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this is a bit off topic but...

Discussion in 'Chevy Trucks' started by spongebob, Dec 17, 2005.

  1. spongebob

    spongebob Senior Member
    Messages: 102

    you guys that are in business for your selves, and use your truck..
    if you use a trip charge (charging a customer for the round trip to do the work). how do you calculate this charge..
    i inherited a .48 cent per mile thing when i bought my business that was in 1998 when gas was $1.20 per gallon..
     
  2. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    I have no idea what you are talking about. your charge the customer per mile or what?
     
  3. spongebob

    spongebob Senior Member
    Messages: 102

    yes..i service commercial referigeration..i drive between 50 and 150 miles one way to a customer..i charge that customer for that drive..what im trying to figure out (i only have one competitor) is a fair charge..my competitor does the same thing..
    what im trying to figure out is the cost of running my truck down the road..sort'a like a guy that drives a 18 wheeler does..
     
  4. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    ahh. you shoulda said that it was comm. refrigeration, because i figured you were charging customers gas money to plow their drive...

    well now that we have that straight....

    What I would do is this, divide .48 by 1.20. That is .4. Then times .4 by what ever your paying for gas now, or will be expecting to pay, lets say 2.30. and 2.30 x .4 is .92.... So .92 would be the equivlent charge of the .48 when gas was 1.20 per gallon back in 1998.

    at least im guessing thats how you figure it out, thats how I would. If im wrong, im sure ill be corrected.
     
  5. spongebob

    spongebob Senior Member
    Messages: 102

    thats close to the $1.00 per mile a formula i found..
    but i got stuck on the charge per mile for:
    maintenence
    insurance
    licence
    regestration
    depreciation
    finance charges
    taxes..
    the formula had a cost of .50 added for the above..but it could be changed..

    guess ill have a chat with my bean counter..:dizzy:
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Not really sure what your trying to figure out, but the i.r.s. allows only .45 per mile wouldn't it be better to charge a % of your hourly labor cost ? What happens if you get stuck in traffic for an hour but the job site is 5 miles away? I was told moving companies were adding 14% fuel charge now if that helps.
     
  7. spongebob

    spongebob Senior Member
    Messages: 102

    .45 per mile??? maybe i could get the irs to chip in on my $1000 per month fuel cost.
     
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Thats fuel and maintenance.:cry:
     
  9. ratlover

    ratlover PlowSite.com Addict
    from IL
    Messages: 1,325

    I wouldnt include stuff that you are actually paying for and taking into acount anyway wether the truck sits, drives a mile, or drives 100. Depreciation is so hard to figure also. I would just come up with a consumable cost and then build the other stuff(like insurance) into your other charges as a cost of doing biz. Fuel, tires, oil changes, filters and scheduled matincene is easy to break down per mile. Thats the way I would do it IMO.
     
  10. ratlover

    ratlover PlowSite.com Addict
    from IL
    Messages: 1,325

    speaking of oil changes.....if you are doing lotsa highway mile trips ect......you may look into synthetic oil and oil anaylisis and extending your drain intervals.......

    I think there is lotsa info over on theoildrop.com(iirc, search bob is the oil guy or oil BBB or something like that)