Pete C. wrote:
Stormin Mormon wrote:

I've been toying with making my business trip charge
dependant on gasoline. For example, choose a gas
station. My trip charge is 20 x G, with G being the
price of galon of gasoline. Labor rate is also 20 x G.
I'd have to figure out what's fair. But, the cost of
service would go up and down with gasoline.

Has anyone does this? Does it make sense?

Add a fuel surcharge based on the change in cost per mile since you
calculated your rates, multiplied by the service call mileage.

If you set your rates based on $2.50 /gal gas and a 15 MPG van, cost per
mile is $0.167 (rounded). If the gas is up to $2.75, cost per mile is
now $0.184 (rounded), a difference of $0.017 per mile, so a surcharge
for a 18 mile service call is $0.306.

Of course these surcharges make sense for trucking companies driving
thousands of miles, but for a service guy doing local calls, it is
probably better to just absorb the $1 variation in the trip cost.

I think for this sort of thing you're allowed to add a certain amount
based on how many $/mile it costs, on average, for car maintenance.
You need oil periodically, washer fluid, wiper blades, tires, and so
on. Take the yearly average for these expenses, and keep track of the
car's mileage over the year, and get numbers for each of these.

Maybe even car washes, because your car represents your business! ;-)

Have Fun!
Rich