My two cents:
As an independent entrepreneur, where reputation matters a lot:
1. Always install high-quality gear.
This is good for your reputation. Also, such
gear fails less frequently and is therefore
likely to be less expensive to you and your
clients in the long run.
2. Always try to recover all costs.
This can be tricky, as you said. It implies
you keep very careful records and can tell
what your actual costs are. This is not
particularly burdensome once it's habitual.
It is a tremendous benefit in planning and
charging intelligently.
3. Costs are recovered in 3 ways:
(a) By actual invoice/contract.
(b) By repeat business, based on current client
satisfaction.
(c) By new business, based on current client
word of mouth, references, etc.
Recovering all costs (maximizing your revenue)
is a tap dance involving all three of these
factors.
4. Always state terms completely and up front.
Stick to them even if occasionally painful.
Terms may include mention of "extraordinary
circumstances," which gives you some leeway in
dealing with particularly important clients.
Once you know exactly what it costs you (on average) to do an initial
installation, an in-warranty replacement, an out-of-warranty
replacement, or get a client back on the air in other situations, you
have the ability to set your fee structure to yield the net income you want.
You can also do such things as offer "service plans" with different
guaranteed response times, offer certain kinds of "free" services after
installation, or even maintain a modest inventory of replacement devices
that can be installed temporarily or permanently when necessary.
In bid situations, you can offer a menu ranging from "bare bones install
and walk away" to "guaranteed long-term 24-hour service on demand."
You can also specify different labor rates within any of the above
scenarios.
==============
You asked 2 specific questions: in-warranty and out-of-warranty
charging. If you're not able to do any of the above, I'd recommend:
1. For in-warranty work, eat all costs. Such costs should be covered by
your installation charge, so you're not actually losing anything. If the
installation contract specifies labor charges for these, then there's no
problem.
2. For out-of-warranty work, charge for labor at your usual rate. Charge
for any temporary or permanent replacement gear at a pass-through rate
or at a very modest markup. Suggest to your supplier that a small
inventory of "borrowable" gear would be a neat idea, or start one of
your own. If you have to buy/install a device while the original is at
the factory, try to work a deal with your supplier or the factory.
3. Always use your own judgment in the above situations. Some clients
may be more important to you than others. But be careful about setting
precedents; word gets around, sometimes to your advantage - and
sometimes not.
DaveC wrote:
> I do network installs in small businesses and homes.
>
> Occasionally, I have to replace a failed router, or such, during the 30-day
> warranty period my local supplier gives me for direct exchanges. Outside that
> period, it get sticky: the unit has to be sent to the factory for exchange,
> which necessitates me (or someone) buying a replacement to install
> immediately.
>
> How do y'all see such costs? Do you just "eat" the labor you spend replacing
> the unit? Or do you charge labor to swap out the unit (ie, warrantee the
> unit, but not the labor)?
>
> Comments from all specializations (audio, etc.) welcome.
>
> Thanks,
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