Your Customer Success Associate will initially set up your business information during your onboarding, but we'd like to make sure you're up to speed on how adjustments can be made after that initial set up. Surely overtime your costs will change and you'll hire new techs, and you'll need to adjust your bill out rates to maintain your target profitability. The video below will walk you through making adjustments to your business information.
Breakdown of Breakeven vs Retail vs Standard vs Premium
- Breakeven Cost - all of your costs boiled down to a billable hour. Your pricing won't be calculated by this number, but your profitability will be calculated using this number
- Retail - also know as Value, is the discounted bill out rate that Service Agreement members receive
- Standard - this is where you'll enter the markup that you'll need put on the Retail rate to get to your Standard bill out rate
- Premium - this is where you'll enter the markup that you need to put on the Retail rate to get to your Premium (or overtime) bill out rate
Determining What Your Markup Percentages Should Be
Profit Rhino pricing is set up with Retail (Value) rate as the base level of pricing, and markups are put on that pricing to get to your Standard and Premium pricing. You'll need to determine what the markup percentage is in order to show the discount that you want to offer Service Agreement customers.
We've provided the cheat sheet below to make that easy. **I'd recommend right clicking on the below image and 'Opening Image in New Tab' so that it's enlarged.
SETTING DISCOUNTS CHEAT SHEET
Because we're using a markup, and we're going from a smaller number to a larger number, we need to use a multiplier that's higher than the discount we're providing Service Agreement customers. Using the cheat sheet, you can see that we'll need to use an 11.11% markup if we're giving customers a 10% discount.