[CAUT] charge for time?

[Chris Solliday]

sorry, should say "maximum radius"
CS
  ----- Original Message ----- 
  From: Chris Solliday 
  To: College and University Technicians 
  Sent: Monday, May 07, 2007 1:40 PM
  Subject: Re: [CAUT] charge for time?


  Hello Steven,
  My system has evolved and will probably continue to as others influence me with good advice. I still don't understand why I can't think of everything myself. But what we have currently works well without any complaints (at least none we've heard) and we are busy with multiple techs all the time. 
  I charge a "Fat First Hour" for regular service in my local area. This is twenty percent higher than my regular (or additional) hourly rate. The FF Hour is a minimum and after that I invoice to the tenth of an hour (or every six minutes if you went to public school) rounded up in our favor, we add the cost of materials plus a reasonable wholesale to retail mark-up on them. This FFH covers our travel within a minimum radius and my office expenses averaged out over all our local service calls for the year. The FFH also happens to be a reasonable flat rate fine tuning in my area, not that we spend much time dickering over such things.
  The inclusive radius is twenty miles or 30 minutes travel time one way. After that we add a travel charge for either or both (usually) at the rates of $1.50 per mile (.75 per mile each way, which we found on some website that collates the cost of travel and other factors for small service bizs, sorry can't remember what it is at the moment, maybe Jim B. can???) and our regular hourly rate rounded up to the nearest tenth of an hour times 2 for round trip. If there are other clients out there in the same area we sometimes will split the travel charge proportionately between them.  Sometimes we do not. Parking and tolls are added in addition. Our invoice will look like
  Travel (miles + time + tolls + parking)    $xxx
  Piano Tuning A-440  $xxx
  Additonal service $xxx

  We feel, and experience has proven, that customers outside our local radius service area have very strong reasons for asking for our service and have no issue with paying the difference of a true travel expense. We show our local rates as our service rates and often they are less than the local techs. This eliminates carping over territorial encroachment based on price. And ethically we do not feel right going into another territory for less money. In fact we don't feel good about charging less than anyone else even at home ( we have a high opinion of our own worth) but we do calculate our rates based on our own internal audit of expenses and desired income.

  As an example I had one the other day in NYC 75 miles from my shop and requiring a certain time of day appointment that involved traveling through rush hour traffic. The travel charge was over $250.00 and the service charges were less. The client had no problem and we expect to continue servicing their instrument as we have for years. 

  This system is flexible but can be used as a model, just fill in your numbers, maybe adjust your local mileage and/or travel time radius depending on the type of area you service.
  One thing I must say is that we have tried other approaches (variable geographical rates for service lasted the longest) and this one at the end of the day makes us feel
  most unabused when we have to travel and get caught in traffic etc. It has in some cases eliminated some potential clients who live faraway from using us but this allows the "local" techs an opportunity to improve their skills and still maintains our reputation as the "out of town experts." In the end everyone wins.
  BTW we also apply this within institutional contracts.
  Chris Solliday
    ----- Original Message ----- 
    From: Steven Sandstrom 
    To: caut ; pianotech 
    Sent: Monday, May 07, 2007 10:39 AM
    Subject: [CAUT] charge for time?


    I was just wondering if most of you charge for your time on the road to get to a job? If so do you charge from the time you leave your shop? Do you charge the same rate as your normal labor charge? Or do you only charge for mileage? This would be for jobs outside my normal area where I currently only do a mileage charge. With the cost of running a vehicle going up all the time I was thinking of redoing what I charge. I was interested what most of you are doing. Thanks.

    Steve Sandstrom
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