Electronics > Repair
How much should I charge my customers for component level repair?
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nukie:
Charging high rates is surfire way to kill your business. I used to repair stage equipment. Usually its just one or two passive components failure or a simple common power transistor or diode. I did it for a mates company and I charge a minimum of $10 for those easy repairs, actually taking apart the casing took longer than repairing when you have parts on hand.

In no time, mates of mates starts flooding me with all sorts of amplifiers and I was learning a lot from the circuits but definitely working for charity. It was great it worked for them because it takes two weeks to three months to return the equipment from the service center and they get slap a $250 minimum charge. I only take a few days to get it up and running or if its beyond my skills I just say no fix no charge. I stopped doing it since then because I am not certified electrician and I am concern about the legality.

So it sounds like I am spoiling the market but I am sure there will be someone out there who will be willing to work for less. So before you build up your customer base, keep the charges down. Unless you made your name in the industry and master in your class, you can charge whatever high skyrocket price the customer can afford. The quickest way to pricing is to start off with the target monthly salary you wish to earn then add your running cost to it. Finally predict(hardest part) how your business will strive monthly. Some months are slower so you should average it. This also applies for many other 'services' type businesses. Certain trading business starts off losing money(investment) but business providing services should start making profit asap. I also hope you have insurance cover in case some jackass decides to sue you for damaging their equipment.

The australian gov websites provides a lot of information regarding 'working for yourself' business, you should check it out, there's lots of guidelines and standards for various types of businesses. We are all tax payers which money goes to researching and gathering these information you should make use of what you have paid. Unfortunately not all information are available online the Rudd gov, wants you to pay for them.
David_AVD:
Public liability insurance is a must, especially if you want to do any work on-site.  A lot of clients require you to have a $10M policy these days and you may have to show a Certificate of Currency to them before getting any work.

Be careful about having just one customer, as the ATO (Australian Tax Office) may rule that you are an employee of that customer, not a subcontractor.  This can get messy real quick.

We have a $50 minimum charge (+ parts of course) irrespective of whether or not the repair was viable.  The no-fix, no-charge policy can attract a ton of crappy customers with crappy equipment.

Whether or not a high hourly rate ($200 seems high) and free pickup and delivery works for your (possibly niche) industry I don't know.  I prefer to have travel, site and workshop rates - all billable.
David_AVD:

--- Quote from: DavidDLC on July 11, 2013, 07:55:40 pm ---
--- Quote from: elcomtel on July 11, 2013, 01:57:21 pm ---I was asking for advice. Not criticism.

--- End quote ---

You claim 25 years of experience, you should not be asking this question.

--- End quote ---

I think it may be a case of 25 years of electronics experience, but little business experience?  Plenty of talented people go bust when they go out on their own and have to manage all the (not so) fun stuff (IAS/BAS, insurances, etc).
EEVblog:

--- Quote from: elcomtel on July 11, 2013, 01:16:36 pm ---- $200 an hour for the first 2 hours.
- After 2 hours the rate changes to $50 an hour.

--- End quote ---

$50/hr for the other hours is too low IMO. At least $75 I reckon. $200 is not unreasonable for on site work for the first two hours.
I know a lot of people that add an "on site" surcharge.

How should I charge my customers for my component level repair services?


--- Quote ---Later I will be asking about how much to charge for electronics design work.

--- End quote ---

That's harder, because companies have a habit of moving the goal posts when you quote for a whole "job".
I always preferred small set jobs defined in writing. e.g. lay out this one PCB
I'd never take on a whole job, e.g. design and build an entire production test system to test X widget.
For design work in Oz you'd be typically charge $100/hr. $150/hr if you know you can get away with it.
EEVblog:
Also, unless you earn well over $100K taxable income. i.e. after all your expenses, forget about becoming a pty ltd company, just stay a sole trader. There is no rea tax benefit unless you are over that figure.
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