How do you guys handle the cost of supplies and consumables? I've worked in shops that charged a flat 5% of the labor to cover them and places that just ate the cost. I was kind of curious how the independents and even you company guys chime in on this. Let's face it gone are the days of anything being cheap.
When I worked at the dealership we tried both ways. We had a huge "Shop Only" inventory and techs had to fill out requisition slips for every nut, bolt, washer, terminal, ect. used out of the inventory so it could be charged to the work order. That proved to be a PITA for the service writer and all the techs so we started charging the "Shop Supplies" percentage on every work order. It varied over the years but was close to 5%. We did get a few people that complained about the non-itemized fee and felt cheated but we had way more issues with guys bitching about a $6 can of brakleen, $1.20 for a 3/8 nut, or $.85 for a butt connector even on a $5k bill. I have it easy now all my "shop supplies" get charged to 1 account. At the end of the year a certain percentage of our equipment profits are pulled back to cover that account. If we are grossly over or under on our estimate we adjust the percentage for the next year. All actual repair parts are charged directly to the machine at the time of purchase and count against operating cost.
We only have one truck and I do not charge for the small stuff. I'm thinking on welding jobs adding for rod if I know it will be a lot. We have only been doing outside work for a year do still learning. Jason
we charge a 10.00 shop supply fee on all bills heat shrink butt connectors we charge out if it is more than 1 nuts and bolts are the same
that's a hard one to come up with a "right answer"!! I have done it both ways & like my dad used to say "its the small stuff that you forget & will make you loose money on a job" the way im doing it now is to itemize everything & charge accordingly every bolt,nut,washer,fitting,etc!! yes it sux but there is no missing anything!! I used to do it as misc shop parts on the ticket & the customers would complain bout not knowing what I was charging for. the new way takes a little more time to do which the customer is getting charged the same rate for me figuring the ticket as for working on the machine so it all comes out in the end!!
We don't charge any supply fee. It is absorbed by the company. If a job requires a case of brake clean or a container of loctite, it will get billed to the customer. If it is a couple connectors or a bolt and a dab of sealant, it does not get charge. If a customer specifically requests that we use a certain loctite on every bolt, they will get billed.
Nuts and bolts are ordered on the work order. Sealants are dependent on how much it takes. If it is over half it gets charged to the job. We also have a shop supply charge to cover towels, gloves, bulk brake wash and absorbent pads.
We charge $5.00 on every work order as shop supplies, if its whole cans or tubes then we charge them out, we try to stock hardware then restock and bill out at current price. Then just attach receipt against work order.
When I worked as a mechanic we charged 5%. Sometimes we would come out OK and sometimes not but it worked out in the end. We always informed customers of that charge before we started any work. "there will be a 5% fee added on to cover shop towels, dry sweep, solvents and cleaners plus sealant, any hardware and such". We also told them that anything specialty in the way of hardware would be charged. Never had any customer problems. Rick
Same as above - 5%, but all major supply of hardware and/or consumables gets billed separately to the job. You will lose on some jobs and make on others but at the end of the day you should come out even. The trick, if in fact it is a trick, is knowing what consumables to bill separately. Effectively consumables are like employee travel expenses, long term the idea is to break even on them.
const eq dealer here, most hardware, nuts/bolts are charged out with OEM part numbers, brake clean, pent oil,ect by part numbers. electrical connectors, tie wraps, rags, gloves, safety glasses, and misc nuts & bolts figured into general shop supplies, and billed to the work order as shop supplies 5% of total bill. shop & field labor rates are different, field rate is $5 higher, plus a flat rate service call fee to every call. :drinkup
Yair . . . I have been "out of the game" for nearly forty years but "back then" the customer received what in effect was two invoices or maybe three if there was crane hire involved. We had different rates for machining, welding and general labour and all parts and consumables were itemised down to the last welding rod and 4" grinding disk and 1/4" nut and bolt . . . charged at the same mark up as we sold across the counter. Oxy and acetylene was charged in quarter hour blocks. Cheers.