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Note: Digital migration is the replacement of the Analogue set top box and installation of an adjacent telephone line for use by the set top box.
This is an estimate of income from the new rates set by the Foxtel contractors
Income based on digital migration only, 8 hours per day, 5 days per week, for 48 weeks.
INCOME
Install = $59 less $9 material = $50x4 = $200/day x 5days x 48weeks = $48,000 x 90% completion rate = $43,200/year
EXPENSES
business expenses / year
In our pocket
Income $43,200 less expenses $19,000 = $24,200/year or $465/week
This is below the legal minimum wage.
February 2004.
A total of 58 separate job locations had been allocated, 7 were cancelled or not home and will not be included in these calculations although they did incur costs (phone, time and travel but not typically travel_etc). I will base the working month on the remaining 51 job locations even though 6 additional job codes were paid for onsite work (add outlet or mount and cable payment for reconnects) this is a fairly typical spread and will consider these normal additions. February had 4 full weeks of which I worked 20 days.
Total of work order
Contract $4,634.80 GST $463.38 Costs $2581.80
$463.8(GST total)-$258.18(GST costs) = $205(GST difference)
($4634.80(Contract)+$205(GST difference))-$2581.80(Costs)=$2258(Profit)
Break down
51 job locations / 20 days = 2.55 jobs/day $2258 (Profit) / 51 job locations = $44.27 profit/job 2.55 jobs/day * $44.27 profit/job = $112.90 profit/dayFigures used in calculations
720mins (4 weekly * 3hrs returns trips for stores) / 51 job locations = 14mins
5mins phone + 10mins paperwork including pay checking = 15mins
Paperwork Tax + insurance_etc = 5mins
Van afternoon restock 10min / 2.55jobs/day = 4mins
Van maintenance (cleaning and general 1hr weekly*4) 4hr/ 51jobs = 5mins
Travel (120mins/day*20days) / 51 job locations = 47mins
Total of off-site time per Job = 90mins
These figures, particularly travel are very conservative as I live quite a long distance from my work area.
Job Breakdown for the month of February 2004
Fox Job Job Description Contract GST Costs NP 3 Non-paying (2nd box p/u, etc) $ 0.00 $ 0.00 $ 0.00 NW 7 No Work Performed $ 0.00 $ 0.00 $ 0.00 RAO 1 Recover Additional Outlet $ 17.50 $ 1.75 $ 15.00 RCD 4 Standard Reconnect $ 165.60 $ 16.56 $ 82.40 RCO 4 Reconnect no dish no LNB $ 405.60 $ 40.56 $ 322.40 RNC 3 Reconnect No Cable $ 105.00 $ 10.50 $ 30.00 RNM 2 Extra Payment No Mount in Situ $ 80.00 $ 8.00 $ 44.00 SCL 2 Service Call - Change LNBF $ 76.00 $ 7.60 $ 30.00 SCO 24 Service Call $ 945.60 $ 94.56 $ 360.00 SDG 13 DTH Installation Gutter Mount 65cm $2410.20 $241.02 $1456.00 SDT 1 DTH Installation Tin Mount 65cm $ 177.40 $ 17.74 $ 106.00 SOP 1 Disconnect - Decoder & Smartcard $ 17.50 $ 1.75 $ 15.00 SSM 1 DTH Installation Softfit Mount 65cm $ 185.40 $ 18.54 $ 106.00 SUP 1 Additional Outlet Same Visit $ 49.00 $ 4.90 $ 15.00Costs whilst not explained here are fairly accurately base on averages over time and seem to be close to the mark.
Times / Code
CBS - 105mins CBS * 15 = 1575 mins
DS - 15mins DS * 2 = 30 mins
SC - 25mins SC * 26 = 650 mins
CH - 40mins CH * 1 = 40 mins
RNC - 30mins RNC * 3 = 90 mins
RNM - 20mins RNM * 2 = 20 mins
RCD - 50mins RCD * 4 = 200 mins
RCO - 75mins RCO * 4 = 300 mins
Time Total = 2905 mins
Conclusions
2905mins / 51 job locations = 57mins/job
57mins / job + 90mins off-site = 147mins
($44.27 profit/job / 147mins/job) * 60 = $18.07 profit per hour
($4634.80(Contract) / 7495mins (2905 mins+
(90mins off-site * 51 job locations))*60 = $37.10 per hrs pre-costs
Other things to consider
The workload is lower than most techs but this does not affect the figures relevance, as they are base on individual work locations. However February did contained a higher than normal ratio of SCO's to other job types due to the 4v upgrade, which does artificially raise the profit to cost ratio, which in this case is running at 49% (this being the profit side). Typically it's around 43% but this current pay, due to the large volume of CLR's, came in at just 39% which would make our final figure here approximately $14.47 per hour.
Not forgetting
We have not factored in sick leave, annual leave, public holidays, long service or super, nor included time for the correct safety procedures (do you wear a harness to perform a SCL?), nor does it include the normal workers compensation cover (does your insurance pay a reasonable ongoing benefit should you become a paraplegic? Or would it pay if you were not following the correct safety guidelines?).
For these reasons, companies reckon employees' time well above their hourly rate. Can we afford to be any different? Are you guaranteed work tomorrow? Is it easy for you to get a home loan? Are your weeknights free to do with as you please? Can you afford to be sick?
I believe the responsibilities and difficulties of operating a small business considerably out weigh our current pricing structure, a structure that is to become worse under digital. Whatever action we decide to take we needn't fear any retaliation from our contact companies, because quite frankly, if the digital pricing is not changed our endeavours are no longer viable and to walk away would prove the most profitable solution. This is not an angry statement; as you can see the figures, it's a straightforward business decision.
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