Truck Fuel prices

Bill_14

Was it difficult for you to do this? If so, why? I throw this at you as a question to let others understand the importance of covering your basic costs without concern.

Bill

Jim_47

Service Truck Fuel prices

Ok first off I do not wish to start another T&M vs Flat rate discussion, I'd just like to address the ever rising Service truck fuel prices.
I am very happy with my present labor rate, but... I have done my second quarter books and have noticed that my income vs fuel costs compared with previous quarters has greatly increased.
My question is for those guys that charge a truck charge.
Do you charge everyone the same fee? Do you charge for diffrent zip codes differently?
In answering customers questions on the truck charge what else do you include in that fee?
A truck charge is new to me so any help is appreciated.
thanks

Ken_8

Truck charge?

Did you mean a "trip charge"?

If so, the answer is rhetorically, "Did you REDUCE your trip charge 2 yrs. ago when gas dropped to below 90-cents a gallon"?

If not, why not?

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Bill_14

Fuel Costs

Your fuel costs are one of your many costs of doing business Jim. That line item alone has incraesed several percentage points and you cannot give these costs away.

Would you adjust your costs if wages increased? Copper pipe increased? You can either do this as a surcharge or you can adjust (increase) your cost of doing business.

In my opinion, these increases will not be temporary and will settle out at a $1.80 to $2.00 per gallon minimum. Have your accountant or bookkeeper give you some help in establishing your (not your competition) COST OF DOING BUSINESS.

Bill

hr

You are wise

to run your numbers and realize the impact the fuel costs make. Monthly, or better yet, weekly finanicals are good to run, and easily done with todays software.

Consider your bottom line had you started adjusting several months ago

You have to cover the expense somewhere and somehow.

All my freight bills list a fuel surcharge these days.

Calculate that cost and apply it somewhere! Call it whatever, trip charge, fuel charge, truck fee, etc. Or adjust your billiable hour charge.

I suspect many of your customers have business of their own and have to address rising costs related to fuel, and energy in general. You're not alone in this boat!

It shouldn't come out of your profit line, IMO. If fuel really does drop to .90 again recalculate, nothing wrong with doing that, is there? I'll bet few customers would complain if your prices went down should that happen.

hot rod

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Dale

This months nat. geo

This months national geographic has the "end of cheap oil" story, my brother who works in the u.s. at a foriegn owned refinery told me all refineries are running past wide open, no new ones are planned in the us and more and different types of gas are regulated. The national geo article showed all the stuff, plastic mostly,as in pex tubing, that's made from oil, as well as most chemicals. So, keep tracking your monthly, costs and keep adjusting for the cost increases in fuel and material that's bound to come and then stay.

John R. Hall

News' column

I wrote my column this week on the topic and quoted a couple of replies from our "Forum" discussion board, including this:

"I asked visitors to our HVACR Forum in the Extra Edition section of our Web site (www.achrnews.com) if they would pass on rising gas prices to their customers. One visitor, Brad Swanson, replied, “We have added a $5 trip charge to all calls. We had thought about a $10 charge, but decided to start with $5 instead.”"

I did a hypothetical on the increased cost of gas to fuel the trucks and suggested that small companies could be paying over $4,000 more a year in gas while larger companies could be paying over $40,000. Nothing to sneeze at.

John R. Hall

News' column

I wrote my column this week on the topic and quoted a couple of replies from our "Forum" discussion board, including this:

"I asked visitors to our HVACR Forum in the Extra Edition section of our Web site (www.achrnews.com) if they would pass on rising gas prices to their customers. One visitor, Brad Swanson, replied, “We have added a $5 trip charge to all calls. We had thought about a $10 charge, but decided to start with $5 instead.”"

I did a hypothetical on the increased cost of gas to fuel the trucks and suggested that small companies could be paying over $4,000 more a year in gas while larger companies could be paying over $40,000. Nothing to sneeze at.

Geo_2

gas prices

I quietly added a $5.00 trip fee this month for all service calls, hey it's nearing $70.00 to fill up the van now and it only last 2- 2 1/2 day's!!.

Jim_47

Truck fuel

Ive never had a truck charge or a trip charge. I have always considered fuel as one of my operating expenses that I included in my hourly fee. Now like one of the gents here stated at $70.00 a tankfull and sometimes 2-3 tanks a week it has amounted to a substantial amount extra.
Just trying to understand how the public took it the first time you added this chg., and how did you explain it.
It took me 31 miles to get to a single call the other day. thats 62 miles round trip, at 10 miles pe gallon and 2.25 per gallon it's a substantial amount more to just cover this in the hourly rate.
thanks for the thoughts guys...

Constantin

I guess it depends on...

...whether you charge a trip charge. This may be more relevant for rural settings where folks ought to understand that a tech who is driving is still on salary, getting paid, etc. whether he/she is behind the wheel in the truck or on the knees in the basement.

In more urban environments where less time is spent behind the wheel and more doing work, it may be easier to simply incorporate the fuel cost into the standard overhead rate.