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Re: Serious staff issues resulting in unprofitable business.
I've honestly no idea.
I know he asks them to tidy up and keep the workshop area clean but this largely goes ignored.
The efficiencies I have worked out on the hours charged. If they work an 8 hour day on a 4 hour job then they are not standing around in that case. They would be simply 50% efficient.
I looked at some more figures with him last night and even if 2/3rd of a working day was charged out (66.67% efficiency) then it would be still losing money. This suggests that either the hourly rate is too low or the type of work which is coming in is too labour intensive and allows for inefficiencies. If he quotes a job to take 2 hours and it takes 5, he still charges 2. This seems to be a fundamental flaw in his business plan.
The thing is everything was fine in the past so it makes you wonder what exactly has changed.
Originally posted by wales01man
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I know he asks them to tidy up and keep the workshop area clean but this largely goes ignored.
The efficiencies I have worked out on the hours charged. If they work an 8 hour day on a 4 hour job then they are not standing around in that case. They would be simply 50% efficient.
I looked at some more figures with him last night and even if 2/3rd of a working day was charged out (66.67% efficiency) then it would be still losing money. This suggests that either the hourly rate is too low or the type of work which is coming in is too labour intensive and allows for inefficiencies. If he quotes a job to take 2 hours and it takes 5, he still charges 2. This seems to be a fundamental flaw in his business plan.
The thing is everything was fine in the past so it makes you wonder what exactly has changed.
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