Mileage charges

[theironoracle]

This is exactly one perfect comparison! I am cheaper and faster usually than moving equipment to and from a jobsite with a lowboy. in regards to this it is directly related to the size of the machine, this is why I discourage my customers from having me work on there highway legal trucks but sometimes they still want me to do the job......TIO

I meant to hit reply with quote to post #16

 

[Moonlite]

I have a 98 Chevy. One of the customers I am referring to told me I needed a newer truck. I told him stop trying to get me to lower my price and I can get one then I will have go up on price so I can make the payment

 

[FSERVICE]

im going to add my 2cents worth to this... I have several older customers that just rant & rave about having to pay a fuel surcharge/mileage charge, my fix for them just raise the hourly rate to cover it they are happy it don't show up on the bills & im making the same money!!! these are regular customers that don't shop around for better prices/offers.

 

[02Dmax]

I have a 98 Chevy. One of the customers I am referring to told me I needed a newer truck. I told him stop trying to get me to lower my price and I can get one then I will have go up on price so I can make the payment

You should ignore anyone telling you that you need a newer truck while also telling you to charge less. I've had old trucks and new trucks ans someone will always have a comment about one or the other. I have what some call a "flashy" truck now and I'm $80 an hour from the time I leave the house til I pull in my driveway. I'm constantly turning down work just because I literally don't have time. Fact of the matter is, its your business and good mechanics will always have work. Drive what you want and charge what you want (within reason) and your customer list will sort itself out.


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[heymccall]

adkhomeboy, you lost me on last post, mileage charge is to cover cost of service truck, without it fuel,reg, ins, tires, ect adds up fast, how do you cover them?

If you're a dealer, $55 an hour to cover the road mechanic (wage, pension, unemployment, etc), leaving the other $48/ hr to cover the truck, resulting in the Cleveland Brothers $103 an hour.

Even at $70/hr to cover the mechanic and associated costs, that still leaves $33/ hr to cover the truck. Assuming 1500 billable hours a year, that's $105k a year toward the mechanic, and $49,500 a year toward the truck.

 

[overworked]

It's a for profit business., at 180,000 for a new truck that rotts out in 4years, there is no easy answer, if they send out a guy in a pickup truck, won't be equipped, customer bitches, send out big truck for a loose wire, customer bitches, ??? What's fair?

 

[scheirerequip]

i myself am a one man show small time operation i charge 50$ per hour within 40 miles from the time i leave home for breakdown or unscheduled repair i work everyday i have 8 customers who keep me very busy i will not work for out of towners unless payment is made at the end of the job too many deadbeat companies who run there operation on the backs of us little guys i tell em if you want credit call cat thanks to the dealers or the stealers as i call them i do well

 

[overworked]

Good policy, your better to get paid up front from out of towners,.

 

[Moonlite]

I only give credit to a select few. Cause they normaly cut a check as soon as they get the bill in the mail. So it's only a wk before I get paid and they keep me busy. All of the ones that I don't know or only get called to once in awhile. I make it clear. When jobs complete I get paid. I used to send bills out to everyone at end of month. Well getting burned on $20K in 2 months stopped that.

 

[Old Doug]

I only give credit to a select few. Cause they normaly cut a check as soon as they get the bill in the mail. So it's only a wk before I get paid and they keep me busy. All of the ones that I don't know or only get called to once in awhile. I make it clear. When jobs complete I get paid. I used to send bills out to everyone at end of month. Well getting burned on $20K in 2 months stopped that.

When i was doing it full time years ago i had 3 jobs almost in a row that i didnt get payed for and 2 were guys that i had done work for several years and never had a problem with. It seams that every one around here is liveing day to day bridge burners.

 

[scheirerequip]

one time i did make the mistake of assuming i was gonna get paid when done with a job in 6 days that the stealers quoted 30 - 60 and i was told oh no we cant write checks here .....texas dose that in 90 days ....118 days later i got my check "wait i hammed this (emergency job out) in 6 days and your gonna stiff me"???

 

[Dualie]

if i know a company is slow pay i quote a higher rate

 

[simonsrplant]

I am an independent field service repair guy. I charge a 2 hr minimum for anything with in 49 miles. No mileage charge. Beyond 40 miles I charge $3.00 a mile one way. No hourly charge for driving. My hourly time starts and stops at job site. A few customers say $3.00 to much. Your thoughts please?
That's 2 hr minimum for anything within 40 miles

When I first started on my own here in the uk I charged one way, works well locally, but after a year, it became clear that bigger work, further afield meant I needed to restructure what I bill. When I did restructure, none of my customers complained. Ended up charging door to door labour and door to door with mileage, like you I had a minimum, which was just over two hours, I added that to the travel time. I could travel an hour each way, for five minutes on site and end up charging the customer 4 hours plus mileage. It's not unreasonable to ask that. Customers want support at their convenience, it costs. If you can deliver the goods, customers will pay.
Simon

 

[Old Doug]

I have been working on my taxes and one place that i work for they have a shop and most of the tools i spent $600.00 on gas to get their to make $ 7000.00.

 

[Joeyslushr]

Im just a lil guy tryin to get going on my own and I charge 45$/hr from when I leave the house until I stop for the day. According to my figuring the truck costs are absorbed by the full rate drive time. I've never had anyone b!&ch about it yet, most are more than happy with that. But they should be being I'm wwway cheaper than the rest

 

[theironoracle]

What are you driving? It's hard to drive much of anything for $45 per hour. My family minivan costs like $35 per hour! That doesn't include any kind of wage. Don't sell yourself short the people you are working for are in business to make money be sure to charge enough so you make money......TIO

 

[jpool]

I have been around all kinds of service businesses , I was always told you never want to be the cheapest guy around. You can be fair without being the cheapest. Do good work and being honest is the most important thing. I have a road service company I do after my day job and I stay busy . There is plenty of work to be done .

 

[Joeyslushr]

I have just a one ton four door ford with a crane, welder, compressor and most of my tools piled into. I figure on about 45mph average, 10mpg (usually I get 12-13). That's 4.5 gal x 4$ fuel is 18$ hr for fuel. All my insurance lumped together I have figured down to 4$/hr. Even figuring at 2$/hr I'm more than doubling my maintenance costs. So that's 22$/hr x 2 (both ways) is 44$/hr. That's how I had it figured.
But I'm just starting out and most shops around here are 65$/hr. So being I'm not paying for a building and all that, I thought that seemed fair. I was thinking I'll go up to 50 this spring and maybe a lil more each year until I have a good grasp on what I think is fair.
That's must be pretty fancy minivan...lol

Jpool- I've heard that before from guys that do it on the side but I'm doing this everyday making about 55k last year. I'm happy with that. If I wanted to make a fortune I'd go back to traveling. And the one thing that gets me is side job guys talk a big game but never seem to want to quit and try it themselves. It's quite eye opening when ur the one writing the paycheck and depending on yourself. Not being an a$$ just sayin

 

[theironoracle]

Jslusher, you have a very good start to those numbers, keep adding, tires, brakes (a heavy ford eats rotors and pads every 40k at least), and you don't have a wage in there yet!

You don't have truck devaluation in there? Follows are a few facts about equipment devaluation, i don't make this stuff up it is not opinion! Never the less it WILL create some discussion

1) on average the first 3 years of a class 8 trucks life is its cheapest per unit cost!
(Heavy equipment is even a bit longer)

2) therefore on average you can not operate a used truck or piece of equipment cheaper than a new one per unit cost!
You can make it feel like by things like doing repairs yourself and not charging full rate for it.

3) you must use a new piece "full time" to have it be the cheapest per unit cost

4) now to figure cost of a service body ford take new price $60k then residual value after 5 years $30k ( 1/2 of new in 5 years generic but close on average for everything with tires or tracks on the planet) this truck has 125,000 miles on it because it was used "full time" 60 miles to job each day 220 days a year

So 60000-30000= 30000/125000=.24 per mile the add in your tires, fuel, insurance, repairs and maintenance and wage this is the minimum you should charge!

Now by no means if your not using your truck full time you can not buy a new truck and cover its cost from your revenue, but you used less expensive truck will actually cost a bit more than new

Also if your uncomfortable with the risk of paying for a new truck you shouldn't, for many years I chose to make a little less money hourly but slept easy at night not having that huge payment, especially the first year or two while your upside down in its value. Now I sleep better at night knowing I am not going to have to work on my own stuff when I get back from a service call or on my days off and only have to write a check every month.

There are exceptions to everything listed above but they are averages...stepping off the podium now class is dismissed....TIO

 

[Scrub Puller]

Yair . . . Joeyslushr.There are lots of ways of looking at any given situation and accountants will send you cross-eyed with numbers on "depreciation" and "sunken costs".

I am really in no position to comment but the way I see it if you were a wage slave working for the Cat or Deere dealership with (say) a one hour commute you would probably be driving a similar truck . . . with your system at least you get paid to drive to work.

The thing is, you have made a start and are establishing a customer base, now is the time to look at increasing your rate. I agree that without the overhead of a shop you can afford for your rate to be a little lower.

I have found though that the main thing is the paperwork . . . there is no excuse these days for almost illegible hand scrawled greasy invoicing.

No need for fancy formatted invoice books though, just a detailed printout of dates and work performed with a materials list and labour.

All the best with it.

Cheers.