If there’s one thing that’s certain, the average costs to run a home repair business in 2022 is very different from the costs just a year ago.
Inflation has impacted everything. Retail appliance prices have increased around 20 percent and wholesale appliances prices have increased three to five times over the last couple of years. The home repair industry has been hit just as hard with price increases as well.
With 2023 around the corner are you considering a labor increase to cover inflation costs? Expenses add up quickly including insurance, wholesale part prices, material costs and the fuel to run service trucks. Have you increased your service rates to cover the soaring inflation costs of gas, labor and parts?
With service transactions, understanding the cost of doing business is essential to running a successful business.
Want to know your actual rates or what the rates should be?
We’ve created a free online CODB Calculator to help you get rates based on the cost of doing business. This free tool provides an average hourly rate needed for your business. You can modify hourly rates, average percentage of completed jobs, average holidays off per tech and what your target profit is to get your average service call.
After you plug in your actual numbers, you will be able to review your break even rate, cost to cover overhead only and what your billable labor rate should be to reach your target profit.
Lowering expenses is important, but the most significant long-term gain is adjusting your service fees to accommodate inflation will improve your service department’s efficiency.
