Step one.
Work out your average monthly business running costs - here's an example.
Rent £750
Utility bills £150
Insurance £25
Waste removal £60
Vehicle running costs £200
Salary £5000
Advertising £50
Accountant fees £30
Tools £150
Total: £6415
Step two.
Now work out how many hours you work a month.
8am - 5pm = 45hours/week
45hours/week x 4.34 (average weeks in a month)
Total: 195.3 hours/month
Step three.
Here's the formula to get your basic labour rate.
Total monthly outgoings ÷ hours worked ÷ number of productive employees
£6415 ÷ 195.3 ÷ 2 = £16.42
£16.42 is the BASE labour rate you should charge in this example, you need to add a % profit margin to ensure your business is sustainable, which is why the app allows different labour rates for different customer types.
Now you know how to set your labour rate.
Use SMART Estimator app to enter your labour rates for different customers, set up paint & materials costs, and start building estimates in a way that makes sense for your business.
All whilst managing your day to life as a body repairer.
Want to know what to charge paint & materials or find out more? Click here.