Jump to content

Charge different rates?


Mike D.

This topic is 7639 days old. Please don't post here. Open a new topic instead.

Recommended Posts

I have been developing databases for small companies as a side business for a couple years, but this is the first time where I had to travel. Over the weekend, I drove five hours each way to Vermont from my home on the Connecticut shoreline to meet at a client

Link to comment
Share on other sites

Hi Mike,

First of all, ask yourself what it is what it's worth to you. You mention more than a 10 hour round trip time away from your family and kids (if you have em) on a weekend no less.

Also, think of this, you were not able to work for 10 hours on any other projects. Unless you can develop and drive at the same time.

So in essence for you to perform services to this client "as requested", such as, on site,

Link to comment
Share on other sites

Stephen,

Thanks for the reply. I hadn't considered not being able to work that 10 hour block, especially since it would have been on his project. The database tracks the progress of a manufacturing process from receipt of raw material through several work phases to shipping of the final product. I went to Vermont at their request because the written requirements didn't fully describe all the "exceptions" that the database needed to accommodate.

Thanks for the advice, Mike

Link to comment
Share on other sites

I had the same problem.

I asked around and settled on charging for travel just one direction. In addition, I also charge half my development rate for 'sitting in the car and listening to music'. This works out for me and my clients. I only charge travel if it is more than an hour from my home base. Otherwise it is on me.

This is just me.

jerry

Link to comment
Share on other sites

Jerry,

Originally I had considered charging half the development rate for the drive time but it would have been for round trip, not just one way. I don't mind giving this particular customer a break on what has turned into a complex project, especially when he has never questioned my invoices and once even paid a bonus on top of the invoice. laugh.gif

However, I would not do that for any other customers.

Mike

Link to comment
Share on other sites

The answer to this problem depends somewhat on the clients expectations. I have found most clients don't like paying for travel time. I finally decided that for local (drive to) jobs I wouldn't charge for travel, but would have a minimum number of hours billed on-site which depended upon the travel time. I make this minimum equal to twice the round trip travel time. So for a client one hour away, there is a four hour on-site minimum charge. For overnight travel, I charge by the day for on-site work, usually based upon 8 hours. I doesn't matter how many hours I work. For travel only days, I charge 4 hours flat rate.

Just my practices, I don't claim they are any sagely advice. You have to do what is fair compensation, while not causing the client too much discomfort.

-bd

Link to comment
Share on other sites

Out of town vs. "local". Here in NYC it's a pretty easy distinction -- either I can reach you via local subway or bus or I can't (commuter rail doesn't count). Outside of a large city things get a little less obvious, but I think the concept is the same.

Of course, you might want to make special arrangements with good, long-time customers, 'cause they've "earned" special treatment. It all boils down to a judgment call. You don't want to hurt the customers, but you don't want to hurt yourself either.

In this case, I recommend charging for travel time -- after all, it's not your fault you have to go all the way up to Vermont. I presume you landed this client with the idea that the work would be done somewhere close to your home, and this trip is a special occasion. If true, and they don't want to pay for travel time, they can make someone with a computer and access to the files available closer to your home.

Remember, you're a professional, and deserve to be treated as such. (BTW, if you're not a professional, what are you doing to that poor client? So I grant benefit of any minor doubt.)

Link to comment
Share on other sites

This customer was my first and continues to be my best client. We have a lot of mutual respect for each other so my intent was to charge a fair and equitable amount, especially since I suspect that this client will ask me to travel to his facility in Delaware in the near future. In this case, I will "let my conscience be my guide."

Dan, Since I have become a member of this forum, I have really come to appreciate your sense of humor. Thanks

Mike

Link to comment
Share on other sites

I have always charged my full hourly rate for travel for the exact reasons that OceanWest gave. You could be working on another billable project during the time you are travelling. Plus I charge vehicle expenses on top of that (about 65 cents a mile). My exception is local travel (less than an hour). I don't charge for that time. There are also special situations where I have negotiated a different travel time rate for certain projects (ie., big ones).

Link to comment
Share on other sites

This topic is 7639 days old. Please don't post here. Open a new topic instead.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.