At the end of the fair, it goes on lowering costs and increasing revenues. Within this article we will do an in-depth analysis of all the costs that a workshop has to incur. In fact, there are fixed costs and variable costs. The former are those that must be supported unequivocally and by all # workshops… while the latter vary according to the extent of the services, the number of personnel and the activities performed. An example? Rent is a fixed cost, while employee continuing education is a variable cost because it depends on how many employees are on the payroll.

• Rent
• Utilities
• Special equipment
• Highly qualified personnel
• Insurance
• Administrative management
• Warehouse management
• Disposal of special waste

Rent
The first cost is clearly the rent. In fact, it is not possible to receive a customer without having a place… and therefore to pay a rent. Clearly, if a person owns a building, he clearly has an advantage. The rent, or in any case the purchase of a room, is certainly one of the most important items in the costs of a workshop.

For important cities, such as Milan or Rome, the rent can be as high as € 2500 per month. There are clearly no limits for these types of costs, as they also vary by location and size. A large space in the city center can certainly have a higher cost than other suburban areas of the city.

Clearly, the greater the influx of people in that street, the greater the likelihood of having customers and therefore the greater the cost of renting or buying. Let's also not forget that the workshop must have a bathroom, and an office area, which clearly takes away space from the workshop area.

… And the sign, don't we want to consider it? That too! Such as the design and installation phase of any totems outside our officina to clearly indicate the presence of the activity.

Utilities
After paying the rent, or the purchase of a room, we clearly have to pay the utilities. It is impossible to have a workshop without paying for electricity, but we must not forget the water and the telephone either.

The latter can be eliminated if we use the internet via mobile phones with the latest generation routers.

In any case, the use of professional tools implies the payment of the electricity bill. In the event that we could use photovoltaic systems, the impact on costs is clearly lower. The reality is that not all buildings can install photovoltaic systems for various reasons. They can be areas of architectural value, and therefore must be exempt from the installation of photovoltaic panels.

Special equipment
Special equipment, of course, must not be lacking in the workshops, and they have very important costs. We can think, for example, of machinery to carry out diagnoses, but also of normal compressors, or a whole series of sets of cables and screwdrivers.

These aspects do not concern only the initial phase, but the entire life of the workshop. It is in fact the constant investment in new equipment to keep up with the times

Car lift bridges are clearly not cheap, and they too face wear and tear. Special equipment must be constantly monitored and overhauled, as the more complex ones are subject to rapid deterioration due to wear.

It is also about the safety of the mechanics, as a bridge is absolutely a special piece of equipment to be very carefully considered in maintenance. They cannot be missing, not even shelving and well-resistant worktops. In this case the cost is lower in the purchase.

Finally, let's not forget the smallest “special equipment” in the workshop… or the test plate. Mandatory by law, it is used to carry out tests on the road, after having carried out the repair.

Highly qualified personnel
The fourth main cost that must be incurred is clearly that of the staff. We certainly cannot think of creating a workshop with a good staff, when the staff is not qualified. Especially when it comes to electronics, staff training is essential.

Regardless of whether an already trained person is hired, or internally trained, this cost can certainly become an investment for the company.

In addition to the initial training… let's not forget the constant training that must be sustained, not just technical.

In fact, personnel must never be completely considered as a cost, but as an investment. The more qualified the staff, the higher the quality of the interventions. For this reason, our customers will be much happier in being able to communicate with qualified personnel.

It is very unlikely that a person who meets an unskilled mechanic will return to that workshop. It is not so much a question of observing the mechanical problem as such, but of observing the entire area of competence. In fact, it may happen that a single aspect may conceal much wider problems, but which can only be seen by highly qualified personnel.

Insurance
When we think of insurance, we often only think of our car insurance. However, an entrepreneur must also consider the costs of personal and facility insurance (fire, theft, etc.) and the coverage of third party cars in the event of accidental damage (poorly performed repairs or atmospheric events).

These aspects are important to consider, as they allow the owner to sleep peacefully, protecting large sums of money from any requests for compensation or unexpected costs to be incurred for theft or atmospheric events.

Administrative management
After analyzing all these costs, we must not forget about the administrative management. Clearly the latter requires not only time, but also the purchase of computers, as well as printers or paper.

This part must be placed inside the office and has out-of-pocket costs, which cannot be eliminated. We must also not forget the use of external services, such as accountants, which allow us to make ends meet and find an advantageous tax position for our turnover.

Costs for software, like a whole series of costs linked for example to the music rights of a radio, can cost several hundred euros (depending on the size of the venue).

Warehouse management
The warehouse, let us remember, is an aspect that is rarely evaluated, but which instead presents significant costs. Each workshop needs to record the movement of products, in order to monitor cash flow and return on investment.

Spare parts must be loaded, unloaded and billed. The advice is clearly to use specific software, which allows you to manage the inventory in a complete and simple way. The goal is to always have perfectly aware of all the warehouse stocks in real time.

Disposal of special waste
Finally, let us not forget the tax for the disposal of special waste. The Italian State contemplates a regulation on this aspect, which is very rigid, and which provides for important sanctions if it is evaded.

There is also talk of arrest for the most serious cases, as well as penalties of several thousand euros. In fact, every single product must be disposed of in the best way, in order to have a zero impact on the environment.

Here are the main costs that must be incurred by a workshop. And in your workshop… what is the cost that has the greatest impact and that you would like to lower?

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