Are You Managing Your Projects or Are They Managing You?
CustomRetailer is looking for your best practices
May 2008 By Robert Ain
Survey
1) What percentage of your business involves some component of delivery or installation? ______%
2) If you take the above number, what percentage of that revenue is non-product related? For example, if your total gross revenue is $1,000,000 per year and the percentage that has delivery or installation component is 80 percent or $800,000, what percentage of this $800,000 is charges for delivery, installation, project management, drafting or programming? ________%
3) Do you bill for each of the following separately?
Installation ____YES ____NO
Project Management ____YES ____NO
Drafting ____YES ____NO
Programming ____YES ____NO
Other (please specify) _________________________
___________________________________________
4) What is your hourly rate or flat fee charge for each of the following categories?
Installation _________
Project Management _________
Drafting _________
Programming _________
5) Of your total non-product revenue, what is the percentage of revenue for each of the following categories?
Installation _________
Project Management _________
Drafting _________
Programming _________
Delivery _________
Project Management
6) Do you use in-house?
Project Managers ____YES ____NO
Drafting ____YES ___NO
Programming ___YES ___NO
Delivery ____YES ___NO
7) Do you use in-house or outside programming for automation and remotes?
In-House __________
Outside ___________
8) If you use Project Managers, at what level of sales is the project manager part of the team?
All jobs _________YES __________NO
Over ____________dollars
9) If you use a Project Manager, at what point is the project manager responsible for the job?
When job is initially being specified? _____
When proposal is submitted? _____
When proposal is accepted? _____
Commissions on Labor and Project Management
10) Are the sales personnel paid commission on any of the following revenue?
Installation _____YES _____NO
Project Management _____YES _____NO
Drafting _____YES _____NO
Programming _____YES _____NO
11) If the sales personnel are paid commission on the
following, what percentage of the revenue are they paid?
Installation _________%
Project Management _________%
Drafting _________%
Programming _________%
12) At what point do you pay commission on jobs?
When invoiced? _____YES _____NO
As progress payments are made? _____YES _____NO
Only when job is paid in full? _____YES _____NO
13) Are commissions paid to any other group of personnel for sales generated?
Installers _____YES _____NO
Project Managers _____YES _____NO
Drafting Personnel _____YES _____NO
Programmers _____YES _____NO
Other (Please Specify) _____YES _____NO
14) Any comments or additional information that will add to the value of this survey.
______________________________________________________________________________________
___________________________________________
___________________________________________
In speaking with several custom retailers over the past six months, there seems to be numerous examples of how project management is being performed for consumers and their installers.
Many custom retailers charge customers for non-product-line items using four separate charges:
• Installation
• Project Management
• Drafting
• Programming
Some companies charge for labor installation only, bringing in all the non-product charges under one line item in the proposal. Other companies charge for project management, drafting and programming separately in their proposals and invoices. I am currently reviewing a proposal for a $50,000 system that only lists installation charges with no additional charges listed for project management, drafting or programming. All these other charges are contained in the installation line item charge.
In real world terms, determining how and what to charge are important issues. Your business has many expenses that are totally related to the installation of products. These expenses include all the labor personnel payroll, delivery and travel expenses that are not retail related. For example, if you have an Accounts Receivable person, this expense is totally related to the labor component since the normal over-the-counter business usually has no A/R associated with it.
Your expenses also include the drafts people, programmers, project managers, dispatchers and installers that are necessary for you to conduct business.
At CustomRetailer we are looking for the best practices related to many parts of your business. In looking at Project Management, it is difficult to analyze some of the best practices since the responsibilities for project management and how the work is billed are inconsistent in comparing one business to another business.
Therefore, we are conducting the following survey using Zoomerang, a nationally recognized survey company, to compile the results. If you agree to participate, you are assured of the confidentiality of your responses since we will see only the data, not the providers of the information. We will share the results of this survey in a future issue.
If you don’t see the Zoomerang survey in your e-mail box, you may fill it out online at www.customretailer.net/survey/, or fill in your answers below and send this page to: CustomRetailer, ATTN: Stephanie Adamow, managing editor, 1500 Spring Garden St., Phila, PA 19130.
1) What percentage of your business involves some component of delivery or installation? ______%
2) If you take the above number, what percentage of that revenue is non-product related? For example, if your total gross revenue is $1,000,000 per year and the percentage that has delivery or installation component is 80 percent or $800,000, what percentage of this $800,000 is charges for delivery, installation, project management, drafting or programming? ________%
3) Do you bill for each of the following separately?
Installation ____YES ____NO
Project Management ____YES ____NO
Drafting ____YES ____NO
Programming ____YES ____NO
Other (please specify) _________________________
___________________________________________
4) What is your hourly rate or flat fee charge for each of the following categories?
Installation _________
Project Management _________
Drafting _________
Programming _________
5) Of your total non-product revenue, what is the percentage of revenue for each of the following categories?
Installation _________
Project Management _________
Drafting _________
Programming _________
Delivery _________
Project Management
6) Do you use in-house?
Project Managers ____YES ____NO
Drafting ____YES ___NO
Programming ___YES ___NO
Delivery ____YES ___NO
7) Do you use in-house or outside programming for automation and remotes?
In-House __________
Outside ___________
8) If you use Project Managers, at what level of sales is the project manager part of the team?
All jobs _________YES __________NO
Over ____________dollars
9) If you use a Project Manager, at what point is the project manager responsible for the job?
When job is initially being specified? _____
When proposal is submitted? _____
When proposal is accepted? _____
Commissions on Labor and Project Management
10) Are the sales personnel paid commission on any of the following revenue?
Installation _____YES _____NO
Project Management _____YES _____NO
Drafting _____YES _____NO
Programming _____YES _____NO
11) If the sales personnel are paid commission on the
following, what percentage of the revenue are they paid?
Installation _________%
Project Management _________%
Drafting _________%
Programming _________%
12) At what point do you pay commission on jobs?
When invoiced? _____YES _____NO
As progress payments are made? _____YES _____NO
Only when job is paid in full? _____YES _____NO
13) Are commissions paid to any other group of personnel for sales generated?
Installers _____YES _____NO
Project Managers _____YES _____NO
Drafting Personnel _____YES _____NO
Programmers _____YES _____NO
Other (Please Specify) _____YES _____NO
14) Any comments or additional information that will add to the value of this survey.
______________________________________________________________________________________
___________________________________________
___________________________________________
In speaking with several custom retailers over the past six months, there seems to be numerous examples of how project management is being performed for consumers and their installers.
Many custom retailers charge customers for non-product-line items using four separate charges:
• Installation
• Project Management
• Drafting
• Programming
Some companies charge for labor installation only, bringing in all the non-product charges under one line item in the proposal. Other companies charge for project management, drafting and programming separately in their proposals and invoices. I am currently reviewing a proposal for a $50,000 system that only lists installation charges with no additional charges listed for project management, drafting or programming. All these other charges are contained in the installation line item charge.
In real world terms, determining how and what to charge are important issues. Your business has many expenses that are totally related to the installation of products. These expenses include all the labor personnel payroll, delivery and travel expenses that are not retail related. For example, if you have an Accounts Receivable person, this expense is totally related to the labor component since the normal over-the-counter business usually has no A/R associated with it.
Your expenses also include the drafts people, programmers, project managers, dispatchers and installers that are necessary for you to conduct business.
At CustomRetailer we are looking for the best practices related to many parts of your business. In looking at Project Management, it is difficult to analyze some of the best practices since the responsibilities for project management and how the work is billed are inconsistent in comparing one business to another business.
Therefore, we are conducting the following survey using Zoomerang, a nationally recognized survey company, to compile the results. If you agree to participate, you are assured of the confidentiality of your responses since we will see only the data, not the providers of the information. We will share the results of this survey in a future issue.
If you don’t see the Zoomerang survey in your e-mail box, you may fill it out online at www.customretailer.net/survey/, or fill in your answers below and send this page to: CustomRetailer, ATTN: Stephanie Adamow, managing editor, 1500 Spring Garden St., Phila, PA 19130.
