In this manual, we will explain how to calculate Man-Hour Ratings in CLIPitc.
A Man-Hour Rating is the amount of time one man can take to finish a job while staying within the profit margins of the company.
Man hour ratings are unique to each company. We say this because each company takes different things into account when they set their financial goals.
CLIPitc has a built-in calculator to help you figure out the Man-Hour Rating as well. It does not tell you how to come up with the charge per job. That is where you as a company need to decide what is appropriate for each customer. This function will just tell you how much time your guys have to finish this job and still be within your companies financial goals.
Open up the Calc2 function, click on the Calc2 button in the job detail screen.
Here you will need to enter your charge per job amount and the $/Hour Goal.
The Charge Per Job is the amount you charge your customer. This is the amount that they will see on their bills.
$/Hour Goal is different than the Charge per-job because this number takes a much broader perspective of cost. Mainly the cost of running your company for an hour. So this number may include the trucks fuel, the cost of office employees, water bills, property taxes, and so on. As you can see, this number will most likely be larger than the charge per job. So when you take the Charge per job of $45 to the customer and the $/Hour Goal of $100, then you get the budgeted Man Hour rating.
Budgeted Man-Hours will be the amount of time one of your guys can take to finish this customers property and still be making enough money to keep the company running for an hour.
Once you have entered both numbers, just click "Replace In Job" to apply the Budgeted Man-Hours goal to this customers job.
In closing, you can see that the real number in question for your company is the $/Hour Goal. This feature is crucial for setting goals for your company and employees; thus it can be a powerful tool in growing your company's profit.