What is The Difference Between Quoted and Calculated Labour? (Labour Rates VS Technician Costs)
Understanding the difference between Services and Technician Costs is important for accurately quoting jobs and tracking profitability.
Services
Services are used when creating Bundles and are primarily designed for quoting purposes.
They help you estimate how long a job should take and allow your business to track Quoted Labour Costs before the work begins.
Example
A customer requests a ceiling light replacement.
As an electrician, you estimate that the work will take 1 unit of labour. When creating the Bundle, you add a Service with 1 labour unit.
This creates your Quoted Labour Cost and helps provide an accurate estimate to the customer.
Technician Costs
Technician Costs are not used in Bundles.
Instead, they are used to track Actual Labour Costs based on the real time technicians spend completing the work.
Example
When the technician arrives on-site, they discover that two ceiling lights need replacing instead of one because the hallway is too dim.
As a result, the job requires 1.5 labour units to complete, even though it was originally quoted at 1 labour unit.
The technician's recorded time is captured through Technician Costs, providing an accurate reflection of the labour required to complete the work.
Why This Matters
Tracking both Services and Technician Costs allows you to compare your estimated labour against the actual labour spent on a job.
Labour Comparison
Quoted Labour Cost: 1
Actual Labour Cost: 1.5
This comparison gives you greater visibility into:
- Job profitability
- Labour efficiency
- Quoting accuracy
- Technician performance
- Opportunities to improve future estimates
By understanding the difference between quoted and actual labour costs, you can make more informed business decisions and improve the accuracy of future quotes.
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