Problem: You send your install team out to do a job. The job was sold with 6 hours of labor built into the price. Your install team working day is 8 hrs. Who will pay for the last 2 hours of the install teams' day? You are! To avoid this scenario, use the day rate labor adjustment setting in the pricing rules. The app will make a day rate labor adjustment to cover the fraction of the day that is leftover.
Case Study 1
A customer quote is written for an AC/Coil change-out. The quote includes 1 hour of labor for the coil and 5 hours of labor for the AC. ($600 of labor costs before margin are included in the sale price).
The install team goes out and installs the AC/Coil change-out. Doesn't have time to go out on another job, so they come back to the office and you pay them for the remainder of the day.
Case Study 2
In the SBP Install Manager settings, you turn on day rate labor and set the working day range to a minimum of 8 hrs and a maximum of 10 hrs. The day rate labor rate cost is $800/day. (Fig. 1).
A customer quote is written for a Furnace/Coil change-out. The quote includes 1 hour of labor for the coil and 5 hours of labor for the Furnace; 6 labor hours total = $600 in labor cost. A day rate labor adjustment will be made by the app to cover the difference between the labor cost built into the equipment ($600) and the cost of a full day of labor ($800). The app will automatically add the Day Rate Labor Adjustment to fulfill the $800/day labor rate. This is a job cost adjustment, the app does NOT add additional labor hours.
The Day Rate Labor Adjustment (after margin) will display in the app in the Overall Job section. When building the quote a salesperson can choose to remove the day rate adjustment by tapping on the green circle. (Fig. 2)
Which scenario do you prefer? Use the day rate labor adjustment to ensure your true labor costs are reflected in the sale price!
Figure 1. Set standard day and maximum day hours and check the use day rate for labor box.
Figure 2. Day Rate Labor Adjustment displays in the App Install Manager