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Thread: Rate per Km

  1. #1
    Gold Member Singhms's Avatar
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    Rate per Km

    Hello all,

    I am trying to figure out, what would be the best method to determine a rate per Km when travelling to clients?

    I would also appreciate to hear any other tips\hints like maybe not charging for travel up to say 30Km and how much do you currently charge?

    Thanks,
    J

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    Work it out according to AA.

    Here you go.

    http://www.aa.co.za/content/63/rates-calculator/

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    Gold Member Singhms's Avatar
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    Thanks andrew, will have a look.

    I have heard people say that the AA rates are high? Not sure about this though.

    In general do people charge for travel time as well?

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    I don't charge for travel time. Your client can't help if there's road works or riots on your route. That's up to you to take the safest, fastest route possible to your client.

    As for the AA rates being high..... They AA rates. You are more than welcome to charge less if you want, but the AA rates act as a guideline. Last thing you want to do is OVERCHARGE the client for a call-out.

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    Have you considered a standard call-out fee? That way, you save yourself the time and effort of determining a cost for each trip. You might make some money on some clients and lose a bit on others, but I would say generally a set call out fee is suitable for most purposes.

    If you travel quite a distance to some clients, you could have two (or more) different call out fees. For example, x Rands for call-outs to clients within 100km, y Rands for call-outs to clients over 100km away.

    Just an idea.
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    I've also heard that AA rates are expensive, but a lot of consultants use them.

    With the new tollgates in place, I am sure travel costs will be charged.

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    Gold Member chrismine's Avatar
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    AA rates also include the running costs of your car - eg. tyres, service and wear and tear, not only petrol costs. Go make a few sums and you will be surprised how much it costs to keep a vehicle running.

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    Dave A (30-Jul-11)

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    Gold Member Singhms's Avatar
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    Thanks for all the suggestions and input.

    I do agree vehicle costs are high, but you also dont want too look unreasonable to clients, as some clients have their own internal rate per km that they normally use for their own employees, which is often lower than the AA!

    I like the idea of a standard sort of rate for a certain radius - call out type.

    Also if travel time is not charged for by actually having a line item on your invoice for it, it will have to be recovered in some manner i.e. built into your costs somewhere along the line as it is still your time even if you use the best route possible with no delays some journeys take alot of time, hours sometimes. Time is money! Just my take on it!

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    While you travel you do not earn money, so the client to some extend is getting personal service at their convenience at their premises, so charging for traveling is fair. If the client does not want to charge for traveling, get him to bring the job to you, and they will soon realise that you are reasonable.

    Clients tend to forget that time on the road to get to them. If you have a bunch of clients in the same area, they could share the traveling cost to the area.

    The cost comes from somewhere, either per Km or the hour rate charge when you are on site.
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    Diamond Member wynn's Avatar
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    Travelling is getting more and more expensive.
    I would say that when you quote offer two price options for a job
    i) Quote one price if the client provides transport at his expense, but at your convenience.
    ii) Alternatively quote the same price for the job and include x amount per Km you will need to travel there and back.

    Guess which option will be taken?
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