Your Customer Success Associate will initially set up your business information with you 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 over time your costs will change, maybe you'll hire new techs, and you'll need to adjust your bill out rates to maintain your target profitability. The article and video below will walk you through making adjustments to your business information.
When you log into Profit Rhino the Business Information tab is on the left hand side of the screen. That tab will take you to a screen where you can control a lot of different aspects of the price book and how prices are established throughout. This article will deal with setting your bill out rates. So we'll be clicking into the "Rate Management" section after you click into Business Information.
Inside of the "Rate Management" screen you will find a list of all of your business types. This is because within Profit Rhino you are able to have different bill out rates for different sections of your business. So if you charge more for Drain Cleaning work than you do Plumbing, you're in luck! So you will have to choose which Business Type you're looking to adjust first.
So you'll just have to choose a Business Type to start loading your business information into - the screen that appears will look like this:
- Labor - In this box we will enter your Breakeven Rate first. This is what you would consider to be the number that you need to make as a business to cover all of your overhead. So the number that you need to charge per hour to cover your labor expenses, building rent, insurance (all overhead), needs to be entered into this field. It is important to have this breakeven number accurate so that you can determine your Profit Margins. You will enter your bill out rate next. That is where you enter how much your charge a customer per hour for labor.
- Standard Rate - In the second box above, you will see your Standard Rate displayed. So that is how much you are charge a customer that is receiving your normal bill out rate, no discount or after hours charges involved
- Task Price Examples - In box number three you can check to see how your Bill out rate has effected the pricing of any task in the business type that you are currently setting the pricing. So if you are in HVAC setting your bill out rates, it might be a good idea to see how much a common capacitor costs with the bill out rate set the way you have it.
This is just the first tab in the rate management section. The next tab that we need to go over is your "Discounts/Markups," that is displayed below:
- In the first box is where you will enter your discount amount that allows you to get to your Value Rate. If you give a 15% discount on any job for a Service Agreement Customer, then you're numbers will look just like they do above. See note below for legacy Profit Rhino Customers**
- This is where you will see that discount that is entered in box one reflected in a numerical value. So if you're bill out rate is $200.00/hr, then you discounted rate is $170/hr.
- This is where you will enter a mark up to get to your premium rate. Most customers utilize this third rate for an after hours or emergency call rate. In the box above the percentage increase is set to 50%. That would reflect a time and half charge on labor alone for after hours work.
- In box number four you have the actual labor rate that would be charged out based on that percentage increase entered into Box number three.
The last two tabs that need to be discussed in the Rate Management screen are the Tax Setup and the Misc Settings.
The tax setup is pretty straightforward, and won't have to be filled in by every company that uses Profit Rhino. Basically, if you enter your tax information in this section, then that tax amount won't be broken out on the physical invoice at all. Any tax that is entered in the Business Information will be included in the flat rate price. So if you have to pay 8.0% tax on the cost of the equipment that you purchase from your vendor, we can enter an 8% markup on the cost of materials. So in that case on the "Part %" line you would highlight the cost box, and enter 8% into the numerical field. That means that you will recoup your tax expenses on the back end of your flat rate pricing.
The Misc Settings allow you to set a couple of interesting things in the price book. You can round your flat rate pricing on the top line of the Misc Settings. The second line allows you to set a minimum labor time charge for your flat rate price book. All of the tasks in the book are loaded with labor times that are realistic to how long a job would actually take your technician in the field. Some companies like to charge for at least an hour of labor on any job. Profit Rhino will now allow you to do that. If you enter 60 Minutes for the Minimum Time, then you, as a company, will charge at least 60 minutes on any job that you create a work order. Lastly you can make that "minimum time" effect addons as well. If you would like each line item chosen to charge a minimum amount of time, you can set that here.
Remember any information in this Business Information section of the book effects everything through the book. So any change made here will have a large impact on your pricing, but it is a quick easy way to change your rates with the market if need be!
** Legacy customers will have a little different setup for their bill out rates. Their base rate will be the Value Rate, instead of the Standard Rate as shown above.