Are you an appliance repair shop owner with a popular brick-and-mortar location and an active mobile business? Or do you run an automotive repair business that serves individual and fleet vehicle owners?
No matter how you help your customers get back up and running, download a free repair shop invoice template to present your clients and get paid.
How Should You Charge for Your Repair Shop Services?
As a business owner in the repair service industry, you want to charge customers effectively, not too much or too little. Whether you’re working from home, running a brick-and-mortar shop, or a operating a mobile unit, it’s a good idea to converse with customers to discover their needs.
Obtaining customer information helps you discover the best ways to serve them, as well as what the job should cost you. Using the job costing technique gives you an accurate picture of what it costs you to meet your customer needs.
In the repair industry, such as appliance and automotive repair, your options include charging an hourly rate or a flat rate for jobs. Either way, you should make sure to cover labour and parts costs. Choose what works best for your business plan, marketing strategy, and cash flow needs.
Billable labour costs on a repair invoice might include performing a brake job, oil change or engine tuneup on a car or repairing a faulty dishwasher. One way of handling parts costs is for you to buy them and let the customer reimburse you. That way, price increases don’t erode your profit. If you choose that option, it’s smart to factor in the cost of time you spend shopping for parts and materials, as well as a markup for profit.
Items to Include in Your Free Repair Shop Invoice Template
Generally, your repair service agreement determines what goes into your repair service invoice template, but some items are mandatory. You must inform customers when you’re applying the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) to their purchases.
It’s wise to separate your repair shop services price from any GST/HST you must collect. The Canada Revenue Agency (CRA) requires that you show the total HST rate if HST applies to the supply, but don’t show the federal and provincial parts of the HST separately.
If you repair vehicles in Ontario, your final vehicle repair shop invoice template must include:
– Your customer’s name
– Your repair shop name, address, and contact information
– Vehicle make, model, vehicle identification number (VIN), and licence number
– Vehicle odometer readings for when you receive the vehicle and when you return it
– A list of the parts you installed and whether the parts are new, used, or reconditioned
– Whether you used parts by the original equipment manufacturer
– The prices of the parts
– Total labour cost and how you calculated it, such as hourly rate, flat rate, or a combination
– Shop supplies beyond normal operating costs if you charge the customer for them
– Terms of the warranty you provide for each part installed and the labour to install it
– Total amount you bill your customer, which can’t be greater than 10% of the estimate, according to Consumer Protection Ontario
If your customer sets a maximum price they’re willing to pay for the repair and you agree, you can’t charge a final cost that’s higher than the agreed amount.
Invoicing Software to Increase Efficiency & Speed Payments
Presenting invoices to customers immediately after completing their repairs helps you maintain steady cash flow and avoids carrying customer debt unnecessarily. Computer software programs and mobile apps help streamline your invoicing routines.
QuickBooks Online Invoicing can help speed up the process of creating and sending invoices, saving valuable time. You get messages as soon as your customers see your repair service invoices, and they can pay you directly from the invoice.