Factoring Gasoline in Quotes to Clients

L

Laura M

#1
Well I'm not sure if gas cost or mileage on cars is worse in terms of $...but here is this weeks schedule:

Mon - new client - drive 120 miles (customer covers last 60 + hotel)
Tues - drive back home (same)
Wed - 2 clients, both 45 miles away so scheduled together
Thurs - 1 client ~ 35 miles
Fri - local client - yippee

I'm not a 'gouger' - if a client is within a 'normal' commute, I don't charge. Probably wouldn't get the contract if I did. So what is the cut off - I have a client .5 miles from the house and several around 30-40.

So does the price of gas cost - yes. So I set my quotes at everything over 1 hour they pay per mile, and so far, no debate. Not sure if I should change it to 30 minutes.

For those of you that use consultants, does that sound reasonable?

Don't want to derail the thread - I guess the price of gas has only affected mee in determining how to bill - increase rates, or charge for travel.
 
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R

ralphsulser

#2
Re: Is the cost of energy (gasoline, electricity, natural gas, etc) affecting you?

Laura, you could do what other suppliers are doing...add a surcharge until the prices stabilize and go back to where they are reasonable. If they don't, then fold the surcharge into your normal rate. Gald to see you are keeping busy:D
 
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C

Craig H.

#4
Something you could consider is a clause in your standard contract that adjusts the price upwards if a benchmark gas price exceeds a certain amount. The key would be finding that benchmark, one that is published monthly (or daily, weekly).

Just a thought.
 

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#5
I think it depends upon the situation. For example, I just did a quote for a company and am getting ready to do another more local company. In the closer one I expect to be short (a month or two), so it is part of the overall quote - I didn't break out travel as it's only about 50 miles from where I am). The one for the further away company I expect to be 6 months so I stated in my quote that travel costs (air fare, hotel, etc) will be actual costs at the time (no hourly fee for travel, etc.). In cases where I might drive, even though it is 300 or more miles, I cite mileage rate as the IRS deduction rate in place at the time of the travel (the IRS rate has varied quite a bit over the last 3 or 4 years).
 
L

Laura M

#6
I kind of figure everyone has to 'drive' to work, so door to door, especially for local clients I don't charge travel. That's why I indicate for everything > than the first hour. I guess it has to be worth it to me to put the miles on the car and the time on the road.
 
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