PPRuNe Forums - View Single Post - Cost of 100 hourly's
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Old 16th Feb 2014, 09:40
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onetrack
 
Join Date: Nov 2004
Location: Perth - Western Australia
Age: 75
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I think you will all find that running any repair operation in Australia is more expensive than running one in the U.S.
Wages are generally lower overall in the U.S., as compared to Oz (do U.S. LAME's get substantial gratuities for an inspection done well? ) - and business costs in general in Oz would be higher, because the U.S. Govt is more favourably inclined towards businesses.

An employer in Oz has 9% superannuation to pay, workers compensation costs are horrendous, and penalty and holiday rates are higher than in the U.S. (and I'm not begrudging what employees get - wrenchmen earn it, AFAIC).

Saratogapp's estimate of employee costs is exceptionally conservative - it's actually more like 100% of an employees wage. So, for a wrenchman on $35 an hr, the employers total cost is more like $70 an hr for that man.
Then business costs such as workshop operating costs (rent, power, water, miscellaneous taxes and charges) have to be added to that $70 hr.
Then a profit margin, usually aimed at around 12.5%, has to be added to that total.
Thus, the reason why $100 an hr is usually a minimum charge, for anyone who's lifting a spanner in a workshop.
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