posted
O.K., simple question...I have a shop rate of $30-$35 hr. I'm gone for an hour to deliver the customers sign (1/2 hr up and 1/2 hr back). That's a $20 trip charge but, should I also pay myself the $35 extra per hour just to sit in my truck and drive?? Of course I should but, it seems as if I'm milking the customer in some way. When I'm productive, $35 hr seems good but when I'm driving, I don't feel productive. What's your take on hourly wage with a trip charge?
------------------ Corey Wine signCONCEPTS Airdrie, Alberta, Canada The ex-Californian Canadian signconcepts1@home.com
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I don't have a retail space, and never allow customers to "stop by" for anything. You did'nt say if you have a retail shop or not. If they order a sign, and you have a shop, they should pick it up.
I deliver everything, so I figure 30 bucks into my price for larger jobs.
You can't hide $30 bucks into a $70 dollar pair of magnetics, so I deliver them on the same day as a large order. I stopped thinking in terms of what I'm making an hour, and started concentrating on the weekly sales/profit total. You win some/ loose some with the delivery charges.
Now time behind the wheel is a chance to relax instead of thinking I'm losing $$
------------------ Mike Duncan Lettercraft Signs Alexandria VA
I have never let schooling interfere with my education - Mark Twain
Posts: 1328 | From: Centreville, VA | Registered: Oct 2000
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Corey, Time is time! Whether it is spent on sales, production or delivery it needs to be covered in the price of the job. If the customer's time is too valuable to come in to see about a job or pick up finished work then is your time worth less? I don't mind 'dropping' off a job if I or my helper is going by their place of business without a delivery charge but to stop work and make a delivery for 'free', not. Figure up how much time you are giving away each week in sales calls and deliveries, multiply this by your shop rate and you can see a lot of money (time) thrown away. If you're losing 10 hours a week that's $300-$350 at your rates. If you want to continue 'giving' your customers this 'service' you might want to raise your rates to cover this lost production time. Average billing time per week in a small shop breaks down to about 50 to 65 percent of the time you put in, the rest is taken up in 'running' the business, that time needs to be covered in the overall pay you want from your efforts. You can either work a few extra hours each week at your current rate or go up and work less to receive the same pay. Simple solution, ain't it? I bet you'll pay a higher rate for a plumber or auto service work than you are charging for your creative work, the plumber won't make a free house call and the mechanic won't haul your car to his shop for free.
------------------ Larry
Elliott Design McLemoresville, Tn.
If you can't find the time to do it right, where gonna find the time to do it over?
Posts: 486 | From: McLemoresville, TN. USA | Registered: Nov 1998
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posted
Corey, If your shop rate is $35/hour and you have to be away from the shop for delivery for an hour, you're spending shop time PLUS gas, wear and tear on your vehicle. On top of this, you are using that vehicle commercially and having to pay insurance on it as well.
The least you could do would be to charge your shop rate.
You are spending time that could be spent making signs and wearing out your expensive vehicle to boot.
Don't feel guilty, truck drivers sit behind the wheel all day delivering stuff and getting paid for it. Why shouldn't you?
------------------ Wayne Webb Webb Sign Studio creators of "woodesigns" "autograph your work with excellence" webbsignstudio@digitalexp.com
Posts: 7405 | From: Chipley,Florida,United States | Registered: Oct 1999
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The way I do it is... Within 10 mile radius free delivery(cost is covered in price of sign). Over 10 miles is $1.00 per mile each way. I do the same with installs.
I have several customers that are 30-40 miles out. This works real well for me. In this area, if you travel 10 miles you are out of town and can drive 65 mph. That makes $65. per hour. It's not quite as much as my shop rate, but it's not bad for windshield time.
------------------ Don Hulsey Strokes by DON signs Utica, KY 270-275-9552 sbdsigns@aol.com
I've always been crazy... but it's kept me from going insane.
Posts: 2314 | From: Utica, KY U.S.A. | Registered: Jan 1999
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