Please use the following steps to compare income between NAC and any other Work Provider:
If you would like to compare NAC generated repairs to repairs supplied by other Work Providers, here is a relatively straight forward comparison exercise you could do that will show you that work via NAC is not only lucrative and will boost your cash-flow but compared to other Work Providers, will earn you more income & profit for the same work…!
This analysis and should take no more than 30 Minutes. To do this, you’ll need to know what we at NAC call a ‘Door Cost’. A door cost is an average fixed cost involved in getting your toolbox to a door, door costs will vary between businesses and will be determined by fuel, staff etc etc. Here’s a Door Cost calculation example:
Let’s say I’m a Sole Trader & working from home, if I knock on average 80 Doors per Month for to look at or complete a repair to an appliance and I pay £300 for my van (Inc Insurance), I spend on average £150 on fuel, my PLI Insurance is £30 PM, my internet & phone bill is around £50 PM and my Gas Safe Registration is about £30 PM. That means in total I would spend around £560 PM on my fixed costs to get my toolbox to those doors. If I divide my fixed costs by the amount of jobs that I do, I end up with an average door cost of £7.00
When you have a door cost, simply follow the steps below:
Step 1: Determine Figure A – Total Income: Take the last say 10, 20 or 30 repairs you’ve done for any other Work Provider and add up all the income these repairs generated for your business, including any parts fitted where you make a profit (If you do not make profit on spares, you can leave them out of this calculation as it will zero out anyway) so you end up with a ‘Total Income’ figure.
Step 2: Determine Figure B – Total Cost: Then work out your total cost to do the repairs, which will include all spare part purchases and your total door cost (door cost x however many jobs you are comparing against).
Then simply minus Figure B from Figure A and there is your profit from the repairs. Payment Terms: 30 Days +, Risk of future debits, non-payments or short payments: Yes, Your business out of pocket if the work provider goes bust: Yes.
Now for the same repairs but via NAC:
Step 1: Determine Figure A – Total Income: Using the identical repairs, work out Figure A by using NAC quoted repair charges (Get in touch if you need a pricing matrix) then apply ALL the spare parts you fitted at what would have been your FULL RRP so you end up with a ‘Total Income’ figure.
Step 2: Determine Figure B – Total Cost: Add your door cost together with any part purchases and our booking commission for each job so you end up with a ‘Total Cost’ figure.
Then simply minus Figure B from Figure A and there is your profit from the repairs. Payment Terms: Immediate – Directly to you from the customer while on-site, Risk of future debits, non-payments or short payments: No. Your business out of pocket if the work provider goes bust: No.