Six months ago, I received a call from a couple in the service industry about their business. They knew their business was losing money but just couldn’t put their finger on it.
Within the first 30 days it was obvious that one of their employees was not charging their clients the full bill when completing the service at the residence. The employee didn’t agree with the rates the owner was charging so he would not charge the full bill. He believed the owner of the company was charging too much, so he took it upon himself to fix the bill to an amount he felt better collecting from the client. But he still charged the owner for all the hours he worked completing the services, even overtime.
This employee did this for over a year. Yes, the owner did have several conversations with this worker about charging the full amount and taking their emotions out of the decision. He stated he would do what the owner requested, but shortly after he would go back to his ways.
Upon averaging out the numbers, this little decision the employee made cost the owner over $51,700 in the year he was employed. Luckily it was caught, and this employee was let go. The owner was shocked to see that the amount was that excessive.
What is it costing your business? Let’s talk. 337-849-2279
