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Byline swimming pool maintenance contract template
what's up pool service pros my name is Ryan today I want to talk to you about understanding your service rates and why it's important let's get started [Music] feel like understanding your service rate is important because you need to understand where your money is coming from and where your money is going if you don't know this information you can't increase the health of your overall business you may even take on stressful jobs that you don't need to take on pools and areas that you don't want to be in just to reach your bottom line numbers but if you do understand your numbers you can adjust your business accordingly to better suit you and to better suit the financials alright for this class we are going to assume that there are no w2 or 1099 employees working for us we are an owner operator servicing 80 pools on an average of $99 a month per service account that's gonna put our monthly gross income at seven thousand nine hundred and twenty dollars and at that point we're gonna start doing our deductions disclaimer remember this is one way to run your numbers but is not the only way so use this information to start a baseline for your own business and customize it to your own needs I hope you find this information useful and if you have any questions please ask so back to it alright so throughout each month we're gonna want to keep track of all of our numbers the first number that we're gonna want to track is our monthly service amount that's coming in we've already talked about this and have established that it's seven thousand nine hundred and twenty dollars additional to that we're gonna want to keep track of our expenses we have two different kinds of expenses we have our variable expense and we have our fixed cost expense our variable expense is going to include our weekly service chemicals are non billed or tool items as well as our gas and then finally we're gonna want to keep track of all of our fixed costs fixed costs are your monthly bills that you have to pay in order to keep the lights on or continue performing services on your monthly service accounts this is all the information you need in order to run proper numbers and understand your service rates your chemical cost is the amount of chemicals that you expense in any given month in order to properly service your customers pools and then your non building your tool items are the amount of money that you spend for your equipment to service the pool such as your poles nets brushes and testing equipment these are no additional charge to your customers so therefore we have to expense them towards the overall income of your service accounts now we are going to want to keep track throughout the month of these purchases and these expenses one way to do this is through the distributors Pio system so every time you go into the counter and make a purchase make sure you separate on each ticket what is service chemicals and what is your non bill items if you purchase something that is not directly related to your weekly service make sure you put that on a separate Pio another way to track this is to ask the distributor to print off a total monthly purchase report and then you can pick out what you spent on service chemicals as well as what you spent on non billed or tool items this is going to be our first and second deduction against our service rates now we need to calculate our gas expense this can be difficult we need to figure out how much gas we are using from your starting point like your driveway to your first pool throughout your last pool and then back into the driveway we need to calculate this on every route Monday through Friday for the duration of the month it is important to understand that we exclude any gas used outside of your weekly service route so here we have a route of 80 pools and Monday through Friday running this route for a month puts us at a total of $250 for gas and it will be our third deduction your final deductions will include all the expenses used to operate your business on a day to day basis typically these include general liability insurance auto insurance Quickbook payments auto loans and even your cell phone bill no two businesses are alike so this is going to be custom to your own business I recommend making sure that each one of these are visible so you can tell if any of these bills increase alright pool pros this is where it gets fun let's do our deductions and see what we're left with at the end of this month we know that we brought in seven thousand nine hundred and twenty dollars for our weekly service customers we expense three hundred and seventy two dollars for chemicals a hundred and twenty eight dollars for non billed items two hundred and fifty dollars in gas sixty two dollars in general liability insurance a hundred and nine dollars in our auto insurance thirty two dollars in our quick book payment three hundred and sixty five dollars for our loan payment and eighty nine dollars for our cell phone bill this leaves us with six thousand five hundred and thirteen dollars this number tells you how much your service route has produced for the month if you're not happy with this number go back and start making adjustments work on increasing your service rates or decreasing your costs to improve your bottom line now let's break these numbers down further take the final number and divide it by how many accounts you have for us it's six thousand five hundred and thirteen dollars divided by eighty accounts which leaves us an average of 81 dollars and forty-one cents this tells you how much on average each pool is profiting you if you take your average service rate and subtract your service profit this number will tell you what each pool on average costs you so here our service rate is ninety nine dollars and we know that we're making about eighty one dollars on profit that means that each pool is costing you about eighteen dollars a month to service it so now that you have all the information you can easily make predictions and determine the future of your company it is important to understand that you can increase service rates or the amount of pools that you service in any area and you could also work on decreasing the cost that it takes to service these pools but whatever you do it is absolutely important that you understand the number in your business to make better financial decisions I hope that you guys enjoyed this video and I can't wait to see or hear how you are increasing your profits this video is sponsored by primate pool tools use promo code pool pros 2020 to get $15 off just keep skimming
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