Frustrating Meeting
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GILL
Registered Posts: 31 Regular contributor ⭐
We have a Repairs Department that has a joint role, one to carry out repairs etc for customers with a charge out rate of £25 per hour the other is to carry out repairs etc for other departments with a charge out rate of £13 which is based on costs (taking into account Holidays).
One department (A) has negotiated a supply and fitting order (for a customer) and wants to use the Repairs Department to do the fitting (which (A) has organised full certificated training for) and the customer must have the equipment serviced by the Repairs Department twice a year.
The fitting charge is £650 and the internal cost would be £91, (A) suggested either Repairs charge them the £91 and £13 for any further warranty work or the full £650 goes to Repairs now but they would be reponsible for the warranty UNLESS there are major problems which (A) would be willing to negotiate over.
I have just had a meeting with the Head of Repairs Department who is insisting that they be allowed to charge (A) at £25 for the fitting and for any warranty work and that they also charge the customer direct (and therefore keep all the profit) for servicing .
I tried very hard to explain that departments cannot make a 'profit' out of each other but was told that he ' has to run his department like a business' and that I 'do not understand that any business has to assess the risks to future profits when taking on a contract'. Again I tried to explain that he couldn't have it both ways, he either makes a profit and therefore takes on some of the risk or he covers his costs and leaves (A) responsible for the risk.
His response 'well I don't want them fitting it then'.
At this point I apologised and said that I had to leave because we were not getting anywhere (1 1/2 hours after the meeting started) - his attitude has really frustrated me!
Am I being unreasonable? (despite the fact that it is policy not to make profit out of other departments)
Sorry its long winded but any advice before I have to go back in would be gratefully received.
One department (A) has negotiated a supply and fitting order (for a customer) and wants to use the Repairs Department to do the fitting (which (A) has organised full certificated training for) and the customer must have the equipment serviced by the Repairs Department twice a year.
The fitting charge is £650 and the internal cost would be £91, (A) suggested either Repairs charge them the £91 and £13 for any further warranty work or the full £650 goes to Repairs now but they would be reponsible for the warranty UNLESS there are major problems which (A) would be willing to negotiate over.
I have just had a meeting with the Head of Repairs Department who is insisting that they be allowed to charge (A) at £25 for the fitting and for any warranty work and that they also charge the customer direct (and therefore keep all the profit) for servicing .
I tried very hard to explain that departments cannot make a 'profit' out of each other but was told that he ' has to run his department like a business' and that I 'do not understand that any business has to assess the risks to future profits when taking on a contract'. Again I tried to explain that he couldn't have it both ways, he either makes a profit and therefore takes on some of the risk or he covers his costs and leaves (A) responsible for the risk.
His response 'well I don't want them fitting it then'.
At this point I apologised and said that I had to leave because we were not getting anywhere (1 1/2 hours after the meeting started) - his attitude has really frustrated me!
Am I being unreasonable? (despite the fact that it is policy not to make profit out of other departments)
Sorry its long winded but any advice before I have to go back in would be gratefully received.
0
Comments
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Sorry didn't make myself clear (how could I write so much and not manage that!) the £650 is for fitting and 5 years full warranty.0
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