Posted by NCWayne on December 28, 2011 at 18:51:34 from (69.40.232.132):
Just curious as to what you guys think on this. Did a job for a new customer a week or so back putting a track adjuster seal on a 331 CAT. Basically it's an older style machine about the same size as a 345 CAT excavator. Did it in the field on the customers yard. The track had been thrown and I had to get it off without breaking it apart due to the way it was setting. Thankfully the customer said he had thrown it and put it back on and so many times that he would put it back on himself without needing me to drive out the master pin. The way things worked out it was about an 8 hour day from the time I left the house until I got back, and about 90 miles round trip.
I got a check in the mail today from the guy for the full amount of the invoice, no problem there. However, included with the check was a note saying that he didn't realize that I also charged for my mileage.
As it stands I offer the same range of services as any major dealership, and then some n many cases. Other than having ten thousand dollars worth of computer equipment for the newest machines, I actually offer more bang for the buck then they do. I say this because I offer turn key service for things like line boring since I do both the mechanical part of the repair, the welding, the boring itself, and typically any outside machine work needed to accomplish the job as well. This saves the customer money in the end and usually gets them back on the job faster than having one guy taking it apart, one welding, one boring, one doing outside machine work, etc, etc.. Too I have no problem getting a part rebuilt if possible at a fraction of the cost that a dealership would put a brand new one on for, or simply patching something at a customers request to help save them money when they don't necessarily need brand new. I also try to stock really common stuff on the truck like switches, etc that, worst case, I can use to get a customer out of a jam if need be until the OEM replacement part gets in.
In most cases I charge from the time I leave the house until I get back home. Rate wise I'm currently at $60 an hour, down from $84 two years ago, just to help both me and my customers survive in this economy. Most heavy equipment dealers, like CAT, are anywhere from $90 to $100 an hour. I don't take lunch, and I work until I get done or it gets too dark to work, so the customer gets a full days work instead of someone that checks in at the office at 7 for an hour before heading your way and is then headed out to make sure they get off at 5. I run a service truck that drinks just as much fuel as any the dealerhip has, and is actually better equipped in alot of cases with a 10,000 lb crane vs most dealers at 8000 lbs or less, a 75 CFM screw compressor to handle a 1" drive impact vs a 35 CFM that won't handle a 1" without a tank, etc, etc. Now to pay for the truck expenses I only charge $1.50 a mile, and with the price of fuel, insurance, upkeep, etc that equates to about a 10% markup on the actual fuel cost, and part of that disappears when the fuel prices go up. The dealers charge about the same thing and also often have differing rates that increase the further out they go. Me I charge the same for my mileage wether it's 5 miles or 500 miles. Even then for the 500 mile out jobs I will often cut a deal with the customer for a bit less, just to help them out some, since I'll stay somewhere local and have motel expenses, etc in cases like that. On top of that I also have insurance and other expenses to pay just like any other company does.
Now my question. What do you guys consider to be normal practice, or what is the practice in your area for someone doing field repairs??? The way I see it I'm getting paid for my time and if your machine is an hour away I deserve to get paid for the time it takes to get to you just as much as I would if you were 10 minutes away. Too fuel, tires, brakes, etc aren't free so a mileage charge shouldn't be out of line either.
I know what I do, the way I charge for things is customary in this industry. Too I was told by the guy who gave this particular customer my name that he typically used the dealership for alot of his repair work. Because of that I know this guys note shouldn't bother me but him being a first time customer, in an economy where it's hard to get new customers, it does. So, am I being unreasonable or have things just gotten to the point where people think that someone who is in business for themselves doesn't deserve the same pay for the same type and quality of work they'd get from a dealer?
Like I said the whole situation just kind of got under my skin when I read the note and I was just curious as to what you guys think. I've got a really thick skin and I don't plan to change the way I do things because of this one note. Heck to cut back any more I would put myself out of business in a hurry. Still I was just curious as to what you guys have experienced and what is NOW considered the usual practice in other areas of the country.
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