st Job rate $360.50
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $360.50
www.lifestyletradie.com.au
14
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the ‘Add On’ column used? For example, using an extract from the REGULAR section as below.
Using the pricing above, if you were called to a house to conduct a tap service and whilst you were there, you found 2 hose taps that required changing, you would quote the customer
Tap service at 1st Job rate $360.50
+
Hose taps at Add on rate = $104.00
Total Job Price $464.50
Explanation: You were called to conduct a tap service hence this job is quoted at the ‘1st job’ rate. Any additional work you recommend be completed whilst you are on site are classed as an ‘Add on’ (a rate less the $50 1st job rate). Any additional jobs recommended to complete will also be quoted from the ‘Add on’ column.
There are, of course, variations to this rule: such as if the customer is a member with your company or if the job is difficult.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
15
‘Systemise Your Team For Increased Profits’ Implementation Guide
b. MEMBER SECTION The MEMBER section of the manual refers to the standard pricing offered to our membership customers. Let me explain. It contains the pricing offered to every customer that is a member. Basically, for every job you attend at a member customer home, you use the ‘Member’ column for pricing These rates are automatically set 10% lower than REGULAR rates. There are two columns in the MEMBER section which are ‘Member’ and ‘Member Add’.
Membership Club Program Our business offers our residential customers a membership club program. Building a membership program is like building a family. It keeps us connected, provides something to which people can feel a part of, a belonging, to stay connected. You want to offer such great value in your Membership Program that your customers are jumping through hoops to join and will remain loyal to you well into the future.
Our aim is to sign up every new residential customer as a Dr.DRiP member. In this way we have been given permission to keep in touch, communicate and build a relationship.
What is the purpose? So that when next this customer needs any plumbing, drainage or gas we are immediately the first business they think of.
Let me ask you this question – if one of your past customers needed a plumber would they call you to complete the work?
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
16
‘Systemise Your Team For Increased Profits’ Implementation Guide
The answer – I am sure they wouldn’t necessarily call your business simply because you don’t remind them of your service, you don’t educate them or offer any reason to stay connected.
They would not 100% think to call you first.
They would more than likely surf the net or open the closest local paper or yellow pages and call the first company that struck a cord. The short story is, the Membership Program sets a platform that allows you to communicate with your customers and keeps your business at the top of their mind so that when next they require your trade services, you are immediately the first company that comes to mind.
As I mentioned, our aim is to sign up every new residential customer as a Dr.DRiP member. There is a small joining fee, however, the discount rate as a member (10% off regular rates), are offered even on their first job. This discount is offered every time they use our services into the future.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
17
‘Systemise Your Team For Increased Profits’ Implementation Guide
What does the 1st column mean – ‘Member’? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
The first column labeled ‘Member’ is made up of the following components:
1st Job Rate st
$50 1 Job rate/service call
Rate
+
$150 p/hour x estimated time x 10% member discount
Materials
+
(based on Reece national retail prices)
=
Member Price
Let’s go through them one at a time to get a really good understanding of how they work. 1st Job Rate – is a standard fee built into every job. It can be referred to as a 1st job rate, service call or the like.
Rate – This value is made up of its own formula
Hourly rate $150 p/hour
x
Estimated Time
x
10% Member Discount =
Rate
Hourly rate (example: $150) times by the estimated time it takes to complete the © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
18
‘Systemise Your Team For Increased Profits’ Implementation Guide
work at hand times 10% Member discount equals the rate.
Every job throughout the book has been estimated a length of time. (N.B. this formula of allocated time can not be changed).
Materials – a list of materials have been itemised within the formula by our leading hand, based on Reece national retail prices.
What does the 2nd column mean – ‘Member Add’? The second column labeled ‘Member Add’ is used when you are completing additional work at one location for a member.
It is made up of the following components:
Rate $150 p/hour x estimated time x 10% member discount
© 2010 Lifestyle Tradie Pty Limited
1st Job Price
Materials
+
(based on Reece national retail prices)
=
www.lifestyletradie.com.au
19
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the MEMBER section used? How is the ‘Member’ column used? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
Using the member pricing above, if you were called to a house to conduct a tap service you would quote the customer
Tap service at Member rate $324.45
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $324.45
www.lifestyletradie.com.au
20
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the ‘Member Add’ column used? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
Using the pricing above, if you were called to a house to conduct a tap service and whilst you were there, you found 2 hose taps that required changing, you would quote the member
Tap service at Member rate $324.45
+
Hose taps at Add on rate = $104.00
Total Job Price $428.45
Explanation: You were called to conduct a tap service hence this job is quoted at the ‘Member’ rate. Any additional work you recommend be completed whilst you are on site are classed as an ‘Member Add’ (a rate less the $50 1st job rate). Any additional jobs recommended to complete will also be quoted from the ‘Member Add’ column.
There is one additional variation to this rule: if the job is difficult. Let me explain what I mean on the following pages. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
21
‘Systemise Your Team For Increased Profits’ Implementation Guide
c. DIFFICULT SECTION The DIFFICULT section of the manual refers to prices quoted when the work in question is considered ‘difficult’.
It contains the pricing offered to every first time customer or member when you would normally have referred to the REGULAR or MEMBER section, when the work is considered difficult and hence the DIFFICULT section is referred.
These DIFFICULT rates are automatically set 12% higher than REGULAR rates. There is one column in the DIFFICULT section which is ‘Difficult’.
What does the 1st column mean – ‘Difficult’? For example, using an extract from the DIFFICULT section as below. Tap service on 6 Pairs of Taps:
Using the difficult pricing above, if you were called to a house to conduct a tap service and you found that the job was no ‘ordinary’ job, you would quote the customer Tap service at Difficult rate $432.60
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $432.60
www.lifestyletradie.com.au
22
4. What do the columns mean and how are they used? The columns within each section – REGULAR, MEMBER and DIFFICULT – all have varying columns. Let’s go through each section and explain what they mean and explain how they are used.
a. REGULAR SECTION The REGULAR section of the manual is the most commonly used section. It contains the pricing offered to every first time customer or to every customer that is not a member. Basically, for every job you attend, you use the ‘1st job’ column for pricing
There are two columns in the REGULAR section which are ‘1st job’ and ‘Add On’.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
11
‘Systemise Your Team For Increased Profits’ Implementation Guide
What does the 1st column mean – ‘1st job’? Taking one item within the REGULAR section of the manual as an example: Tap service on 6 Pairs of Taps:
The first column labeled ‘1st Job’ is made up of the following components:
1st Job Rate st
$50 1 Job rate/service call
Rate
+
$150 p/hour x estimated time
1st Job Price
Materials
+
(based on Reece national retail prices)
=
Let’s go through them one at a time to get a really good understanding of how they work. 1st Job Rate – is a standard fee built into every job. It can be referred to as a 1st job rate, service call or the like.
Rate – This value is made up of its own formula
Hourly rate $150 p/hour
x
Estimated Time
Rate
=
Hourly rate (example: $150) times by the estimated time it takes to complete the work at hand equals the rate. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
12
‘Systemise Your Team For Increased Profits’ Implementation Guide
Every job throughout the book has been estimated a length of time. For example: to complete the work for Tap Service on 6 pairs of taps could be estimated at 1 hour to complete (this time of 1 hour is made up and should not be taken literally). We understand that what takes one tradesman 1 hour could take another 1.5hours. It is for this reason that we provide you with a copy to work with for a month before we provide you with the ‘final version’, so that you can work with the manual for a period of time to determine if the rates are acceptable or require some changes.
Materials – a list of materials have been itemised within the formula by our leading hand, based on Reece national retail prices.
. For example, using the REGULAR pricing above, if you were called to a house to conduct a tap service, the price for this one single job would equal $360.50.
What does the 2nd column mean – ‘Add on’? The second column labeled ‘Add on’ is used when you are completing additional work at one location.
It is made up of the following components:
Rate $150 p/hour x estimated time
1st Job Price
Materials
x
(based on Reece national retail prices)
=
As you can see, this ‘Add on’ rate does not include a 1st job/service call rate. Continue reading to see how the ‘1st Job’ and ‘Add on’ column are used.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
13
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the REGULAR section used? How is the ‘1st Job’ column used? For example, using an extract from the REGULAR section as below.
Using the pricing above, if you were called to a house to conduct a tap service you would quote the customer
Tap service at 1st Job rate $360.50
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $360.50
www.lifestyletradie.com.au
14
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the ‘Add On’ column used? For example, using an extract from the REGULAR section as below.
Using the pricing above, if you were called to a house to conduct a tap service and whilst you were there, you found 2 hose taps that required changing, you would quote the customer
Tap service at 1st Job rate $360.50
+
Hose taps at Add on rate = $104.00
Total Job Price $464.50
Explanation: You were called to conduct a tap service hence this job is quoted at the ‘1st job’ rate. Any additional work you recommend be completed whilst you are on site are classed as an ‘Add on’ (a rate less the $50 1st job rate). Any additional jobs recommended to complete will also be quoted from the ‘Add on’ column.
There are, of course, variations to this rule: such as if the customer is a member with your company or if the job is difficult.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
15
‘Systemise Your Team For Increased Profits’ Implementation Guide
b. MEMBER SECTION The MEMBER section of the manual refers to the standard pricing offered to our membership customers. Let me explain. It contains the pricing offered to every customer that is a member. Basically, for every job you attend at a member customer home, you use the ‘Member’ column for pricing These rates are automatically set 10% lower than REGULAR rates. There are two columns in the MEMBER section which are ‘Member’ and ‘Member Add’.
Membership Club Program Our business offers our residential customers a membership club program. Building a membership program is like building a family. It keeps us connected, provides something to which people can feel a part of, a belonging, to stay connected. You want to offer such great value in your Membership Program that your customers are jumping through hoops to join and will remain loyal to you well into the future.
Our aim is to sign up every new residential customer as a Dr.DRiP member. In this way we have been given permission to keep in touch, communicate and build a relationship.
What is the purpose? So that when next this customer needs any plumbing, drainage or gas we are immediately the first business they think of.
Let me ask you this question – if one of your past customers needed a plumber would they call you to complete the work?
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
16
‘Systemise Your Team For Increased Profits’ Implementation Guide
The answer – I am sure they wouldn’t necessarily call your business simply because you don’t remind them of your service, you don’t educate them or offer any reason to stay connected.
They would not 100% think to call you first.
They would more than likely surf the net or open the closest local paper or yellow pages and call the first company that struck a cord. The short story is, the Membership Program sets a platform that allows you to communicate with your customers and keeps your business at the top of their mind so that when next they require your trade services, you are immediately the first company that comes to mind.
As I mentioned, our aim is to sign up every new residential customer as a Dr.DRiP member. There is a small joining fee, however, the discount rate as a member (10% off regular rates), are offered even on their first job. This discount is offered every time they use our services into the future.
© 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
17
‘Systemise Your Team For Increased Profits’ Implementation Guide
What does the 1st column mean – ‘Member’? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
The first column labeled ‘Member’ is made up of the following components:
1st Job Rate st
$50 1 Job rate/service call
Rate
+
$150 p/hour x estimated time x 10% member discount
Materials
+
(based on Reece national retail prices)
=
Member Price
Let’s go through them one at a time to get a really good understanding of how they work. 1st Job Rate – is a standard fee built into every job. It can be referred to as a 1st job rate, service call or the like.
Rate – This value is made up of its own formula
Hourly rate $150 p/hour
x
Estimated Time
x
10% Member Discount =
Rate
Hourly rate (example: $150) times by the estimated time it takes to complete the © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
18
‘Systemise Your Team For Increased Profits’ Implementation Guide
work at hand times 10% Member discount equals the rate.
Every job throughout the book has been estimated a length of time. (N.B. this formula of allocated time can not be changed).
Materials – a list of materials have been itemised within the formula by our leading hand, based on Reece national retail prices.
What does the 2nd column mean – ‘Member Add’? The second column labeled ‘Member Add’ is used when you are completing additional work at one location for a member.
It is made up of the following components:
Rate $150 p/hour x estimated time x 10% member discount
© 2010 Lifestyle Tradie Pty Limited
1st Job Price
Materials
+
(based on Reece national retail prices)
=
www.lifestyletradie.com.au
19
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the MEMBER section used? How is the ‘Member’ column used? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
Using the member pricing above, if you were called to a house to conduct a tap service you would quote the customer
Tap service at Member rate $324.45
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $324.45
www.lifestyletradie.com.au
20
‘Systemise Your Team For Increased Profits’ Implementation Guide
How is the ‘Member Add’ column used? For example, using an extract from the MEMBER section as below. Tap service on 6 Pairs of Taps:
Using the pricing above, if you were called to a house to conduct a tap service and whilst you were there, you found 2 hose taps that required changing, you would quote the member
Tap service at Member rate $324.45
+
Hose taps at Add on rate = $104.00
Total Job Price $428.45
Explanation: You were called to conduct a tap service hence this job is quoted at the ‘Member’ rate. Any additional work you recommend be completed whilst you are on site are classed as an ‘Member Add’ (a rate less the $50 1st job rate). Any additional jobs recommended to complete will also be quoted from the ‘Member Add’ column.
There is one additional variation to this rule: if the job is difficult. Let me explain what I mean on the following pages. © 2010 Lifestyle Tradie Pty Limited
www.lifestyletradie.com.au
21
‘Systemise Your Team For Increased Profits’ Implementation Guide
c. DIFFICULT SECTION The DIFFICULT section of the manual refers to prices quoted when the work in question is considered ‘difficult’.
It contains the pricing offered to every first time customer or member when you would normally have referred to the REGULAR or MEMBER section, when the work is considered difficult and hence the DIFFICULT section is referred.
These DIFFICULT rates are automatically set 12% higher than REGULAR rates. There is one column in the DIFFICULT section which is ‘Difficult’.
What does the 1st column mean – ‘Difficult’? For example, using an extract from the DIFFICULT section as below. Tap service on 6 Pairs of Taps:
Using the difficult pricing above, if you were called to a house to conduct a tap service and you found that the job was no ‘ordinary’ job, you would quote the customer Tap service at Difficult rate $432.60
© 2010 Lifestyle Tradie Pty Limited
=
Total Job Price $432.60
www.lifestyletradie.com.au
22
