Why Set Up Labor Fees?
Labor fees account for the time and effort your team dedicates to on-site work or project execution. Based on your business model, these fees can be customized—either as hourly rates or percentage-based charges—to ensure fair compensation and clear communication with clients.
Learn more in the video below.
First up, you'll need to create a service for your Labor charges under Services in your Inventory. This ensures you capture the time and effort dedicated to on-site or project-related labor and enables better transparency in billing with clients.
Select 'General Services'
Enter the Service information (you can also select the pricing structure - flat rate, percent of order, etc.)
Most vendors create a new Line Item Group called 'Services' in their projects to include all of the services for that project, but you could just as easily add a Labor Service in the same Line Item Group as a Tent to show both your team and your client what the labor is being used for
Step 2: Choose Between Hourly or Percentage-Based Fee Models
You have flexibility in how you structure your labor fees. Here are your options:
Option 1: Hourly-Based Fees
Usage: Ideal if your team works based on specific hourly durations
Setup:
Add an Hourly Rate to your fee structure
For projects requiring less than a full hour, consider charging a minimum flat fee for up to 1 hour to account for partial usage
Option 2: Percentage-Based Fees
Usage: Suitable for scenarios where fees need to scale with the scope of a project
Setup:
Calculate labor charges as a percentage of total service costs or other relevant project elements (e.g., tasks completed or overall budget)
Final Notes
Tailor your setup to reflect the time and effort involved in labor tasks
Use Goodshuffle's inventory and billing tools to transition smoothly between different fee structures when necessary