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-   -   What's a typical percentage for an inhouse repair tech? (https://www.acousticguitarforum.com/forums/showthread.php?t=455355)

funkymonk#9 01-06-2017 07:38 PM

What's a typical percentage for an inhouse repair tech?
 
I am just curious for those that have worked in a repair shop, the different methods of pay?

I would like to hear any methods but wondering if it is a per job percentage, what is a typical split?

mirwa 01-06-2017 08:23 PM

I pay wages, not profit sharing.

I tried profit sharing with one employee and it was sort of working well until he ruined a guitar ($3000) guitar, then he said thats your problem and left.

I would never profit share with anyone again, workers compensation, superannuation, holiday pay, they all become touchy and awkward topics.

Steve

funkymonk#9 01-06-2017 08:43 PM

Quote:

Originally Posted by mirwa (Post 5183930)
I pay wages, not profit sharing.

I tried profit sharing with one employee and it was sort of working well until he ruined a guitar ($3000) guitar, then he said thats your problem and left.

I would never profit share with anyone again, workers compensation, superannuation, holiday pay, they all become touchy and awkward topics.

Steve

So what was your profit sharing % if you don't mind me asking.
What do you consider a fair wage in today's market?

mirwa 01-06-2017 09:03 PM

For profit sharing I worked it out 60/40, I took the 60 percent, they took the 40, but I supplied all parts / tooling / premises. Example an 80 dollar job I got 48 they got 32. I also had to pay eftpos fees and taxes.

We tried a different percentage to start with and they had to supply tools and parts, but it kind of fell over way to quickly and held my customers up.



Steve

charles Tauber 01-06-2017 09:14 PM

I did repairs for a local music shop for 10 years. I took 60% of labor they took 40. I supplied parts, but for strings that they supplied and profited on.

Frank Ford 01-06-2017 10:34 PM

Tricky stuff to figure here, because situations can be so different.

That said, I believe I made more as a contract repairer (50%) than as a shop owner during the tougher years.

A music store is now such a classically unprofitable venture thanks to Internet pressure, that it's no surprise there's not a lot of profit to be shared. At my shop, we distribute profit sharing to all employees, as we can (meaning all the profit of the business most of the time), and we keep all informed about how we're doing along the way.

All employees in my shop work on salary rather than commission, and all get full benefits, which cost a LOT, dontcha know.

I doubt our business model can survive. . . .

mirwa 01-06-2017 10:54 PM

Quote:

Originally Posted by Frank Ford (Post 5184068)
I doubt our business model can survive. . . .

In our locality (Major City), 17 traditional music stores exist - Brick and Mortar Business's, 4 closed doors this last year, 1 the year before that.

It's hard for a retail store to make a profit and I do not believe people or even employees sometimes understand that.

For note, I am not a retail store, I run a commercial repair business that deals solely in repairs - Brick and Mortar Repair Business.

Steve

Slight Return 01-07-2017 02:32 PM

One of the stores my friend works at takes 30% on every repair. Another one he helps out only when they're backed up takes 25% on every repair.

Bob Womack 01-07-2017 05:33 PM

There are exceptions. My luthier/technician is really good. Really good. Besides repairs he also has his own line of electric guitars he builds. His tools are his own and he's been in the business for probably forty years. He takes work from all over the country. At one point he was a partner in a guitar shop but now he pays rent to a shop for his space rather than doing any sort of share.

Bob

redir 01-07-2017 05:57 PM

In my hay day I was doing repairs for 4 stores at one time and they varied. One only took 10% another 15% and the others 20%. I was lucky as most take at least 20% or more. After they all closed down because of the Internet frankly, I now make 100% but I can't make a living doing it.

I'm not sure if that is exactly what you are asking but that was my experience. I was not 'inhouse' per se. I picked up instruments and brought them back to my shop.

mirwa 01-07-2017 06:53 PM

Quote:

Originally Posted by redir (Post 5185024)
I was not 'inhouse' per se. I picked up instruments and brought them back to my shop.

Our business models are identical.

Steve


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