11 I have a workshop with three fitters and I
Page 53
If you've noticed an error in this article please click here to report it so we can fix it.
have accepted work from another haulier to maintain his vehicles. Could you say what would be a fair charge to make for this service?
A You should work out the hourly labour charge, add reasonable percentage for profit and charge accordingly.
One way in which the labour charge can be worked out is to add the cost of providing the workshop and staff and divide this by the available productive hours worked. For instance, if your fitters work 40 hours a week, have three weeks holiday a year and also take the 10 days statutory holidays, the calculation might be as follows : viding the shop and staff is £13,188 a year, then this figure divided by the total available productive time is £3 an hour, add to this, say, 20 per cent for profit and the charge becomes E3.60.