Travel Time and Dispatch Fees

[ZenMike]

For those who do on-site service for business clients, what's your policy on travel time or dispatch fees. I've seen it done many different ways and am trying to settle on what I think is the most fair and reasonable.

[MrMille]

We usually charge a flat fee for a certain mile radius outside of our zip code.

ex. $15.00 for anything 10 miles outside of xxxxx

If it's a large ticket, or other special circumstance, we will wave the travel fee's.

A lot of companies charge 1 hour travel time, However I cant see justifying that to the client at our rate.

How long does it take you to travel ten miles?

[MrMille]

Depends on traffic and the time of day really. Could be anywhere from 10 minutes to 30 minutes or more.

I suppose you might spend 30 going and 30 coming back, that's an hour of travelling. Are you happy that the profit on the onsite work is sufficient?

[gunslinger]

For me anything over 10 miles is $1 per mile.

[Simmy]

For me anything over 10 miles is $1 per mile.

Same here. There's no callout to home users within 10miles (according to googlemaps). Otherwise it's 40pence per mile including mileage there and back.

[Bryce W]

I use a time radius. If the place is not within 30 minutes driving distance then it costs more. I use a time radius over a distance radius because I have some clients that are far away, but there is a direct highway to get there. I also have clients that are closer but I have to go though crappy windey back streets to get there. The windey back ways are more stressful than the further but more direct route so the time radius works for me.

[quizbowler1057]

$10.00 Delivery Fee - Simple computer pickup/drop off. Repair work to be done at my shop.

$20.00 Service Call - Calls within 50 miles or under 4 hours.

$40.00 Service Call - Calls outside 50 miles or over 4 hours.

The calls right down the street subsidize the calls that are a little longer, so it works out very well. I've been told that it's fair and even a little less than some industries. When you get into designing high-end voice, video and data networks for medium and enterprise businesses the companies expect a $100.00 per diem per employee. I think that's outrageous, but I'll probably do it when I get there :P

This all only applies to businesses. Consumers have a minimum 1 hour billing regardless of circumstances.

[markr]

We use a flat fee system: $1 per mile.

[nonchalant]

I advertise a 'no call-out fee'. But I only accept work within 15km or so.

[MrMille]

When I try to charge 15 euro for travelling 15 km
people don't go for it.
I point out that a taxi would cost more than that, and that I am doing twice the distance.

Lot of cheapskates in Dublin

[seedubya]

I charge €1/km and have no problem getting it.

[acs]

I have a series of circles on a map.
Clients in the outer circles are charged a higher call out fee than those near to the centre.

[seedubya]

I've seen delivery companies do that. Seems like a good idea. How do you band it? Every 5 miles?

[MrMille]

I got an Indian guy on the phone yesterday. Didn't like the 220 for a 15.4 widescreen (fitted), and didn't like the 10 euro to pick it up.
Most people seem okay, but some are just ridiculous cheap skates and except someone to drive for miles for free, only to then fix their laptop for cost.

[acs]

I have "bent" the circles a little to take in the major towns.
I then used google maps to work out the addtional distance from my local town worked out how much the additional milage ( both ways) would cost me in fuel and adjusted the call out charges to suit.
My fee structure is a call out charge which covers up to the first hour on site and then a charge for each additional 30 mins on site.
When i new customer phones i ask them where they live before quoting a call out charge.
I originally did this because of the steep rise in fuel costs in the UK but I have now kept the same system even thought the fuel price has gone down !
I am not the cheapest repairer around but my customers are happy with my charges.

[MrMille]

So many different approaches.

How come none of you have settled on the approach taken by government agencies? which would be, €/$1.2cents per mile for a 2000cc car.

[ZenMike]

Thanks for everyone's input. My dilema was in trying to sell monthly service contracts at a fixed price for the convenience of my clients, while at the same time protecting myself against the variable costs of travel.

I've decided to just roll my anticipated travel expenses into my hourly rate, as opposed to instituting a variable outcall or mileage charge.

[jj2000]

I got an Indian guy on the phone yesterday. Didn't like the 220 for a 15.4 widescreen (fitted), and didn't like the 10 euro to pick it up.
Most people seem okay, but some are just ridiculous cheap skates and except someone to drive for miles for free, only to then fix their laptop for cost.

think i had his brother today,he had the Gall and cheek and i am being polite to tell me how much he was paying me for fixing his laptops (both of them have broken screens) he would pay me minimum wage for the job and no travel.guess hes looking elsewhere :D:D

[seedubya]

Some people just take the piss. I had a guy call a couple of days ago looking for advice on a laptop he was buying online. I said "no problem sir, can I have your credit card details please?" "What for?" he says. "For my time" says I " you weren't looking to take my time and not pay for it, were you?" He hung up, needless to say.