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Effective Labor Rate Is a Key Measurement in the Service Department

Effective Labor Rate Is a Key Measurement in the Service Department

Another key indicator in the Service Department is the Effective Labor Rate or EFL. Measured in conjunction with Hours Per Repair Order, it can be used as a powerful tool in gauging Advisor Performance.

What is Effective Labor Rate?

It is a measurement of how good of a job you do in selling Time to the Customer and how much money you kept from selling that unit of time.

In the Service Department we sell Labor Hours. The EFL is another way of measuring how well we do that job.

What follows is an illustration. For simplicity sake we will use $100.00 a Labor Hour.

You have a Service Advisor who sold one hour of labor in your shop. He closes the repair order and the Customer comes in to pay the bill. They pay $100.00. The Effective Labor Rate for that sale is $100.00 an hour. 1 RO at 1 Hour of Labor Time Sold at $100.00 equals $100.00.

Say the Customer comes in a pays $90.00 for that same labor hour. Now the EFL is $90.00.

Every time there is a reduction in the amount of money you collect from the Customer, there is a corresponding reduction in the EFL. As you can see, discounting is the number one way to decrease your EFL.

There is another factor in the Service Department that can have a profound impact on the EFL and that is the type of repair the repair facility is doing. And there is one other thing you must know about EFL. It is cumulative.

Say your Advisor had 10 Customers today. Of the 10, 4 were minor services like an oil change. The remaining 6 were typical repair orders, customer pay mixed with warranty repairs. This particular Service Advisor checks his Performance Numbers daily and notices that compared to the day before, he had a bit of a fall off in total Performance Numbers.

He investigates and notices that the day before he wrote 10 Repair Orders, sold 1 Hour of Labor on each RO and collected $1000.00 from the Customers he worked with. His EFL for that day was $100.00 per Labor Hour.

Today, his results are markedly different. On the ROs that were minor services, the Labor Charge to the Customer is only $7.50 which translates into an EFL of $25.00 an hour. He wrote 4 minor services. On the 4 minor services he sold.3 per RO in Labor Time Sold, and he collected $30.00 from the Customers on those Repair Orders.

On the remaining 6 Repair Orders he collected $600.00. The total collected from all of the Customers is $630.00. The Labor Time that he actually sold is 7.2 hours.

4 Repair Orders at.3 each and 6 Repair Orders at 1 hour each equals 7.2 hours of Labor. That translates into an EFL of $87.50 an hour. $630.00 divided by 7.2 Hours of Time Sold gives you the Effective Labor Rate, in this case, $87.50.

If you are the Service Manager and keeping an eye on your Advisors Performance Numbers daily, this will not seem to be out of line.

However, continued Low EFL is indicative of some type of a problem that needs to be addressed.

For instance, if your Advisor is a very good Discounter, it may be that he or she is not very good at estimating a repair, or not very confident in the quality of service provided. Maybe the only Service Item they can sell is a minor oil change and they need Sales Training to overcome their shortcomings.

Effective Labor Rate is another tool the Advisor and the Manager can use to measure Performance. Check it daily, keep an eye on Discounts and make sure the Advisors know what Products and Services best fit their Customers’ needs. If you can do that, the EFL will take care of itself.

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Source: http://ezinearticles.com/?Effective-Labor-Rate-Is-a-Key-Measurement-in-the-Service-Department&id=5185552

Author: [author]

Home Repair – 5 Tips to Find a Home Repair Company

Home Repair – 5 Tips to Find a Home Repair Company

Do you have a Home Repair that you want completed? Finding an affordable and quality company or contractor to do your home improvement repairs can be easy if you know what to look for. These 5 tips will quickly show you important traits to look for before choosing the contractor or company to do your home repairs.

1. Make sure you find out if the contractor is licensed and bonded to complete the home improvements that you are needing finished. An example would be if you lived in San Antonio, TX. In this case you would want a licensed San Antonio Home Repair expert not a Houston licensed repair contractor. Basic stuff, but important, to help cover your home in the event a problem occurs during the home improvement project.

2. What type of handyman services does this contractor perform? Home repairs can range from large to very small projects so having a home improvement company who provides many services is an advantage. These repair jobs may require a few skills to complete so having a well rounded handyman can save you money.

3. What type of experience does this particular construction contractor have? Have they been doing home services and building repairs for at least 5 years? Make sure to ask about references for jobs they have completed that are similar to your home project.

4. Be sure to get a written guarantee for all work completed! This could easily save you hundreds and maybe thousands down the road. If the business doesn’t provide a guarantee then go find a company or contractor who will.

5. How competitive is the pricing of the company when considering how good the workmanship is? Well if you have a company who can beat all prices and does a poor job you still lose! Make sure to see some before and after photos of their past jobs and then talk about pricing. Cheaper is not always better.

Going back over these 5 tips and really keeping things in mind like experience, skills, and services provided can help you choose the best Home Repair expert or contractor in your area. Remember cheaper service may not be the best quality so see some past photos before deciding.

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Source: http://ezinearticles.com/?Home-Repair—5-Tips-to-Find-a-Home-Repair-Company&id=3027436

Author: [author]

Home Repair – You Can Do It Yourself

Home Repair – You Can Do It Yourself

Do not be frightened by home repairs. With a little investigation and confidence, most home repairs are less difficult than they seem.

With all of the free information available on the Internet, in the library, local home improvement centers and friends even difficult home repairs can be accomplished without the need of hiring a professional.

The problem is that many of these home repairs can seem unapproachable to an inexperienced homeowner.

Most homeowners have no idea how the inside of a toilet tank works, how to shut the gas off to their water heater, how to install a pilot light, how to install a thermostat for your heating & cooling system.

But most people do have the ability to fix their toilet, change the thermocouple on their water heater, relight a pilot light, caulk around the tub, and replace a light switch.

The first thing that is needed has to be the willingness to try. There is a great sense of accomplishment to be had when you take care of these things yourself without spending the money to call a service person.

Here are few things that every homeowner needs know to help them do their own home repairs.

  • Where your Electrical Breaker (or Fuse) box is located.
  • Know which breaker (or fuse) turns off the power to which parts of your home.
  • Where the Main Gas Shut Off Valve is for the Natural Gas or Propane coming into your home.
  • Where the Gas Shut Off Valves are for all gas appliances.
  • Where the Main Water Shut Off Valve is for the home. (Most homes have a shut valve before and after the water meter.)

If you know how and where to turn the water, gas and power off do different areas of your home if something were to go wrong there should not be too much of a mess.

If you take these basic precautions, you will not have to feel bad about any attempt at maintaining or repairing anything in your home. After all, if you mess things up too much, you can still call a repair person to fix it for you.

So, how do you go about learning how to do these things?

Anymore my first stop is YouTube http://www.youtube.com/ for almost everything I want to know something about.

If I do not find what I am looking for on YouTube or for a backup I usually ask a friend or neighbor.

Your local hardware or home center usually has knowledgeable people who can direct you to the proper way to handle any task.

Your local library and the internet have more information than you can process.

In my experience sometimes the best thing to do is check a few reliable sources and then get started.

For maintenance, look at your owner manuals. Almost everything in your home has a manual and if you do not have the manual, it usually can be found on the manufacturer web site.

What you'll find is that the more home maintenance and minor repairs that you do, the easier it will get. Things no longer seem threatening and you're willing to try bigger and bigger things. Each thing you do on your own saves you the cost of hiring someone to do it and often the job will get done faster.

I hope this helps.

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Source: http://ezinearticles.com/?Home-Repair—You-Can-Do-It-Yourself&id=7274456

Author: [author]

3 Futon Seater Swing Where East Meets West

3 Futon Seater Swing Where East Meets West

Sometimes, it’s the simple pleasures in life that makes us happy, like swinging happily in a hammock at a beach. Why not innovate a little by creating the 3 futon seater swing? A 3 futon seater swing is a futon converted into a swing with the capacity of a 3 seater fit. Currently, if you are looking for one, then perhaps you need to make one yourself. But don’t fret just yet. It’s not as tough to make one as you think!
First you need to get yourself a 3 seater swing. The 3 seater swing you buy must have a 3 Seater Cast Aluminum. This swing frame you purchase must be a true heavy duty garden swing with heavy duty powder coat finish. Make sure that it also has a tilting sunshade and heavy duty sling set and sunshade so it will not fade in the most harsh outdoor climate. This is the your first step and skeleton of your 3 futon seater swing.
Now that you have your 3 seater swing frame. It still isn’t the most comfortable thing in the world. Good can be better. So we look at combining another luxury into our set. The hard part is to find a futon that you can use for cushioning in your brand new 3 seater swing frame. Now don’t be discouraged. After all, it’s just a futon you are looking for to fit the puzzle right? Wrong. There is no place on earth you can find a futon which can fit the size of a 3 seater swing. It just isn’t available.
However, there is alternative. You can find a cushion made with the texture and quality of a futon mattress and then use it as your cushioning for your 3 futon seater swing. Now just head down to a futon store and look for a baby futon. You need to tell the sales person your intention so he or she can have an idea of your 3 futon seater swing project and estimate the best cushion made of futon specifications for your 3 futon seater swing. Ask to see the choices of baby futons. Futons made for babies are of same texture and are not softer or harder than ordinary futons. So all you need is six of them and then you will have your complete fusion of traditional Japanese bedding and 3 seater outdoor garden swing. Your new 3 futon seater swing will be the envy of your neighbors for a very long time!
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Source: http://plrplr.com/27642/3-futon-seater-swing-where-east-meets-west/

Author: admin

Home Renovations

Home Renovations

Does your home need an enhancement? Home improvement projects are the most popular way to enhance your living space while bringing up your property value. Some people turn to renovations in order to expand their square footage, while others do household upgrades. Here are a few of the top residential renovations that homeowners are doing to improve their property …

Painting: Whether it is the interior or exterior of the home, painting can make any space look better. A new paint job can be used to brighten up a room, make a room feel warmer or cooler, it can be used on accent walls, or to help any other interior design look you are going for. On top of giving a room some character, a new paint job gives the home a nice clean look and feel. It will cover up all the flaws and marks that are on the walls and give a room a fresh start. The same goes for the exterior of the home. You do not even need to change the color of your home to give it a fresh new look when you are painting the exterior of the home.

Tile Installation: Carpet is nice, but are carpet stains something you are prepared for? Those with children and pets know the wrath that comes with carpet stains and wear and tear on a daily basis. Laminate flooring can be considered the more affordable option, but unlike tiles, laminates can not be replaced in sections. Tile flooring is a durable solution with attractive look and easy cleanup. Additionally, tile installation help increase property value and appeal to potential home buyers.

Pressure Wash: Talk about making a difference. If you are not interested in repainting your home, consider this practical service. Pressure washing can clean more than just a dirt stained driveway or sidewalk, it can make a noticeable difference to a building – especially brick homes.

Kitchen Remodeling: Every dream home has a "dream" kitchen to go along with it. You can turn any average kitchen into focal point by making major or minor renovations. Some minor upgrades may be replacing cabinet hardware like handles and knobs or refinishing the cabinets. Painting, wallpapering, or adding a trim can always add character to a kitchen. Many kitchen renovations include upgrading to granite countertops or adding an island.

Home renovations are not just limited to painting, tile installation, pressure washing, and kitchen remodeling. There is a world of upgrades to be done to the home and range anywhere from bathroom remodeling to adding a deck or porch. In the end, no matter what the renovation project, a home upgrade certainly proves to be a smart investment as it adds both comfort and property value to your home.

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Source: http://ezinearticles.com/?Home-Renovations&id=6215562

Author: [author]

GOP Lawmakers Aim for Final Tax-Cut Bill

GOP Lawmakers Aim for Final Tax-Cut Bill

As House and Senate legislators prepare to negotiate a compromise tax-cut bill, some construction groups prefer the version the Senate passed on Dec. 2 over the House-approved measure, particularly because of better provisions for partnerships and other pass-through entities.

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Source: https://www.enr.com/articles/43600-gop-lawmakers-aim-for-final-tax-cut-bill

Author: [email protected] (Tom Ichniowski)

Creating the Perfect Home Remodeling Priority List

Creating the Perfect Home Remodeling Priority List

Home remodeling is one of those projects that can be fun or a pain in the – you know what. It is best to start your home remodeling plan with one room at a time and decide on the value of each room to prioritize where to save and where to spend. This article will look at the value of each room to help you deiced the type of home remodeling project you may consider.

The big debate on what room is the most used room in the house could go on forever. Some say it is the kitchen others say it is the living room while others say the master bedroom. Everyone is entitled to their opinion, and you can use some basic rules to see what the highest priority is for you.

If you have kids then you probably spend more time than you like in the kitchen cooking. If you have a smaller family maybe the kitchen is just a place where you are in and out. If you cook allot then the kitchen should get some very high consideration for your home remodeling project.

Do you like to play games and watch TV? If you find yourself or your family watching television often and you otherwise enjoy family night games then you should place the family room at the top of your list. Maybe it is time to add family room to your home remodeling ideas. Perhaps you could remodel a spare bedroom or add a new room to the house.

Do you have guest spend the night often? You may want to think about making a nice guest bathroom with all the luxuries of a five star hotel for your guest. Do not do this without you love to have people stay awhile and come often. They are likely to really enjoy visiting you.

When planning your home remodeling ideas you will find that they become much easier with a good priority system. Once you know which rooms are the most important to you and your lifestyle then that is where the money should be spent on nicer upgrades. On rooms that are not high on the list, but still need some fixing you could use less expensive things to fix them up.

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Source: http://ezinearticles.com/?Creating-the-Perfect-Home-Remodeling-Priority-List&id=551289

Author: [author]

New Customer Service Role Raises Client Advocacy to Its Highest Level

New Customer Service Role Raises Client Advocacy to Its Highest Level

Colorado-based specialty contractor creates the role of chief customer officer, one of the first in the construction industry

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Source: https://www.enr.com/articles/43585-new-customer-service-role-raises-client-advocacy-to-its-highest-level


Stockholm Tunnel Project Pursues BIM Mandate

Stockholm Tunnel Project Pursues BIM Mandate

A rubber safety screen falls away from a newly blasted rock at one of the many faces forming an 18-kilometer-long tunnel being built to divert traffic away from Sweden’s capital city. 

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Source: https://www.enr.com/articles/43584-stockholm-tunnel-project-pursues-bim-mandate

Author: [email protected] (Peter Reina)