Trip Charges - when to apply and why

JIMRPT@aol.com JIMRPT@aol.com
Sat, 14 Feb 2004 09:23:40 EST


In a message dated 2/14/04 7:09:18 AM Eastern Standard Time, 
phil@philbondi.com writes:

<< For those that charge trip charges, is there a set fee or does it change 
in regards to the mileage from the home? >>

Phil;
 Everyone who stays in business long enough runs into this stuff...........
There are a number of ways to address the indisputable costs of servicing 
what seem to you 'now' as long distance clients. Those costs are time and auto 
related. Time because you can't be in two different places at once doing two 
different things and Auto because the upkeep, and operating costs, of your 
thingee is not a small factor.

 You can of course reduce your auto costs by using a smaller vehicle, Honda 
Civic etc...., and not going out of a smaller well defined area. Ain't gonna 
happen huh? :-)

 The only way you can change time available is to work with more scheduling 
effieciency and work more efficiently while at a customers

 Now the service area problem.
1. Define a strict service area and charge more for going 'outside' of that 
area period.............. Let's say that the out of area charge is gonna be 1 
dollar. For new customers that is fine but what about Mrs........... who is one 
of your original customers and is still using you after all these years (time 
do fly huh?:). Do you charge her the same out of area fee now??????
answer; yes and no...your call ............don't peseverate over it just do 
it.

2. Don't go outside your service area period. At least not except for a 
premium price.

3. Raise your fees for all your customers to cover costs of servicing out of 
area clients period.

4. Don't serve any customer in the outside of your service area without two 
or more customer grouped together..period. To answer your question about 
charging the second customer in your scenario...Yes, charge them the same..period.

 Other permutations are possible of course but basically this is the same 
question of "should I raise my rates?".....cause I can't book all the clients who 
want my services??    

My thoughts.
Jim Bryant (FL)

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