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#55577 09/10/05 08:59 PM
Joined: Aug 2005
Posts: 28
The company i work for pays traveltime.
what i am trying to find out is if there might be some creative ways to bill the traveltime between jobs or to the first job,especially if the travel distance is very far.efficiency is the key right?
i know different companys have different approaches and maybe we can find a way to bill this time, without violating ethics.

I just think there might be are areas of opportunities to fix that and bill for that.
Just trying to find solutions by posting this

[This message has been edited by copperseller (edited 09-11-2005).]

#55578 09/12/05 08:38 AM
Joined: Aug 2005
Posts: 11
One solution maybe to adjust the "what it takes" per task average to cover the additonal drive time.

Example: If you charge 10 minutes to install a receptacle you could add a few additonal minutes to each task to cover the additonal drive time.

#55579 09/12/05 09:52 PM
Joined: Aug 2005
Posts: 28
good idea , raising the minutes is always good.
i like the minimum charge idea too.seems to have some potential there.
instead of a trip charge, maybe something like a "basicrate" or "starting rate" for which will be service performed as usually, same for the rates,as usually
instead of overcoming a tripcharge during the prequalifying i kinda get a "preapproval".conversion here i come
sure needs some fine tuning but i like the idea

#55580 09/12/05 10:10 PM
Joined: May 2005
Posts: 706
There are a variety of ways to cover your expenses. It can be a game for some, but usually it comes down to:

1. First hour charges greater than your usual rate.

2. A Service or Travel Charge.

3. A Diagnostics Charge.

4. A Minimum Charge.

5. A combination of the above.

What we all want to avoid is that situation where you charge by the hour without these other charges. You have an hour round trip travel time, work on the job an hour, and you've just made half your rate. If you add in a free estimate or bidding time you might make a third of your rate.


#55581 09/12/05 11:32 PM
Joined: Jul 2002
Posts: 717
I personaly do not think it is a clever tack to add minutes, if you happen to be charging T+M. Service charges and minimum charges are ok, the customer can take it or leave it, but I have had some customers who watch the clock like hawks. If I have told them there is a minimum 1 hr or some such, then thats the deal, regardless if I have only spent 45 min on the job. But, if I spent 45 minutes, charge em for an hour,and do not say so in front, I am going to hear some squaking from the clock watchers. Actually my state could label that as unfair and deceptive trade practices and spank me.

#55582 09/13/05 08:46 PM
Joined: Aug 2005
Posts: 28
thnx for the post macmike
Adding minutes was sure referring to flatrating and not T&M.And as part of the breakeven calculation(which is essential not for flatraters only) it is sure legitimate to do so.The good point is, that adding those minutes will raise the price just a couple bucks, but by the end of the month it can mean several billable hrs more.If you get paid an incentive it will do you good.flatrate rocks

[This message has been edited by copperseller (edited 09-13-2005).]

#55583 09/13/05 09:22 PM
Joined: May 2005
Posts: 16
For repair work we charge an extra half hour on each service call for travel time and pay the service tech an extra half hour's pay on each job.
(1/4 hour to get to each job and 1/4 hour to get back.)

In other words for the first 1/2 hour (or less) the customer is charge for one hour minimum.
After the first 1/2 hour we break it down by each additional quarter hour on the job.

It all averages out in the long run because the service tech might get paid 1/2 hour to get to his next job which is actually 5 minutes away or might be 45 minutes away.
Sometimes he can actually get 10 or more hours pay for an 8 hour day.

It works for us because we stay in a fairly small area and seldom drive very far.

Lately we have been adding $10.00 to each job or $10.00 per day on two day or more jobs for Gasoline.

#55584 09/13/05 09:40 PM
Joined: Feb 2005
Posts: 693
Sparks, are you saying that you don't pay the techs 8 hours of pay for 8 hours of work? This sounds like you have a way to speed up a slow guy (like one I have).

Please tell me more, if you don't mind, and what happens if there's less than 8 hours worth of billables in a day? We're paying hourly, but not by the job, per se.

Larry Fine
Fine Electric Co.
#55585 09/13/05 09:45 PM
Joined: Sep 2005
Posts: 13
When it comes to traveltime i think us T&M guys make out better than the flat rating guys.We charge port to port and have no problem with

[This message has been edited by teraohm1 (edited 09-13-2005).]

#55586 09/19/05 08:36 PM
Joined: Sep 2005
Posts: 13
by the way
is there a way to combine T&M with flatrating?

[This message has been edited by teraohm1 (edited 09-19-2005).]

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