Tech Compensation as a percentage of sales.

[ReggieDay]

I'm wondering where some of you stand on technician pay caps as a percentage of sales. For example, if a tech was paid $15 for a 1.0 hour job that was billed at $55, then his compensation would be approximately 27% of the sale, resulting in an approximate 73% gross for the department. Excluding the additional expenses of benefits, what would be a general rule of thumb on tech pay as a percent of sales? Any input would be greatly appreciated.

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Reggie Day
Service Manager
McComb, Mississippi

[Doug]

Well, 73% is a darn good number.

But, personally, I don't think of tech pay as a percentage. I have a variety of techs at anywhere from $12 to $19 per flat rate hour. As it turns out, my particular mix of techs coupled with our billing practices yields 72% gross.

If my gross falls much below that for too long, we've either got a billing problem, a matrix problem, or the wrong techs doing the wrong jobs....

Cheers
Doug