Question for the Pro's that travel with thier service...

[Nick Chapman]

I'm toying with the idea of a new structure of charging customers, and was wanting some opinions on it.

Basicly, I've been charging my hourly rate, plus travel expenses. But what I'm thinking of now, is just marking up the hourly rate when involved with a job over xxx amount of miles. Example, if you normally charge $50 per hour for locals, then for out of town customers where a hotel would be needed you would charge $65 per hour(20 hour job would be $300 extra) . This way, when you give them a quote, you can avoid making them feel like they are paying extra for travel expenses, when in fact it's all factored into the quote. You could adjust your hourly rate depending on the distance involoved.

What are your thoughts on this? Is it better to just let them in on all of the costs involved? Is this just being sneaky and deceptive?

Thanks,
Nick

[Andrew C.]

Re: Question for the Pro's that travel with thier service...

Would you be letting the customer know that you have changed the hourly rate based on their distance? If not then I don't see why that shouldn't work, it is all just a matter of if that hourly rate is acceptable to them.

[BlueZero]

Re: Question for the Pro's that travel with thier service...

Would it be a concern if customers talked to each other and found out that they where being charge different rates?

At the engineering firm I'm working at now we looked at doing something similar. The concern was that customers would get upset if they found they where being charged differently for the same service. Where as they seem to understand when there is an additional travel charge.

[Nick Chapman]

Re: Question for the Pro's that travel with thier service...

Would it be a concern if customers talked to each other and found out that they where being charge different rates?

At the engineering firm I'm working at now we looked at doing something similar. The concern was that customers would get upset if they found they where being charged differently for the same service. Where as they seem to understand when there is an additional travel charge.

Yes, I can see that point. I guess I just feel bad for charging a customer $xxx.xx to travel to do thier vehicle. Maybe just charging a set rate of $20 more to all out of town customers?

$50 local
$70 if an overnight stay is required?

[BlueZero]

Re: Question for the Pro's that travel with thier service...

Yes, I can see that point. I guess I just feel bad for charging a customer $xxx.xx to travel to do thier vehicle. Maybe just charging a set rate of $20 more to all out of town customers?

$50 local
$70 if an overnight stay is required?

We have a map with circles drawn on it. The first circle is included in the price. Each addition circle is $200 extra. If we have two jobs in the same area we will split the cost between the two. Seems to work good.

For $20 more you'll come detail my ride!?!? When are you free!

[Nick Chapman]

Re: Question for the Pro's that travel with thier service...

We have a map with circles drawn on it. The first circle is included in the price. Each addition circle is $200 extra. If we have two jobs in the same area we will split the cost between the two. Seems to work good.

For $20 more you'll come detail my ride!?!? When are you free!

Thats $20 extra per hour of work.

Give me some notice, and I'll come up there for a 40 hour detail

[BlueZero]

Re: Question for the Pro's that travel with thier service...

When I win the lottery consider yourself hired!

Just thinking out loud here... Would it work better to add a flat rate for travel, instead of an additional charge per hour? The travel is the same regardless of time spent there. A quick detail or full detail would involve the same travel so should charge the same. Or are you talking overnight trips? That might work as a flat rate charge too.

[Nick Chapman]

Re: Question for the Pro's that travel with thier service...

When I win the lottery consider yourself hired!

Just thinking out loud here... Would it work better to add a flat rate for travel, instead of an additional charge per hour? The travel is the same regardless of time spent there. A quick detail or full detail would involve the same travel so should charge the same. Or are you talking overnight trips? That might work as a flat rate charge too.

Yes, I'm speaking pretty much all overnight trips. I do quite a few a year. Would like a more simple pricing for my customers where a hotel will be required.

[ClearlyCoated]

Re: Question for the Pro's that travel with thier service...

I guess you could give them the option of charging $65 per hour if you travel out to detail, or offer them the local rate if they bring the vehicle to you, especially if it's a multi-day job. They wouldn't have to stay overnight, but opt to return for it when it's ready.

[Markus Kleis]

Re: Question for the Pro's that travel with thier service...

Sounds like a double edged sword, but ultimately I think going with the transparency of a separate travel charge is the way to go. Considering the type of clients that would be using the service anyway, I think they will "get it."

[Paul S]

Re: Question for the Pro's that travel with thier service...

Always be up front on the charges. People that hire you will most likely understand that you are just covering your overhead.

Paul

[Bounty]

Re: Question for the Pro's that travel with thier service...

I too charge an hourly rate for my side detail work. There are a lot of things "hidden" in the pricing such as materials but I don't think travel should be one of them. This is an upfront addition that should be discussed, understood, and agreed upon by the client.

Someone who is paying you to travel to come detail their car is assuredly understanding of the fact gas, food, and lodging need to be provided for. If not, they'd just get someone local.

But if a 20-hour detail costs $1,000 ($50 an hour) then why should a 20-hour overnight detail cost $1,400 ($70 an hour)? Are you really going to spend $400 on a room for a night and fuel? If it was a major 30- or 40-hour detail this difference could be as much as $800.

That's a huge price disparity. I'd shoot for a set pricing for your work ($50 an hour or whatever) and a set pricing for travel (such as $150 a day) to cover fuel/lodging.

Just my two cents....

[ClearlyCoated]

Re: Question for the Pro's that travel with thier service...

But if a 20-hour detail costs $1,000 ($50 an hour) then why should a 20-hour overnight detail cost $1,400 ($70 an hour)? Are you really going to spend $400 on a room for a night and fuel? If it was a major 30- or 40-hour detail this difference could be as much as $800.

That's a huge price disparity. I'd shoot for a set pricing for your work ($50 an hour or whatever) and a set pricing for travel (such as $150 a day) to cover fuel/lodging.

Just my two cents....

Depends. You have to account for fuel, wear and tear on your mobile rig, wear and tear on the detailer, meals, plus other expenses that I'm probably missing. So if Nick has to travel 200 miles round trip, figure that his rig probably gets less than 20 mpg, factor in the fuel and wear and tear (let's say 50 cents a mile just for some quick math - that's my corporate rate I charge to my company when I'm required to travel and use my own car). A quick break down:

Travel (at 50 cents per mile) $100
Motel room 1 night: $75.00
Meals (Total of 6) $75.00

That's already $250. An extra $150 for Nick's time and trouble to go out there isn't too much of a premium, and I imagine that money might get gobbled up in other incidental expenses that I'm undoubtedly overlooked.

But I also like your idea of a set fee of $150 per day, say with a mandatory minimum of two days.

[Markus Kleis]

Re: Question for the Pro's that travel with thier service...

One thing I didn't consider before, and Nick and I discussed today was the fact that in some cases he may have to spend a full day driving each way. If he wasn't driving, he would be detailing and earning his full hourly detailing rate while doing so.

In other words, he is taking a loss in order to travel since he would be at home working instead of driving, and earning a full wage in the meantime.

It's a tough spot to be in because I'm sure Nick wants to be fair and help the people out that thought so highly of his work to have him travel, but at the same time he has a business to run and a house to pay for (with hungry mouths inside!).

[Bounty]

Re: Question for the Pro's that travel with thier service...

One thing I didn't consider before, and Nick and I discussed today was the fact that in some cases he may have to spend a full day driving each way. If he wasn't driving, he would be detailing and earning his full hourly detailing rate while doing so.

For me a "full day" of driving is at least 8 to 10 hours and at 60mph you're talking anywhere from 560 to 600 miles one way!! To me that's extreme but then again my family doesn't eat from this so I definitely understand. If it's something of that nature then it might be best to do the math and work out something specific to cover the travel expenses. If traveling out of town for a big job for several days costs you 5 or 6 of your bread-and-butter local jobs then the detailer has to weigh the worth of the trip...we all have to say "no thanks" to some work.

I guess my general idea was to not have the customer think you're raking him over the coals or "making money" from the travel expenses. I think a flat per diem travel rate is the way to go for 99% of out-of-town detail jobs. If it's a big project, show or museum piece, etc then a negotiated travel expense should be arranged.

Either way I think your work Nick is worthy of travel expense versus some local hack or "professional" and really is worth whatever you say it is. It's up to the customer to say yes or no.