At a recent industry event, I heard a couple of contractors complaining that they had received feedback that their field personnel thought they, the contractors, must be making thousands, hundreds of thousands, or millions of dollars. The reason given was that the technicians see their checks, where they are taking home, say $30.00 an hour (or plug in any number you want). Yet when they invoice their customers, they see it as $160 per hour (again, plug in your own number). This is an issue we have heard about for years, and even if you aren’t hearing it, I’m sure your techs are thinking it.
Thirty years ago, some Sheet Metal and Air Conditioning Contractors’ Association (SMACNA) members were discussing this very issue and decided to develop a book that explains why the contractor has to charge what he charges while the employees make what they make. The book has been updated a couple of times and is now called “The Business Side of the Sheet Metal Business.” While it was originally intended for apprentices, I highly suggest that you read it and share the information with your entire team. Below is an example of what we do with our employees. You can use it as a framework for developing a presentation that works for your company.