Profit margin goals per tech

I am curious what others profit margin goals are per employee. Or maybe a rule of total sales a tech needs to wash to make it make sense. I want to hire a tech this year, but I am concerned I would price myself out of the market. Do any of you have advise or experience in this area? Thanks

to replace yourself, as a helper, or as an additional revenue center? There probably isn’t a ton of difference in reality, but the number crunching takes an emtirely different track depending.

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Additional revenue. But your question brings up a good point I hadnt fully worked out. I would like him to take about 25% of my jobs off my plate to free me up a bit. So I could dig into the marketing deeper and work on systems.

Creating a job for myself was fun for a while. Im ready to learn how to own a business now.

Owner / operators have a lot of hats to wear; outside sales, inside sales, marketing, bookkeeping, equipment maintenance, purchasing supplies, estimates, scheduling & washing to name a few. Any hat you put on means the others are being neglected. It seems feasible to me that the costs of hiring a tech to do the washing could be offset by increasing productivity while focusing on wearing the other hats. Adding a second rig & trading my work boots for loafers has been tempting for a while.


This is why you always pay yourself as a technician, then separately as the owner. It makes the number crunching of replacing yourself a lot simpler. If you’re making $20/hour as a tech, and $xxx/week in owner income, then you know you can hire a tech for the $20 (or $20 net of employer taxes at least), and should still get your owner portion, so you know when it makes sense to do that.

If you’re looking at added revenue, then I assume you’re looking at added equipment (and the maintenance and fuel costs that go with it). Does it create/add to your storage needs. What does the added revenue do to you in terms of insurance, etc. What is the revenue increase, does it yield you as much in added owner income as you’ll give up giving up 25% of your own jobs? or will it in short order with you focusing on marketing & systems?

Put down all the things that you do know, and conservatively approximate those that you don’t, and see where that shakes out. Then you have goals to work towards in terms of sales goals and such as you do that role more.


This is exactly it!

This makes perfect sense, thank you!