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What do you think Joe should do?

The Cost Difference - Varntige versus an employee

Today I've created a fictional business called 'The Plumbing Store', owned by Joe so that I can provide you with an example of the value we often add over employing staff. 

'Joe' from 'The Plumbing Store' has an Office Manager working in his office 30 hours a week. Joe's Office Manager has decided to leave, and he has been looking to replace her but is finding it difficult to find the right person. Not just that but Joe doesn't even have the time to write a Job ad, complete interviews and especially train someone if he can't find a new Office Manager before his current one leaves. So, Joe comes to see us at Varntige.

We sit down with Joe and discuss the tasks his current employee is completing for him; he gives us the following list:

  • General Administration as the needs arise
  • Bookkeeping in Xero - Payroll for his plumbing team, GST, reconciling, sending invoices, debtor management and everything else!
  • PA / EA services - managing his calendar and basically keeping Joe on track
  • Answering the phones and dealing with the customers
  • Booking in jobs and scheduling his team of 3 plumbers

We then look with Joe at what this is costing him on an annual basis: 

  • Office Managers annual salary of $43,680 for a 30-hour week
  • Sending the Office Manager away on training courses each year $1,000
  • Annual Computer & upkeep costs $1,000
  • Christmas Present and Trip $250
  • Joe is also paying a separate company for Graphic Design services and to keep his website up to date about $2,000
  • Total Annual Cost = $47,930

As a comparison we show Joe our Platinum Package with Design Add On at an annual price of $41,400 + gst. On this Monthly package we can offer Joe the following:

  • 40 Hours a month to utilise in our Administration, Bookkeeping, Payroll, PA/EA and Design services
  • Phone answering services through a direct phone line especially for 'The Plumbing Store'
  • A VA Manager - that will be the main point of contact within our office
  • Our team available Monday to Friday, 9am - 5pm but Joe will only pay for the hours he uses
  • Roll over hours if not used within the month (for up to 12 months) 
  • Access to our whole team that specialise in the services we offer 
  • Excess hours available as required if projects come up

Joe will also have the benefit of:

  • Never having to worry about recruiting for this position again - providing consistency in the role
  • No paying for training
  • Not having to cover the Office Managers work for the minimum 5 weeks in a year for annual and sick leave
  • Us taking over the Design work for him - so he will only be dealing with the one company

We let Joe know that on our Platinum Package we should be able to get the same amount of work that Joe's Office Manager has been doing by implementing software and processes to help simplify things such as: a job management system for scheduling and online cloud software for storage. Along with an array of other things we will recommend as they come up. 

So, what do you think Joe should do? Let me know:


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