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Trip Charges

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  • Trip Charges

    I have been debating the addition of local trip charges. I do have a fuel charge for service in neighboring towns, although it may not be high enough. Currently that number is a dollar/mile one way.

    I'm thinking for in town $7.50 and out of town $1.25/mile. With the ever increasing cost of fuel I hate to do this but something has to give.

    What are some of you doing and what are your thoughts on trip charges?

  • #2
    Re: Trip Charges

    I charge my hourly rat√© one way which in turn works out to √* dollar √* minute.

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    • #3
      Re: Trip Charges

      I go 90 cents a mi both ways & labor both ways

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      • #4
        Re: Trip Charges

        I've got a small work radius so no trip charge. Farther out the first hour charge is more, I just don't call it a trip charge. Trip charge just sounds like a turnoff, haven't had any negative feed back from customers. If I drive out lets say 25 miles one way its usually a bid job, so all mileage is figured in. I don't usually break bids down ,turn key price.

        wookie

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        • #5
          Re: Trip Charges

          I don't charge for mileage either, cause most of my customers are within 10-15 minutes from where I start. However, those trips outside of that, we add on to the cost of the job.

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          • #6
            Re: Trip Charges

            We don't add fuel charges or any other add on's. I have found over the years that people want a turn key price. No surprises, no add on's just one price. I have also found that if you break it down into materials and labor, many people will complain that your making too much money. They have no idea of what overhead is.
            Frequently asked questions about pumps and tanks.

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            • #7
              Re: Trip Charges

              Our commercial customers are charged $65.00 an hour on a trip charge. We break that up in increments, basically rounded to the nearest minute. Unless you have zero traffic in your area don't charge by the mile. Here in SoCal it can take you an hour to go twenty miles, so charging by the mile will put you in the hole real quick. To benefit our better customers we work with them on this. If a service call is not a dire emergency, ie the building is flooding, we schedule the service so that we avoid as much traffic as possible. In some cases we will reschedule a tech just so they go out very early am or late pm just to avoid the potential traffic delays. A great example of that is our military customers out in the deserts. If we send a guy out at lets say 7am it will add anywhere from 2 - 3 hours of travel time just because of the traffic. If we send him out at 4am we shave off a minimum of 2 hours.

              We also charge a fuel surcharge that kicks in when Diesel fuel goes over $4.00 per gallon. Generally $10.00 to $15.00 per service. If you think thats harsh, don't. Next time your in one of your commercial customer accounts, for example a restaurant just ask them if you can look at there food supplier invoice. Most of the food suppliers I know are charging anywhere from $25.00-$45.00 per delivery extra for fuel.

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