First Invoice...first Real Problem.

derek12b

I just started my own company and I did it knowing I was going to have a client when I started. This helped me make that big "leap of faith." I got my first service call through this company and I went and did it but now its time for the invoice. OK here it goes. I have to fill out a vendor service agreement with them and I am having some trouble filling in the blanks. If anyone can help I will be forever indebted to ya.

Hourly Service Rate $65.00 Is what I am going to put for this one
After Hours Rate $97.50 This is just time and a half for the hour rate
Trip Charge ???? I have no clue what to put here
Travel Hourly Rate ???? Lost here too
Other(Fuel Surcharge) ??? Yep, you guessed it...I'm at a loss here too
Operating Range 50 Miles This is what I want to put here


I would appreciate any assistance. Oh yeah, Im new to the forum so...hello all. The business I started is a low-voltage business in Indiana.
I need to fax this invoice in tomorrow with the vendor service agreement. I was laying in bed when I just couldn't take it any longer...I had to post.

Derek

Chris Johnson

Trip charge is different then your hourly rate, you may charge a flat fee of $ 50.00 (or whatever you chose) which is automatic for every job/call, this way if you only invoice for a one hour call, it hardly seems worth it, this helps out there.

Travel hourly rate, here you charge normally less then the hourly fee since it is driving, you may chose say $ 40.00 per hour for your time behind the wheel

Other (Fuel Surcharge)...that's the in thing, everyones screwing everyone on fuel surcharge, add $ 6.00 to your invoice just because you can, covers a pack of smokes and a coffee...per job

__________________
Chris

Snow Man

Hourly Service Rate $65.00 Is what I am going to put for this one
After Hours Rate $97.50 This is just time and a half for the hour rate
Trip Charge ...........................
Travel Hourly Rate .......................
Other(Fuel Surcharge) ........................
Operating Range ......................................all in the same to me.

Dont get greedy, there are 50 other guys out there starving.
If they can replace the President , they can replace you .
.

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DECOSnowRemoval&IceControl
Serving Delaware County & Philadelphia Pa
610 457-9721

derek12b

Im trying to NOT be greedy. Check it out. I went on a run yesterday and it took me an hour to get there and an hour to get get back. I was on site for 1 hour. If I only charged my hourly rate and like a $30.00 trip charge I lost money...Its like $12.00 an hour. Also I received the email, printed it off, created an invoice and I am having to fax it. This means I was at like $8.00 an hour. Is McDonald's hiring? I am trying to run a business.

Chris ....thanks for the advice and thats what I am going to charge from now on. You saved my a$$.

Snow Man

You asked for an opinion, and you got one.

Best wishes and most of all , Good Luck!

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DECOSnowRemoval&IceControl
Serving Delaware County & Philadelphia Pa
610 457-9721

send_it_all

All of it sounds fair IF you have a contract or something in writing letting them know they will be charged for all of this. If you didn't tell them in advance about trip charges, fuel charges, time and a half....etc...good luck getting it.

chris n

You might have wanted to figure out such important things BEFORE you started the business.

eastend

you said your hourly rate was $65. Add a $30 trip charge to that gives you $95.
If you spent 3 hours between traveling and working that comes out to $31.66 per hour.
You said it was more like $12 per hour.Is there something wrong with my math or yours?
If you ever want to get a handle on your new business you MUST know the numbers. That is critical. You must be precise- don't just guesstimate. That's the only way you can really figure out what it costs you to actually do business, how much you need to charge to stay in business.

you did not say if there were any materials involved

Chris G

Sounds you have a good client if they are asking you to detail those things. Some don't tell you they pay trip charges until you ask for it.

Here is what I charge when I do commercial hanydman work.

Hourly..................$xx.xx (minimum one hour)
After Hours...........$Depends
Trip Charge...........$50.00 I refer to it as a call charge on my invoice. It covers the conversation or e-mail time with the client and the general set up for the service call. Pretty standard stuff. Some refer to it as a service charge too.
Travel Hourly rate...I charge my full hourly rate for anything outside of 30 minutes. And I charge both ways. If it turns out to be one hour there, one hour of work, and one hour back that is 3 x my hourly rate. I also wave the Trip charge in this instance.
Fuel Surcharge......I thought about this, and just decided to up my hourly rate by $5 instead.


You are not being greedy. Offer exceptional service and you will be rewarded handsomely.

May I ask what kind of client is this? Commercial I assume? A chain? That would help to know.

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Deck Fence Porch Builder Toronto

TigerFan

Dereck - what company is that? I've got a low voltage company in Louisiana. It looks like that might be a national VAR that books job for companies with many branch offices?

In any case, here's what we charge:


Hourly Service Rate - $95.00
After Hours Rate - $125.00
Trip Charge None - but implemeting one. It will be $75.
Travel Hourly Rate - see below
Other(Fuel Surcharge) - none - included in travel charge
Operating Range - we do about 300 miles

Travel schedule:
Travel Charges for Service

The following rates apply to service calls requiring extended travel to onsite locations. Mileage is base on ONE-WAY trip estimate. (IE: A service call in Baton Rouge, LA is 65 miles from New Orleans and would incur a travel charge of $75.00).

Greater New Orleans - $50.00

50-100 Miles - $75.00

100-150 - $100.00

150-200 - $150.00

200-250 - $200.00

250+ - Determined at contract

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http://www.bayoucontracting.com

trav007

howdy, how do you adjust the hourly rate for two guys rather than one. Hypothetically speaking if I charge 65.00 for me and I charge 100.00 for two guys per hour is that about right? The second guy is obviously getting payed less but should I just charge him out at the full rate?

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Travis
www.customkreations.ca
"The most perfect technique is that which is not noticed at all"
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nap

If the 2nd guy is the same qualification, simply double hourly charge. If using a helper or apprentice, the second man would be less than the first and determined by his costs.

there is really nothing that is "about right" without you figuring out what it costs to have the 2 men on the job along with overhead and profit.

Tearman

I think the best way is have a flat hr fee port to port and tell your customers that you don't charge for fuel

Tearman

Snow Man

Guess his hopes were to high , he hasnt returned.

__________________
DECOSnowRemoval&IceControl
Serving Delaware County & Philadelphia Pa
610 457-9721

Synacom

For low voltage a lot depends on where your work is coming from. If you are one of 5000 nationwide subs your rates determine how much work you will get. I charge travel at about 6 different rates among my customers - those sending me the most work usually get the best rates. I don't think time and a half is competitive because most individual LV contractors add 10 or 15 dollars hourly at the most for evening work. I have billed out work anywhere from 18 dollars an hour to 225 (computer work) dollars an hour and everyone thought they were getting their money's worth.

Marty

Synacom

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