I have been asked to do some milling at a customers property about 75 miles, one way from my home. I'm just wondering what you think would be a reasonable fee to charge for going that distance? It sounds like I could be there for 2.5 to 3 days cutting so I would leave the mill at the customers house until the job is complete. So I guess that would be 6 trips. I want to be fair to him and myself. I don't mind eating up some of the time for a job this size.
John
Come up with an acceptable "fuel surcharge". With fuel being $4 a gallon, 20ยข a mile wouldn't be out of line, though you must make the decision.
why not stay there over night and have him put you up or pay for it. Earlier start and way less long drives for you.
It's all opportunity cost. You could be making money doing something else, chargem.
Ironwood
I too just finished 4 days of cutting at a job approx. 3/4 of an hour away.
I charge for travel time to take the mill out and return it to the yard but I feel I have to eat the travel time to and from home daily.
I worked 7 1/2 hours each day and wanted to work longer hours to cut a days work but the help they had did not work longer and I don't off load boards!
Some times you have to go with the flow and eat the costs of being in business
Robert
Good advise, Robert.
I made a work circle around the house of 50 miles and told folks who were farther than that to put me up. Even those rules get bent sometimes. It's advantagous to know of someone close to him that also does custom sawing. Telling him of a "competitor" to make his life easier, will make him remember you. that's good advertising too.
i'll bet your vehicle cost, including towing costs, are close to a $.75/mile, depending on your vehicle. I made up a spreadsheet if you guys have excel to figure things out...
let me think what you guys think about the spreadsheet. the numbers can be somewhat surprising when you really crunch them out.
I had a customer that I did a lot of sandblasting for . He had a rental building 65 miles from me that he wanted some blasting done on. I tried to get him to hire someone close . He would have none of that . He said he had seen others work and he had seen mine . Anyway he said that he would pay my travel both ways nomatter what I charged because I was going to blast his building. I did blast his building.
this is one of the tougher aspects of "business" it for real costs you money to drive your vehicle, and the cost is a lot more than the cost of fuel. if you're driving great distances for jobs, then you need to figure out if you can take the hit for transportation if you aren't charging mileage or increasing your rate to cover it.
If a customer bulks at your mileage rates, then take another look at how you're calculating, if you're in the right, either let it go or tell him to take it or leave it! :)
I charge a fee of $1.50 per mile to get to the job, I get home on my own dime. Very few of my jobs are multi-day, those that are, there traditionally has been no added mileage, but that may change with fuel at $4.40+ here. I have always figured if the job was that large, I was going to make a fair amount of money on it anyway. However, I was once told not to take business advice from someone who didn't have two nickles to rub together, so if are so inclined to agree with that sage and heed that advice, you may wish to discount my entire post. :-\
Dan_Shade,
Checked out your vehicle costs spreadsheet. You are cheating yourself on insurance costs per mile. Your formula is B13/B7/2. It should be (B13/B7)*2.
yeah, you're right. i must have fat fingered that one when I made the sheet up....
I corrected the original attachment.
Dan,
I like your spreadsheet. In my calculations I add a repair and maintenance cost also. Just spent north of $2000 for a new transfer case, and run all synthetic lubricants. It adds up.
Mark
I just rented a moving van that I was charged .79 a mile plus I had to fill the tank on the return. Not sure if this fits the equation anywhere, but just a bit more info...