Travel Time or Mileage Charge? What Will It Be? [RE-wrenches]

[Allan Sindelar]

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Jeremy,
Our policy has worked pretty well for several years and doesn't generate
many complaints. We charge travel time at normal rates but one way only. The
key is that it's per installer. We also charge $.50/mile for a service
truck. A crew of two for a job an hour/40 miles away would thus be (1 hour X
2 people $X standard hourly rate) plus 80 miles (mileage is RT) X $.50/mile,
or $40. If asked, the travel time covers the crew's wages and overhead, and
the mileage charge covers fuel (now $.22/mile by itself with a big V8 in a
well-equipped 1-ton service truck) plus maintenance and wear. on the
vehicle. You must charge for travel of the in-town jobs are subsidizing the
boonie clients.

Many mainstream services charge a straight $2.00 or so a mile and don't
charge for time. It works out about the same. The only advantage to the
first method is when somebody lives 20 miles down a slow dirt road.

Hope this helps.
----- Original Message ----- 
From: "Jeremy Rodriguez" <allsolar at ris.net>

Wrenches,
Being fairly new to this industry I need some advise.
We are a small, very small RE business and have been charging travel time at
the same rate as the hourly rate. Recently I have been questioned on that
and am looking for success or failure stories related. I thought maybe
charge a flat fee for travel, gas, etc.  Its not uncommon for me to travel
60-90 miles one way, covering some 5 counties.

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