Entrepreneurship, Customer Service and Shop Management
What this domain tests
Entrepreneurship, Customer Service and Shop Management tests costing, pricing, job cards, inventory, customer communication and basic legal compliance for a small appliance-repair business.
Core rules
- Job cost = material + direct labour + overhead. Overhead includes rent, electricity, tools, transport and waste disposal. Price with a clear margin, not a guess.
- Margin is a percentage of selling price; markup is a percentage of cost. They are not the same. Put the estimate in writing and get approval before ordering expensive parts.
- Use a job card for every appliance: customer details, complaint, accessories received, estimate, approval, tests, parts, warranty and delivery. Invoice parts and labour separately.
- Keep stock levels for common parts, record serial numbers of expensive boards and compressors, and manage cash flow. Check current GST registration thresholds and keep proper records.
- Customer service means listening, explaining the fault in plain language, giving a realistic return date and honouring warranty terms.
Worked example
A repair uses a ₹350 element and ₹150 labour. Overhead is 20% of that direct cost, and the shop wants a 15% margin on selling price. Direct cost = ₹500; overhead = ₹100; total cost = ₹600. Selling price = 600 / (1 − 0.15) = ₹705.88, rounded to ₹706. A 15% markup would give only ₹690, so the distinction matters.
Traps that cost marks
Quoting without checking the part price; confusing margin with markup; not getting approval for extra work; promising a delivery date before the part arrives; and giving no written warranty.