The Portable Sanitation Association International is once again presenting a panel discussion and workshop during the Feb. 24 Education Day at the Pumper & Cleaner Environmental Expo International. The presentation is part of an ongoing effort to help operators get a clear picture of their average cost to service a portable restroom. Understanding the cost per service will place the operator in better position to maintain profitability.
The presentation will look at the specific costs, which need to be captured and analyzed to fully comprehend the direct cost of service. It will also touch on the other costs normally associated with the operators’ business over and above the direct cost of service. These additional expenses, commonly called indirect, fixed or general and administrative, will be explained. In most operations these costs will vary extensively based on unique factors for each operating company.
As a major part of the presentation, three actual operating companies will share detailed expenses for the average direct cost of service. These unique companies hail from different parts of the United States. The makeup and operating parameters of each company will be explained. Participants will also have an opportunity to see the formula at work with actual operating costs and number of services performed for a specific time frame. This will give some realistic direction in helping operators complete their own forms.
The formula developed for this workshop can be applied to almost any service business. It can also be used to track the specific costs of service on a per-mile basis or on a per-hour basis.
In quite a few instances, we as operators do not really have a full understanding of our cost per hour to operate a particular piece of equipment. Sometimes we don’t have a clear understanding of the cost per hour of sending a truck and a service technician into the field. We are sometimes asked to quote a price on a per-mile or per-hour basis and we pull a number out of the air. The logical question is, where does that number come from and does it adequately cover our cost of service?
The desire of the PSAI is that this will be the beginning of a series of workshops designed to help operators worldwide develop into a more professional and robust organization. We are part of a vital and extremely important industry. Think of all the work that your organization is involved in. Without you, the individual operator, our economy would suffer greatly.
The panel will feature portable sanitation operators in a variety of other businesses, including septic pumping, industrial pumping, fencing, traffic control and temporary power, to name a few. The greatest attribute they bring to the discussion is that they collectively represent more than 100 years of operating experience.
Lee Sola is chairman of the PSAI Industry Standards & Legislative Committee.
