Comparing Labour Rates

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Hourly labour rates are often a poor price indicator.  Labour rates are only one of many elements which multiply together to give a final price.  (Coles Refrigeration & Air Conditioning Pty Ltd has maintained a large customer base for 78 years because customers find our total invoice price, competitive, fair, reasonable and honest).

If another contractor’s hourly rate appears less expensive it does not necessarily follow that they are the more economical alternative.

Important considerations in addition to hourly labour rates:

Hourly rates are MULTIPLIED by hours.  Charged hours must be fair and reasonable for the work performed.  Hours should be reduced if times are not consistent with the work done.

By selecting the right technician for the job (technicians’ have difference areas of expertise and experience, e.g. electronics, electrical, mechanical, etc.) servicing times, and costs, can be cut down.

Technicians with greater SKILL and KNOWLEDGE, plus the availability of spare parts (especially in vans), also cuts down service times and costs.

SPARE PARTS mark ups.

HONESTY (changing only faulty parts requiring replacing and charging only materials used.  Refrigerant gas, for example, is a known problem area).

ORGANISATIONAL ABILITY to get the paperwork accurate and correct.  Systems to ensure; a timely repair, identify warranty and repeat call considerations, to select the right person for the job, check invoices and generally ensure accurate accounting, etc.

Your own administration costs are a consideration.  Querying invoices, taking credits, reconciling and adjusting, all costs time and money.

LONG TERM CONSIDERATIONS such as spare part and equipment life.  (A “cheap” job can cost plenty in the future if the job is not done correctly).

INSURANCE, LEGAL and SAFETY requirement.

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