How do you figure?

[inspectorwoody]

For those that are doing portable work and have a mileage fee, how much are you charging?

What things did you take into account when coming up with that amount?

Things such as:
--Your time/labor while driving
--Vehicle gas, insurance, maintenance
--Depreciation on vehicle

Since the word will get out that I have a mill, I'm sure the question will get asked if I'll do custom work so I'm pushing the pencil try to come up with numbers.

Any input will be greatly appreciated. 

[Dan_Shade]

I use the following to calculate costs:

fuel mileage
tire life
average miles driver per year
estimated vehicle life in miles
driving speed

fuel cost
tire cost
ins. Premium
vehicle cost
driving wage


I've attached a spreadsheet I made a few years ago.  Comments are welcome

[Magicman]

On jobs over 20 miles, I charge $1.00 per mile one way, one time.  It's simple and reasonable.

[inspectorwoody]

Thanks for the replies.

That is a niffty spread sheet Dan.

I'm working on something like that, but mine won't calculate like yours.  :D I need to study up before I can do that.

I've listed all the major wear parts on the truck with the mileage in which they last or are suppose to be changed along with the cost of labor to replace such part. I'll divide it out like you did Dan and come up with the cost/per mile.

Magicman-

What do you take into account with your $1.00/mile?  ???

Seems a bit low with gas what it is, plus your time etc.

[Skip]

I just use a standard setup fee of 75$ to cover mileage and time keeps it simple.

[pnyberg]

I work the same as MM, $1 per mile one way one time, except I charge for the first mile, unless someone is so close that I don't bother to charge at all.

I am not under the illusion that this covers the full cost of taking the mill to the job and back, never mind paying me for my driving time. 

My attitude is that driving to and from jobs is like commuting (don't tell the IRS I said that).  When you commute to a 'normal' job, usually your employer doesn't pay for any of the associated expenses, and certainly doesn't pay anything for your time. 

So in my mind the transportation charge is intended to offset some of the additional cost associated with dragging a 4000 lb mill around.  It also gives the customer some 'skin in the game', so the guy 100 miles away has to think a bit about whether it's worth $100 to have me show up.  But there's not really a lot of figuring that went into it, it's just a nice round number.

--Peter

[Peter Drouin]

Just cut enough wood in a day, by the BF , and you don't have to charge all that extra junk. 8) and why drag a mill 100 miles away, work closer to home :D just do good work, nice flat boards and the word will get out 8) you'll have all the work you can do. and if you have room cut some wood for sale , not a lot just some and see how it gos .I only charge for the wood I cut ( finish  piled on the ground) but thats me :D and I make a good days pay  8) 8) 8)

[Tom the Sawyer]

My travel charge is based on the MapQuest one way distance from my home to the milling site.  Due to fuel costs increases I recently went up to 1.50 per mile.  The vehicle I pull the mill with gets 10 mpg, the vehicle I use for my site visit gets 20 mpg.  With fuel around 3.80 per gallon, that's .19 per mile to the site visit, .19 per mile back.  .38 per mile hauling the mill to the site, .38 per mile hauling it home = 1.14 of the $1.50 to cover just the fuel cost.  I don't charge for site visits and I have made site visits that didn't result in a milling job but overall, it seems to cover my fuel costs.  The minimum travel fee is $25 which only kicks in on jobs less than 17 miles away.

[inspectorwoody]

Thanks again for the input.

I'm thinking something along the lines of Tom the Sawyer.

The lower mileage rates make me question where the money comes from when it is time to replace tires, other parts or the vehicle.

For those of you who deliever a product, do your charge along the same lines?

How about some sawing costs?

Interesting to hear what rates are out there and what goes into those figures as well.

I think I may have that part dialed in but not 100% yet.  :D

[paul case]

i am not portable. manual bandmill. $.30 bdft. anything very odd i charge $40/hr. $18 / blade if i hit metal.  pc

[Dan_Shade]

i seem to have missed vehicle maintenance in my spreadsheet.

I created my spreadsheet after thinking along the same lines as Tom the Sawyer.

If you're in business, you need to understand your costs.  If you're loosing money, you're better off staying home (or at least realize you're loosing money).