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Casual Articles - Overhead Charges and Flat Fees Or Pay As You Go
Many manufacturers of truck wash equipment make their equipment look really nice some of the units in fact look rather pretty, powder coated and well designed, but they totally miss the point. Too often people manufacture stuff but never use it in real life. Why does this happen? Well for a couple of reasons, many of the companies that make this stuff are in the car wash equipment industry, not the truck
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for over
A well-planned and properly executed marketing program should include a sufficient commitment of capital resources to an on-going, well executed advertising program. Yes, this includes your business.Businesses spend too many dollars, however, on ads that simply will not result in increased sales and profits. These ads are poorly conceived, poorly written, poorly designed, poorly targeted, and poorl
As management debated this, we realized that plumbers or dentists do not proportionally bill us whether we use them or not, but we pay for services rendered. In our personal finances, we carefully weigh the need for spending money on repairs and upgrades. It seemed much better to "pay as you go,” or PAYG, for project and maintenance work performed by service groups. If equipment breaks down, manufacturing can count the cost of repairs, and justify upgrades if the frequency of failure and cost of the repair warrant it. If new upgrades are desired, then it would be evaluated and justified on a case-by-case basis. The return-on-investment would be calculated. There are always exceptions, such as for city services where a flat fee to all residents is adequate since road and sewer maintenance costs are easier to predict.
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for overs
How to write a thank you letter to use after an interview, a phone interview, or even to someone who passed your name on to a hiring manager is an art that is not taught as often as it should be by placement services and others who help job seekers with finding jobs. They always cover the basics of resume writing, interview preparation, cover letter writing, how to create a reference sheet, and even how
As management debated this, we realized that plumbers or dentists do not proportionally bill us whether we use them or not, but we pay for services rendered. In our personal finances, we carefully weigh the need for spending money on repairs and upgrades. It seemed much better to "pay as you go,” or PAYG, for project and maintenance work performed by service groups. If equipment breaks down, manufacturing can count the cost of repairs, and justify upgrades if the frequency of failure and cost of the repair warrant it. If new upgrades are desired, then it would be evaluated and justified on a case-by-case basis. The return-on-investment would be calculated. There are always exceptions, such as for city services where a flat fee to all residents is adequate since road and sewer maintenance costs are easier to predict.
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for over
Customer service is increasingly seen as one of the most valuable uses for a commercial World Wide Web site. Your Web site is available on a 24 hour, seven days a week basis. So it is well worth exploring ways in which your customers can virtually “serve themselves," without the need for overtime staff, or lengthy voice mail procedures. James Feldman is President of JFA, Inc., an online business
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for over
It’s about who you know, NOT what you know! But, what if you don't know anyone? Then what are you suppose to do? You suppose to go hunting and make contacts. When finding any job the first rule is to make looking for a job your JOB!Finding a Job Is Your JobIf you are unemployed then you should put aside at least 6-8 hours of each business day for applying to jobs, making contacts, interv
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for over
IntroductionWhen viewed from a high level, the cost of poor quality data can affect a company’s bottom-line in two ways. First, there’s the cost of scrap and rework, and second, missed opportunities.An example of scrap and rework costs might be when an agent errs in recording a customer’s address details, and consequently a marketing premium is sent to the wrong add
With an overhead fee approach, the customer calls the service group and the work gets done. Costs do not enter into the equation, nor do they appear to affect the bottom line. New projects are done with little or no incentive to hold costs down. There are no apparent consequences for overspending, misdirecting resources, or for plant mal-investment. Overhead fee-based services can generate a "blank check" mentality.
PAYG leads to responsible use of services by the manufacturing groups, and better ensures an efficient delivery of services. The manufacturing group would have to justify upgrades to the process instead of just calling for help. The service group would have to give a quote and be held accountable for project cost, scope, and schedule. Manufacturing would cost counts against the profit.
Underlying this PAYG concept is a desire to be a good steward of resources entrusted to us. This process should come with accountability, transparency, personal ownership, and rewards of personal gain or punishment of loss. An annual incentive bonus for earnings can be very effective. With PAYG we can better determine profitability and make rational decisions based on need and return-on-investment. Strive to connect rewards for the diligent, and consequences for the irresponsible. Of course, all businesses have some risks that are hard to control, but properly managing controllable expenses gives us an advantage. Succumbing to formulas and fixed overhead charges must therefore be minimized. It is tempting to not PAYG because it is easier, but resist it. Flat fees only give the illusion of stewardship. We should handle
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