CASE STUDY #3 - HAWAII PROPERTY MANAGEMENT COMPANY

Want to learn how we helped a client save over $6,000 a month from their monthly operations costs? Read this.

Most of what we’re doing for this client is involved with helping them save money on the back end of their company by lowering their operations costs. This client is based in a part of the country that has a tremendously high cost of living, they’re based in Hawaii. Although their needs are fairly simple, they were having a very hard time finding reliable people in their local market that are able to work with them for a price they could afford. So, let’s just look through our savings calculator to get an idea of how much we’ve been able to save them versus hiring locally.

So for this client they have 16 hours that they need coverage for. Which is basically two full shifts a day, seven days a week. So that’s one hundred and twelve hours every week.

When we first started working with them, they told us that they were ready to pay people locally eighteen dollars an hour to complete the tasks we do for them. Like I said, it’s a fairly high cost of living in Hawaii where they’re based out of. They were certain that they were not going to be able to find people that were going to be qualified for the tasks and were going to be able to consistently show up for less than $18/hr. They were going to have to have 4 people on staff and at the current rates that they’re at for each of their inhouse employees healthcare they were looking at about three hundred and ninety dollars of health insurance costs per person. For a seven day schedule with two shifts they were going to need to have four people on staff. So the total health insurance costs that they were going to have monthly for this amount of people was going to be about fifteen hundred and sixty dollars.

So that’s $1560 A Month In Health Insurance They Were Not Going To Have To Pay.

The next thing they were not going to have to pay is payroll fees. The payroll costs for each employee they have in house was fairly reasonable. They were looking at about thirty five dollars a person. So thirty five times four is about one hundred and forty dollars.

So that’s $140 A Month In Payroll Fees They Were Not Going To Have To Pay.

To house their team they were going to need to rent a small office. They were able to find a place that was very inexpensive for the local market. It was only five hundred dollars a month, but then they were also estimating that they were going to have about another hundred and eighty dollars in electricity costs. And then in addition to that to get a high speed internet connected there was about 70 dollars a month. So in total they were looking at about seven hundred and fifty dollars of facilities costs.

So that’s $750 A Month In Facilities Costs That They Were Not Going To Have To Pay.

So now let’s take a look at the totals and see how the numbers pan out on this. If they were going to do this all in-house, for every four weeks they were going to be having to spend about ten thousand five hundred and fourteen dollars for their operations team and the related expenses. That’s including the health insurance, that’s including the facilities costs, that’s including the payroll costs, and that’s including the hourly wages. That’s not including sick days or any other things like that. So, to break it down to the cost per hour when we add all these things together and divide it by the hours worked we’re looking at about twenty three dollars and forty seven cents an hour for every hour worked. That’s if there’s no overlap on the schedule and there’s always only one person working.

So, using the $23.47 per hour cost that their in house workers are costing them we can calculate the savings. Our prices are all inclusive, we don’t charge extra for facilities costs, for health insurance, for the electricity to run the computers or anything like that. Our rate is all inclusive. For their operations teams we’re looking at a rate of nine dollars and ninety seven cents an hour. They’re saving thirteen dollars and fifty cents for every hour worked.

That’s right, they are saving $13.57 for every hour we work for them!

Over one month a four week period we’re looking at saving them six thousand dollars.  To be exact, we’re saving them six thousand forty eight dollars, which is a pretty substantial amount of savings. When we go over a longer time span the savings pile up even more. When we look at fifty two workweeks. That’s a seventy eight thousand six hundred and twenty four dollars savings.

That’s right, we are saving them $78,624 annually!

So, when you’re looking at your bottom line. When it’s your company that’s a really big amount of money can be saved an applied to other things.

Let’s talk about what else we’re able to save them. In addition to the monetary savings, we’re also able to deal with a lot of the logistical issues for them. In addition to saving money on their on their wages and on their costs we are also able to save them some headaches and a great deal of time dealing with the logistics like scheduling, on boarding and training.

They don’t have to worry about their scheduling, we take care of it for them. They don’t have to worry about any of the onboarding, we take care of that too. Once we have the first person trained we easily can train the rest of the people on the team for them. If there’s anybody that has to leave and be replaced we can do the training on any of the replacements that are brought on. So, in addition to saving a tremendous amount of money they’re also saving a  tremendous amount of headache and logistical concerns that simply no longer on their plate of responsibility. They can continue to put their efforts towards growing their company, not just worrying about having to maintain the day to day operations. It’s really pretty much a no brainer in terms of what what we’re looking at with this. If you have things that you need done in your operation on a day to day basis sometimes having in-house employees is not the way to go.

We can definitely save you a tremendous amount of money. These prices that were used here are our standard prices of nine ninety seven an hour, please keep in mind that sometimes we do have special promotions available where you can save even more money. Please get in touch with me if you’d like to ask about any of the promotions that we have going right now, or if you have any questions about how we may be able to help you in your company cut down on costs and make the logistics a lot easier for you.

Jake - Founder / CEO
Jake Barefoot
Founder / CEO
Trouble Free Employees

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