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  #1  
Old 01-06-2017, 06:38 PM
funkymonk#9 funkymonk#9 is offline
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Default 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?
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Old 01-06-2017, 07:23 PM
mirwa mirwa is offline
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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
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Old 01-06-2017, 07:43 PM
funkymonk#9 funkymonk#9 is offline
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Quote:
Originally Posted by mirwa View Post
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?
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Old 01-06-2017, 08:03 PM
mirwa mirwa is offline
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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
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Old 01-06-2017, 08:14 PM
charles Tauber charles Tauber is offline
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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.
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Old 01-06-2017, 09:34 PM
Frank Ford Frank Ford is offline
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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. . . .
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Old 01-06-2017, 09:54 PM
mirwa mirwa is offline
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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
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Old 01-07-2017, 01:32 PM
Slight Return Slight Return is offline
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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.
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Old 01-07-2017, 04:33 PM
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Bob Womack Bob Womack is offline
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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
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Old 01-07-2017, 04:57 PM
redir redir is offline
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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.
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Old 01-07-2017, 05:53 PM
mirwa mirwa is offline
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Quote:
Originally Posted by redir View Post
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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