Im totally gutting my van and sorting though stuff getting ready to get all my systainers in. In doing so Im sorting through all my little mics. parts that dont seem like much but its the type of parts that we just "give to clients" and substantially add up over the year

Im usually pretty good about charging for anchors, but there are times when ive used 8 instead of the 6 I billed for. Or some BNC-RG59's etc or low voltage rings etc. I always build in "fluff" in the proposals but i know there has been times when ive exceded that, I think we all do.

Im sick of giving things away, i want to know how many parts i have at any one time and as we pull them off the van we scan them and charge the client accordingly. As i was sorting through all my small parts I cringed to think how many times I just "gave" the client something.

I know there are some of you that feel that padding the proposal to account for this stuff is OK, and others may feel like if we charge per part we are knickel and dimming our customers but the reality is we are "giving money away" and we are NOT A CHARITY.

Any help and thoughts on this idea is greatly appreciated!

Charge a percentage for misc parts depending on labor.
Use a design tool that will automatically provide all of the individual pieces in a sub assembly.
Use pre-made cables so you don't deal with as many loose parts.
Buy mounts and other products which include all of the common mounting hardware.
Standardize 90% of your offerings and just build everything you need into the package.
Retain all of the packaging and mark it on your "use list" during the job, this can be as simple as taking a photo with your cell phone, writing it on the box you are using, or just saving the wrappers in a pile then marking them all down.

Personally, I use all of the above, but I don't sweat the small stuff on a daily basis.
Tracking small, inexpensive parts can end up costing you more time and effort than you can recover. That's why mechanics and other industry use shop fees, job fees, materials fees, etc. The accounting costs just don't make sense for everything.

Charging for cables, wall plates, etc. is what you're supposed to do.  Charging for anchors and small miscellaneous parts is excessive and probably not worth the time it takes to do the calculations.

On top of that, I think if you try to charge for each and every minor little detail, the billing takes considerably longer, and exceeds the actual money that you're making on the parts.  

My recommendation?  Keep it simple. Charge enough to cover those types of parts and be done with it.  People like simple.  

People don't like being charged for ever little "minor" piece that's needed.  

If this happened to me with a service contractor in my home, he'd never be back in my home.  

I suppose you could break this down into the Law of Diminishing Returns..How much more time is spent charging for every minor detail, rather than just building it into the price. How much time is spent on that every day, week, month, and how much of that time could be used to bring in bigger projects that would pay dividends over the small parts you're charging for.


There's an old saying in sales/finance.  

"Pigs get fed, hogs get slaughtered" 

Like i said I already charge a percentage and also have a "hardware" line on the invoice.

I agree that writing this down for every peice we pull is stupid and a time waster. Thats why i though if there was some type of "mobile" barcode scanner thats easily reached we can scan them in/out.

Recently i was on a jobsite and had a plumber come in, after the job was completed he sat in his van for 20 minutes writing an invoice for each and every part, the client was billed for 25 pex rings, 12 connectors and per foot for pex. The plumber even billed him for the additional pex ring that he messed up on. Client didnt think twice and scheduled to have an outdoor spigot installed in the spring.

How are we ever going to be viewed as a true industry if we just keep giving away parts and our time. Most of us run our AV businesses as a hobby, we need to start running them like a business. Another reason why im bringing this up is because my accountant doesnt like the padding/hardware and was wondering what i can do to stream line this.

Like i said i am pretty good at nailing the parts but there are times when you just go and reach for something out of your parts bin and give it to them, maybe its not economical to charge per little connector even if you could scan the bar code, but larger things like mud rings, pass through's and things of that nature just seem to disappear from the bottom line. Im just a one and a half man shop but im growing and do not even want to think about it as you grow the number of employees the problem starts to become exponential

IDK it was just a thought

I understand, but pex fittings are between $10-20 each.  Yes, you should be accounting for those things on an invoice.  

But you said anchors.  I agree with anything that actually has a monetary value on it.  Wall plates, etc.  anchors and screws? no.  

Yes, there are mobile bar code scanners.  You can also use your iphone or droid. There are a few apps out there, there are also complete systems that cost thousands of dollars.

Hmmm.... [Link: shopkeep.com] would also be a good way to keep track of hours on the jobsite but at a monthly cost not sure it would help. Maybe its a pipe dream! lol

I don't think it's a pipe-dream.  You can certainly pull it off, it's just a matter of doing it for the things that matter, and making you more efficeint. If you have the ability to scan a part every time you have to make an unexpected trip to the van, then yes, it'll save you money, and make you money.  You just have to do it for the "right" parts.  And you're right, we all know what they are. Short HDMI cables, LV1's, optical patch cables, etc.  Those things definitely add up, and we all give them away.  

Yes we all give away some parts, HDMI cables, etc. Before I start any work the client has a 'ballpark' of what it will cost them. When I give that cost I cover myself on the incidentals because, after all it's part of what I will use in the work process. When all is said and done and I am getting paid I can usually tell the client "by the way I used an extra 2 HDMI cables and walllpates, but no charge those are on me". Who doesn't like getting their money's worth and getting a couple of tidbits for free.....leaves a good impression and creates referrals.
Of course, ymmv.

[Link: intelliscanner.com]

Have been thinking about this one for the guys to use on the van, but more for actual inventory items that they have on them at all times, like WAPs, extenders, etc. Still haven't been able to reconcile the cost/reward ratio though.

WHOA! that is dumb perfect. If you have a PC that you keep on the van for 199 bucks and QB integration it almost doesnt make sense not to. I think that would pay for its self pretty dang quick!

Thanks for sharing!

Check this out
[Link: barcodesinc.com]

Pair it with an iphone app ...wait, i mean win8 app, and you are good to go

Nice! im doing alot of searching and the intellescanner system looks like it fits my needs and our industries needs perfect!

That last sentence should be the guiding light here.

The web page says "Just scan the barcode..." and in accord with my observed rule that "just" in a sentence means many crucial things are left out, consider your box of screws. You want to have them and have enough. Is it even possible to barcode a screw? No? Then you make a page of barcodes and stick it on the inside lid of the screw box. And never make mistakes hitting the trigger to scan.

Sure, this can all be done. Just remember the cost of your time versus the cost of looking at a bin of screws and saying to yourself "I need more of those," then writing it on a to-buy list.

Brendon, let me/us know what you end up doing.
I'm like you, a one man shop. I have no idea how I'm going to handle things once I get employees and small stuff starts seeming walking off the van.

I do have a "Misc Parts" line item in QB and I 'wing-it' at the end of day for what the $ amount should be. I mean how do you figure the cost of partial label maker tape? However, at $15 for a 12' Rhino tape, that starts to add up.

I consciously give away few small parts (plate, connector, short cable), so typing them in QB is not worth it.
From proper business standpoint you should bill and credit everything; to a degree.
I have given things to clients where I did line item them (or sum them onto 1 line) and then given a one line discount.
Just last week I did a 30min service call (on my way home) and I billed $140 for a "1hr min service call", then gave $140 courtesy discount. Yea, client got a bill for $0; but I digress.

I want to have something that I can keep track of the small stuff, like the drywall screws, the RJ45 keystone jacks and plugs. I hate getting to the job-site and needing 5 plates, but only having 4. Then logging to SnapAV's site and placing $25 order and paying $12 S/H.
I don't want to keep track of each F-81 connector; just estimating that I only have 15 in the tray, so I should order some.
So for me it's more of a need for a shopping or reminder list, than an inventory accounting software.

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