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Thread ID: 63696 2005-11-20 01:57:00 Mileage charge wlowscrk (395) PC World Chat
Post ID Timestamp Content User
405603 2005-11-20 01:57:00 Thinking about adding a mileage charge to call outs and was wondering what is considered to be a fair rate per km. Would greatly appreciate some feedback on this - especially from those who work or live in rural areas.
Cheers
Wlowscrk
wlowscrk (395)
405604 2005-11-20 02:07:00 An electrician I know charges "fixed" rates for callouts within town boundaries, and rural areas an additional $0.80+GST per km. somebody (208)
405605 2005-11-20 02:40:00 We use 65c/km for long distance jobs (no mileage for local jobs, it's included in the call-out fee). Although we should probably increase that slightly given the higher cost of petrol.
A
andrew93 (249)
405606 2005-11-20 02:58:00 Based on 2 litre running costs, I charge 75 cpkm, town and country. That may not be practicable for charging domestic consumers, but for businesses it is a fair rate.

It is either that, or build the equivalent into your service rates. If you don't you are subsidising the cutomer and shortchanging yourself.

Cheers

Billy 8-{)
Billy T (70)
405607 2005-11-20 02:58:00 An electrician I know charges "fixed" rates for callouts within town boundaries, and rural areas an additional $0.80+GST per km.


Why do people hang onto this $xxxxx+GST crap, the end user is not interested in GST,
About ten years ago I used to tell customers as I added up the total " ..... that will be $56-75+GST" and while I was working out the total with GST they wrote out a cheque for $56-75, Sometimes if I am the customer I FEEL like writing on the cheque "$56-75+GST" just it get up their tit.

So I said to the boss "why don't you add in GST to the prices and round it up if you need to" and thats what he did.

I mean $0.80+GST is only 90 cents
Eric Richards (6226)
405608 2005-11-20 05:08:00 Why do people hang onto this $xxxxx+GST crap, the end user is not interested in GST,
A bout ten years ago I used to tell customers as I added up the total " ..... that will be $56-75+GST" and while I was working out the total with GST they wrote out a cheque for $56-75, Sometimes if I am the customer I FEEL like writing on the cheque "$56-75+GST" just it get up their tit.

So I said to the boss "why don't you add in GST to the prices and round it up if you need to" and thats what he did.

I mean $0.80+GST is only 90 cents
It's because we work to business to business. If we are working with home users (which we won't) then we quote a GST inclusive price. For a GST registered business the GST component of an invoice is 100% irrelevant, the true cost is the GST exclusive price. So no crap there as far as I can....
A
andrew93 (249)
405609 2005-11-20 05:50:00 It's because we work to business to business. For a GST registered business the GST component of an invoice is 100% irrelevant, the true cost is the GST exclusive price. So no crap there as far as I can....
A
The hell it is. We have businesses - we hate it. You still have to pay the damn GST when you are buying something even if you can claim it back.
It's the lamest excuse I've ever heard - I always include it in my pricing.
The business customer can figure it out.
pctek (84)
405610 2005-11-20 06:03:00 I'm sorry - where is the lame excuse? GST is irrelevant to the financial costs of a business given it is merely collected, any deductions made, and the nett amount passed on to the IRD. It's no big deal, there are no excuses, this is reality. Any GST you pay is deducted from the amount you remit to the IRD so there is no direct cost to a GST registered business. Sure there are indirect costs of working out the GST liability but hey you have to keep records anyway, so it's no big deal. This is a 100% acceptable method of doing business, provided you stipulate whether your price includes or excludes GST. Have a read of the advertisements in the back of the PC World magazine, companies like PB Technologies regularly advertise GST exclusive prices. So what is the issue? andrew93 (249)
405611 2005-11-20 17:26:00 Although I am not in the PC industry we still spend a hell of a lot of tim eon the road doing service work. I charge a $27.50inc GST callout rate during office hours which covers a 15km radius of our workshop, after this we charge $1.20 p/km. This may seem like a lot but if you add up your true running costs then you will find that this is fair. so if we had a callout 25 km from work we would charge $27.50 callout + $24.00 mileage, we "gently" bought this in about 9 months ago and have had very few complaints.

Charging mileage is something that businesses MUST do in todays world to stay profitable.
miknz (3731)
405612 2005-11-20 19:42:00 And is mileage charged to and from home base or just the out going trip? wlowscrk (395)
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