Breakdown van Km rate

Madmechanic

Hi. Im currently in the process of getting geared up to go full time self employed repairing commercials/plant/tractors . I want to do this right and stick at it so i need to have all my ducks in a row starting out. Somebody on here might have experience of using a similar service basically I will have the van fully kitted out with compressor/generator oxygen/actylene air guns porta powers etc. I am a bit confused as what to charge for travel and labour. I was thinking basically somewhere around 90 cent per km for travel plus VAT. 1 way so if a job is 10 km from me the total travel fee is 9 euro + VAT. I dont know if people ever charge travl both ways but i calculated up that should cover my fuel well and I wont be charging any labour times while im on the road labour starts hen i reach the job. Then for labour I was thinking about 25 euro plus VAT per hour minimum 1 hour and also was thinking if somebody has me for wants me for a full day ( 8 hours) they pay for 6 so a full day is 150 euro+VAT. I want to build up repeat customers and i want to charge prices that are both fair to them and fair on me so everybody is happy. Any input is appreciated.

kay 9

Instead of charging by the km why not have a call out charge. I'm in the plumbing game and it's handier than mileage. 25ph seems OK. What part of the country you in? Looking for a good mechanic myself at times. Have tractors, jeep, cars, digger & Dumper. My usual lad is horrid busy and my other fella is a wizard but takes ages to come out,sometimes weeks.

Madmechanic

I just taught it would be fairer to do km rates because there is a couple of fellas local with fleets that i work for and i could be in their yard a couple of times throughout the day so it would be hard to have a call out charge say if call out was 25 and i was in their yard twice its hard to charge €50 for driving 6km 2 times? I am based in laois, i am actually out of the country at the minute working im goin to wait till the summer probably around may to go back and get set up when the weather is on my side because iv a shed to put up aswell

kay 9

I get ya, maybe km is better in your line of work. Best of luck starting up. Not easy in these times. You're the other side of the country from me though

Madmechanic

Cheers thanks for your input. I know its tough but ya have to start somewhere and i think if im fair and not be trying a get rich quick idea il go ok

Jim from Cork

I hope your venture goes well for you MM!
I think you are short changing yourself at charging €25 per hour. You should differentiate between types of work. EG: You will get more for working on a truck than a trailer. While €25ph might seem reasonable think of your overheads!! If you are successful you will also have to pay a decent chunk of your income in tax too.

Agri-Dealers all round are having to compete with "Roadside Mechanics". €40 would be a minimum hourly rate for many dealerships. €60 would be the desired rate for many (most were achieving more in the good ould days). I would suggest that any dealership going below €40 are likely to be losing money on labour.

You might find that you are better off creating a "Pricing Menu" for yourself. This would be advantageous if you are "fast & efficient" Also consider the equipment you have that makes you more efficient and effective - special tools and the like. As I used say when in that area: "It's not what we charge per hour but rather what we DO in that hour"