Net Profit Per Hour Billing

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Overview

Net Profit Per Hour is a method of billing used to ensure profitability. The basic principle revolves around setting your Labor Rates appropriately. Once Labor Rates have been established, users simply charge the Customer for the time worked, plus any material and/or miscellaneous charges to determine the final price. The key to making this method work is keeping the price of labor hidden from the customer. To accomplish this, users should bill as Flat Rate or as Time and Material.

Setup

1. Download one of the following sheets to determine what you should be charging for labor.

2. Once you have calculated your labor rates, create them as Non Inventory Parts in FieldEdge.

3. Create a new Assembly Item called Resolution (or something similar).

  • To learn how to make an Assembly, click here.
  • Make sure the Print items in group box is unchecked.
  • Leave the Description field blank – this will be filled out when the Invoice is created.
  • Add the labor Non Inventory Part you created in Step 2 to the Assembly with a quantity of one.

4. Create a new Markup Code that sets the markup for all costs to 100% (which is what you paid for it).

5. Contact us to apply that markup code to all items and update their prices to the average cost.

Office Use

1. When creating an Invoice, add the Resolution code.

2. Click the Resolution hyperlink to see the components of that Assembly.

3. Add the parts you used to the Assembly. Note that their price is the same as what you paid for them.

4. Change the number of Labor Hours to show what you really worked on the job, rounding up to the next half hour.

5. Close the Assembly.

6. Edit the Description of the Assembly to show the customer what you did. This is the only thing the customer will see so it is important to give them details and build value.

Optional: You can also add any Discount Codes to the Invoice itself if needed for cash discounts, military discounts, etc.

8. Save the Invoice.

Mobile Use

1. When creating an Invoice, add the Resolution code.

2. Tap the Check Out icon.

3. Tap the Resolution part to see the components of that Assembly.

4. Tap Add to edit the parts you used to the Assembly. Note that their price is the same as what you paid for them.

5. Change the number of Labor Hours to show what you really worked on the job, rounding up to the next half hour.

6. Edit the Description of the Assembly to show the customer what you did. This is the only thing the customer will see so it is important to give them details and build value.

7. Close the Assembly.

Optional: You can also add any Discount Codes to the Invoice itself if needed for cash discounts, military discounts, etc.

9. Save the Invoice.

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