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Saturday, April 15, 2006

Computer Service Repair and Expenses

In the computer service repair business, there are many expenses. If you can control the expenses of your computer service repair business, your profits will be increased. Increasing prices or decreasing expenses can show instant results for your clients and for your entire business. If you learn to control your expenses, you will better be able to predict and manage your cash flow. Expenses can be either fixed or variable, but you need to examine both in order to figure out how to make changes.

FIXED EXPENSES

Fixed expenses do not change, no matter what type or amount of computer service repair is being done. Auto insurance, property insurance, rent and equipment or furniture leases are examples of fixed expenses. You need to negotiate well with others when you are setting up these types of expenses because you will not be able to change them in the near future once you settle on a cost.

VARIABLE EXPENSES

Variable expenses change with the ebbs and flows of business. As your computer service repair accounts increase, so does your cash flow. Unfortunately, your cash flow will decline when business is slow. Travel is an example of a variable expense, and as a computer service repair technician, you will spend more money on traveling when business is booming. Changes in variable expenses will typically cause a chain reaction; for example, when you have more clients, you will need more supplies and will have to adjust this category as well.

REWARDING COST-EFFICIENT EMPLOYEES

You should make your staff members well aware of different ways to cut costs. An employee that sees his superiors controlling costs well will follow the lead. Computer service repair managers that offer incentives to employees that cut costs will help boost morale and improve performance. Think about offering vacation days, free lunches or simply praise and recognition.

Blogged By: Computer Consulting 101 Professional Kit