Electronics Forum / Electronics / February 2005

Hi Brian,

In service industries (e.g. Electronics servicing) you are primarily selling
your time and your skills.  There is little or nothing to be made from
on-selling parts unless you impose one hell of a rip-off mark-up on the
spares.  If replacing a part is cheaper and more practicable for the
customer then replace the part.  There may be undisclosed reasons why the
customer wants the printer repaired rather than replaced by another model.
In this case the printer may well have been a $1000+ A3 or larger photo
printer that may be perfectly okay except for a blown $6 IC.  Your economics
are?  Junk the $1000 printer instead of a parts + labour charge?

For the US$30 bit you have to see Phil's reply.  In Phil's first reply he
suggested that Mark salvage the part "...from some old BJ printer on the
kerbside ?? ".

Well if I spend 20 minutes scabbing the tip or verge junk for the elusive
part I've just blown $30.  Even if I was lucky and found a discarded printer
with the part in it, there would be not guarantee it would still be a
worker.  It would be cheaper and more practical to order the required part
over the net or by phone even if the minimum order was $30.  I'm sure I
could use the same source to purchase other easily turned over spares to
make up the $30 minimum order.

As it is, Rob found a local supplier for the IC at $6.00ea.  Even better.

As for a "real business" definition.  One that makes a profit and provides a
real income for the owner(s) and employment for its staff.  Backyard toaster
techs like Phil can't be making a real living from a less than $50k gross
turnover per year as their sole source of income in electronic servicing.
Ask any certified practicing accountant.  Exceptions might be the business
is a part time venture or simply a supplementary income.  Remember the key
clue here is "GROSS ANNUAL TURNOVER" not simply an income from labour alone.
So in electronic servicing your gross annual income is based on the tax
invoices you write out to your customers.  They include both the cost of the
replacement parts + the labour charge + any other charges which may apply as
well as 10% GST.
10% of the GST associated with labour goes direct to the ATO.  GST on parts
and other services (e.g. courier or mail charges) can be recovered.
Take out your cost of plant (equipment and tools to set up your business),
lease on premises, insurances, energy costs (electricity, gas), vehicle,
vehicle running costs, telecommunications, bookkeeping, tax accountant,
income tax et al and there is didley squat left over from a gross annual
turn over under $50k.  Unless your overheads are close to nothing and the
cost of parts isn't in the equation then it is possible to carve a minimal
living out of an under $50k gross annual turnover business.  Unfortunately
electronic servicing isn't one with no overheads.

As for the "big picture", try seeing things from a Customer's perspective.
The example above of the $1000+ photo printer and the $6 part + labour cost.
If it was your printer would you junk it because it would cost about $56 to
repair?  Perhaps makes sense on a $99 Canon bottom of the range BJ but not
for a professional $1000+ job.

Cheers,
Alan

with a name like   PHIL allison, i`d say   he`s a chick with a dick.
phil - man
allison- woman

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Phil Allison is the ignorant bigot with a bad case of Tourette's syndrome.

Phil never understates anything.  If anything he colourfully decorates his
posts by recapitalising people's names (e.g. to "mark" instead of "Mark" as
a sign of insult and disrespect) and then capitalises the name he really
wants to call them like "Wog from Hell".

Phil's foul mouth and racist comments are well know in this and other
newsgroups.  He also has an unhealthy preoccupation with other male posters'
sexualities, genitalis and often referrers to female posters as hags and
whores.  Which makes one wonder what our Phil is really all about?

Rumours have run rife about his affairs with his blow up doll for years.
Perhaps there is an element of truth in it.  Is it possible that in his late
50's Phil is still a virgin or is he just confused about his sexuality?

Phil once complained he hadn't got any royalty, so I suggested he take the
bus down to Kings Cross or Oxford Street in Darlinghurst where he could meet
all the royalty he wanted to. Somehow he didn't see the humour in that
remark.

Cheers,
Alan