question for the mobile guys...

kaval · 02-18-08, 07:23

Hey everyone,
I'm looking to extend my operation to have a mobile component in efforts to phase out on-site details and become a completely mobile operation. Through my analysis I lost quite a bit of revenues last season from not being able to travel to clients.

Anyways I've come to find out how you incorporate your traveling cost. Right now I have two options that I've come up with:
1) Base price for detail + 50 cents per km traveling cost (I've factored in fuel cost higher than average as prices continue to rise, insurance cost, repairs/maintenance, plus money to be made for myself for driving around).
2) Charging a set price that has a traveling fee built-in. For example, $270 for an AIO + interior spot shampoo, and then round it to $300. This allows $30 to be earned that would more than cover traveling costs up to a distance of 120km to and from the client, without considering time in travel due to traffic and such. Most of my client-base is within a 40km radius, but avenues to travel there are prone to traffic jams. The second option allows for some money to be made while being stuck in traffic, but I'm worried that clients will not be willing to pay the extra $30 to the price of the detail. I am aware however that people who see the value in the work will pay, as well as for the convenience.

In the end, I don't want to get stuck in traffic or something and be sitting there losing money.

I don't know...

So how do you mobile guys/gals work the traveling cost in?

Thank you in advance!!!

Kaval

kaval · 02-19-08, 09:01

bump

Would really appreciate some responses

brwill2005 · 02-19-08, 11:26

Officially I am a mobile business, however, I do work out of a fixed location from time to time. I do not charge any more for mobile service, unless the customer is more than say 40-50 miles away. What you are proposing sounds just fine. I keep detailed records of my business miles, so it is a tax right off.

BillyL207 · 02-19-08, 11:29

Agreed. Nice tax write off!! The new taxes of 2008 state instead of .445 cents a mile its now .50 cents a mile. I read this in a tax book I just need to remember where I read it at.

mhadden · 02-19-08, 01:33

I thought it was 48.5cpm...

The Cost of Doing Business: Organize Travel and Business Expense

brwill2005 · 02-19-08, 02:55

The new rate for 2008 is 50.5 cents per mile.

kaval · 02-19-08, 03:06

Thank you for the responses so far!

50.5 cents per mile would be 80.8 cents per KM right? (1.6kms in one mile). That sounds kind of high

brwill2005 · 02-19-08, 03:30

Here in the U.S. the flat rate per mile is supposed to cover gas and other maintenance on the vehicle you use for business. The other option is to keep track of each time you put gas in your car or do maintenance/repairs. Once you use that method, you can not go back to the flat rate per mile method. I think use my car for business and personal, so the flat rate per mile is easier for me.

Stephenwz968 · 02-20-08, 06:46

I don't charge more since I never work on site, I just figured the travel time and expenses when coming up with my pricing plan, so that way it's never an issue. If a client is an extreme distance (75+ miles away) then I will charge them for the next package plan higher and tell them it's to cover the cost-unless they want the premium package in which case I charge them an extra $1 per mile past 75 miles. Then I write off all of my mileage at the end of the year.

Steve

tdekany · 02-20-08, 07:47

Quote:

Originally Posted by Stephenwz968

I don't charge more since I never work on site, I just figured the travel time and expenses when coming up with my pricing plan, so that way it's never an issue. If a client is an extreme distance (75+ miles away) then I will charge them for the next package plan higher and tell them it's to cover the cost-unless they want the premium package in which case I charge them an extra $1 per mile past 75 miles. Then I write off all of my mileage at the end of the year.

Steve

Exactly - I mean you don't get paid for going to work and going back home if you work in an office.

quickerclean · 02-23-08, 04:59

I wouldn't and don't charge extra. I look at it this way, I am able to choose what jobs to do and what not to do. If I choose to take on a job that is far enough away that I am worried about the cost of getting to it and back that was a decision I made and wouldn't charge my customers extra for it.

On the other hand I charge a decent rate for my jobs and using 5 or 6 gallons of gas to do my job is not going to hurt my profit much at all.

You can of course hide the extra fee in the detailing price, but definitly don't make it obvious to the customer you are charging them for travel distance/time. Bad mojo if you do IMO, customers don't like it.

mixxer · 02-23-08, 06:18

my travel prices are figured in to my detailing with any job 30 miles or under.Any thing over 30 miles my costs are worked out with client before hand for travel expenses.