Travel time for commercial chain store repairs

[Mule]

We have a commercial client that is talking to us about traveling to other locations to their retail stores....They asked me how far I wanted to travel....and my response was, "however far, its benificial for both of us"...we've only had one call so far, and payment was good and realtively speedy. Travel was 20 minutes both ways and I charged them for the travel at regular rate.....but was a short distance compared to my question here...

I see "out of town" electricians all the time in our town, working on chain stores, and Im just curious how they bill for travel.....

So my question to the forum, How do you charge for this type of travel? do you have a minumun amount of hours for this type of work? or do you have a reduced rate for travel? or charge one way? both ways? or what???

So, what about a job that is 1hr travel, 1hr repair, and 1 hour back home....what are these type companies accustom to paying?

 

[BryanMD]

So, what about a job that is 1hr travel, 1hr repair, and 1 hour back home....what are these type companies accustom to paying?

Come up with a travel per diem rate independent of the on site rate. Impress on them that it's to their advantage to have a full days work somewhere than to try to dispatach you hither and yon like a delivery courier.

And whatever you charge per hour start as high as you can now. As soon as they start giving you X hours a month they'll want to start shaving the rate for "volume".

Make the quality and reliability you can offer be the conversation... not the petty niggling breakdown costs of a job ticket.

 

[Mule]

Come up with a travel per diem rate independent of the on site rate. Impress on them that it's to their advantage to have a full days work somewhere than to try to dispatach you hither and yon like a delivery courier.

And whatever you charge per hour start as high as you can now. As soon as they start giving you X hours a month they'll want to start shaving the rate for "volume".

Make the quality and reliability you can offer be the conversation... not the petty niggling breakdown costs of a job ticket.

Im not really interested in driving down the road for reduced rates, besides I dont want to wear out my brand new tires..........What is a typical percentage?... travel per diem compared to a regular rate...

 

[aline]

I used to work for a service company that would send me on out of state service calls.
Most were about a 2 hour drive each way but sometimes I would get one that was a 5 hour drive each way.

One time I drove for 5 hours to get there, looked the problem over and adjusted a pot on a soft start controller for a crane. The problem was fixed within 15 minutes and then I drove another 5 hours back. I was supposed to spend the night but when I called the shop and told them I was done they wanted me to come back the same day so I could go on another call the next day.

I have no idea how they billed these jobs out though. I never saw the invoices.
Sorry.

 

[BryanMD]

..What is a typical percentage?... travel per diem compared to a regular rate...

As you've seen in these threads there is no typical for anything.

as to the per diem deal... in the example you gave before you had 2 hours (travel) plus vehicle expense plus misc to cover before you even picked up a tool... whatever you need to charge for those things PLUS a premium (an extra hours time? two?) would be the minimum to charge to justify leaving your regular customer base area for most of the day... Ya know?

In order to service them 3 or 5 towns down the highway you aren't going to be able to serve your other customers that day... that risk to your core business has to be compensated for.

 

[rt66electric]

doorstep to doorstep

doorstep to doorstep

We have a commercial client that is talking to us about traveling to other locations to their retail stores....They asked me how far I wanted to travel....and my response was, "however far, its benificial for both of us"...we've only had one call so far, and payment was good and realtively speedy. Travel was 20 minutes both ways and I charged them for the travel at regular rate.....but was a short distance compared to my question here...

I see "out of town" electricians all the time in our town, working on chain stores, and Im just curious how they bill for travel.....

So my question to the forum, How do you charge for this type of travel? do you have a minumun amount of hours for this type of work? or do you have a reduced rate for travel? or charge one way? both ways? or what???

So, what about a job that is 1hr travel, 1hr repair, and 1 hour back home....what are these type companies accustom to paying?

I would charge T/M from doorstep to doorstep, and then add $$ for gas money.

 

[Mule]

I would charge T/M from doorstep to doorstep, and then add $$ for gas money.

We were doing that while fuel was so high, ($10trip fee, or fuel surcharge) however I've changed my tacticts as charging a fuel charge is a bit "Whinny" now IMO with lower fuel cost. So, we just changed to a min service rate that just includes this $10, but just states it another way....

 

[mjf]

I have a gas station chain that calls me often. Usually they want the job performed immediately. They call me because they like my work and they know I will (truly) get there ASAP. They are pulling me off another job and they get charged travel time. Full hourly rate, but I also don't charge an inflated "emergency" rate. If it's a job that can wait till the next day, they are still pulling me off another job....same rate. The most I've travelled for them is about 1.5 hrs each way. Can't lower my rate to travel when I'd be making my rate close by.

 

[charlietuna]

I once worked for a service shop that serviced a food store chain. The shop would always have a standing list of job requests from the chain. The owner negotiated a labor rate for a JW and Apprentice team, also a rate for travel time and mileage. Sometimes we would travel 50 miles each way to change a ballast and offen used this account for fill-in jobs between other calls. I know it was not cost effective for the food store chain --guess thats why they now have their own service department.

 

[Sparky555]

So, what about a job that is 1hr travel, 1hr repair, and 1 hour back home....what are these type companies accustom to paying?

How about a first hour charge that equals three normal hours? If your rate is $75 per hour you'd say $225 for the first hour, then $75 per hour after that. You can adjust that first hour rate according to your travel time.

 

[Mule]

How about a first hour charge that equals three normal hours? If your rate is $75 per hour you'd say $225 for the first hour, then $75 per hour after that. You can adjust that first hour rate according to your travel time.

Thanks for the suggestion.....I talked to this client today on the phone....he said that cooperate has tightened the belt. No work orders unless its a severe safety issue.....The economy is taking its toll

A long time Chevy dealer here in town just closed its doors today. A bunch of semi transports loaded all of the vehicles .......Looks pretty bare

 

[jrannis]

I would charge portal to portal and then deduct what you would charge for travel on a local call.
For a long term agreement, you would need to get your time paid for and at least $10 per hour for your truck.