Our explanation of repair invoice costs

Let me start with a quick primer on our repair fees…

Unless a needed repair is covered under our fantastic warranty, we bill our customers for parts and labor, with a minimum repair fee of $425.00. It’s a usual and customary practice across pretty much every service industry in the country.

And yep… Every once in a while, someone complains their repair charge is too much, and we’re gouging them. So I wanted to explain why we charge what we do for repairs, so you understand what’s involved in our pricing.

We are locally known as being honest, and a reputable business… not a charity. And in order for us to support our customers in the future, we also have to stay in business, which means we have to charge for our services.

Let’s take a minimum $425 invoice as our example.

Here’s what costs we have to pay behind the scenes before we even begin working for you…

$127.00
We pay 30% average per job for liability insurance, workers compensation insurance, licensing, taxes, certification and bonding requirements.  (We pay the same percentage whether working on a 3-story steep pitched roof, or on the ground replacing a small piece of siding)

Many companies forgo insurance and/or licensing altogether, or carry insurance for less costly categories to minimize costs. Ethically, we can’t do that. We carry the appropriate, necessary and legally required policies.

$94.00
General expenses such as office support, phones, advertising, auto expenses, rent, maintenance, etc. average 22%.

Even before you count other costs directly involved with a job, we’re already at 52% costs simply to have and maintain a business.

So for the $425 invoice, our out-of-pocket costs are already $221, leaving only $204 for time, labor, direct costs and materials. And just the labor costs for our wonderful employees are not cheap. On average, these costs will eat up over $100, leaving us with a small profit of maybe $80-$100 if no parts are needed.

As you can clearly see, our repair fees aren’t just random amounts.

Every dollar has been thoroughly thought through, and we continually make every effort to evaluate and minimize costs. Plus, quite often, there are time and costs such as the process of gathering the information needed to submit an insurance claim, sending samples to manufacturers for analysis, which could be several hundred dollars.

Even ordering 3D drawings and breakdowns are required, and could be $50-500.

Bottom line: We’re not in business to make a killing in repair fees…

On the contrary… Our industry has large risks involved (unlike many other service providers) and we have very little choices in controlling over 50% of our costs to simply be in business.

And in order to give you the best possible service, we still have to be around. So please consider this information when you get your next repair bill. (Though if you do have questions about a bill, don’t hesitate to ask).

If you have any questions or problems we should know about, call Kim at 301-368-3551

On Top Home Improvements, Inc. 10818 Avonlea Ridge Place Damascus, MD 20872 Tel: 301-368-3551 Click to E-mail