Repost of HVAC company costs (jabs vers.)

[Bob Pietrangelo]

Subject: Re: RETAIL MARKUP ON A/C Date: 11 Feb 1998 18:27:37 GMT From: [e-mail] (Jabarco) Organization: AOL

Newsgroups: alt.hvac

The "right small guy" could even lower his labor if the consumer bought directly:

the state license the licensing bond truck payments truck insurance truck fuel truck repairs truck maintenance truck tires truck depreciation uniforms laundry tools tool boxes recovery equipment vacuum pumps torches test equipment & meters safety equipment (even if it is just a pair of shade glasses) liability insurance pagers phones inventory (even if it is just a 30 lbs. tank of R-22) utilities (even if you just use electricity to charge you cordless drill) EPA certifications (doesn't even have to be Universal) caculators (even if it is a pocket type) training small office supplies (even if he works out of his garage) accounting fees legal fees fax machine

1 filing cabinet 1 chair 1 old kitchen table (desk) advertising expense (even if it is just a business card from referrals) bank charges books & manuals depreciation expense dues & subscriptions medical insurance freight postage interest outside services pensions (even if you don't live long enough to see it) rent (even if it is a garage) waste & disposal loss on NSF checks (not everybody pays cash) inventory adjustments (things do just get up and disappear) bad debt expenses and many other expenses like hand cleaner, lubricants, rags, pencils, paper, AA batteries, shoe shine..........

the "right small guy" could even charge below the federal minium wage for his labor if the consumer bought directly:

Federal FICA Taxes (both the employee & employers share) Federal Umployment Taxes (FUTA) Federal Medicare Taxes Federal Income Taxes on wages

the consumer could probably get a better value if they bought directly:

State Income Tax (if their state taxes income) State Disability Insurance State Employment Training Tax State Umeployment Taxes

heck, the "right small guy" could end up paying the consumer for directly filing:

Federal Form 941 (quaterly) Federal Form 940 (the EZ one) Federal Form 8109 (monthly) State Form DE88 (monthly) State Form DE6 (quaterly) State Form DE7

don't forget the W-3 & W-2 forms:

1 copy directly to the Social Securtiy Administration 1 copt directly to the IRS for federal taxes 1 copy directly to the state for state taxes 1 copy directly for local taxes 3 copies directly to the "right small guy" and 1 copy directly for the consumer and ON TIME to avoid any interest and penalties.

Did I forget to list anything?

Oh yeah, the consumer could even correspond directly with the state and federal auditors when they have questions and they could keep the EPA Refrigerant Usage Log too just in case the EPA comes directly to their (garage) snooping around and asking questions.

BUT NO:

fancy buldings, no high priced secertaries, no fancy office, or other high

overhead items. >(the way it should be done).

Good luck to you Greg and all of us "small guys", when we try to cash in on all our hard work building our businesses and try to sell it directly to some other consumer. (even if its just a truck and some old tools)

In many cases he is even willing to install >>equipment bought directly by the consumer

Just show me the receipt directly from the supply house and I'll deduct the exact same amount from my proposal or invoice. (the way it should be done)

Enthusiastically, Jabarco, HVACR/PTST

Jabs listed these costs for a small one man shop. Imagine if you had several employees, an office staff, the extra vehicles, the training expenses.

THE CUSTOMER PAYS FOR EVERYTHING.

[<kjpro]

Whatever happened to ole Jabs?

[gofish]

didnt you hear? He hit the powerball lottery awhile back, now he spends his days jet-skiing on the Colorado River.

[<kjpro]

You have to be pulling my leg... why did he forget all his alt.hvac friends? :-)

[Bob Pietrangelo]

He was actually on here about a month or so ago.