TOT: Call out charges?

[John Rumm]

I prefer (a) since it avoids any assumption being made about what a "call out" is - someone might argue that they did not call you out, but booked in advance. Whereas a "minimum fee" is less ambiguous.

A little also depends on how you charge the part hours. Say you do a job that actually only takes 5 mins on site, you could price it at £45 on the basis that is the minimum invoice, or you could say £25 + £10 - the first bit covering your overhead cost of getting there, the second bit being your smallest unit of chargeable time - assuming it was half an hour at £20/hour.

On the subject of rates, you have been charging the same for some time now - perhaps an increase would be in order - at least in line with inflation. `

[RubberBiker]

You gotta stress the positive in the FIRST FEW WORDS:

The first hour is charged at =A345, THERE IS NO CALLOUT CHARGE !

After the first hour, our charges drop to JUST =A320 PER HOUR !

AND - if a job doesn't take the whole hour - we will do any little jobs* FREE OF CHARGE in the remaining time !

(*little jobs include such things as moving furniture, glue repairs, reattaching door handles and other work by agreement)

[chris French]

Yep, I think I agree with that.

[chris French]

In message , RubberBiker writes

I always feel that someone saying 'no callout charge' sounds a bit dodgy to me

[Keith W]

Or, to paraphrase the great Stanley Holloway, "£45 pounds per hour or £45 pounds per part of per hour" ;o)

[Owain]

For a service business where the major cost is labour and the primary customer base is consumers, staying below the VAT threshold is highly desirable.

Owain

[nimbusjunk]

.

why would you be quoting private non VAT registered individuals a non VAT exclusive price. In my business I expect to be quoted ex VAT as that is what it costs us

In my personal life I expect to be quoted VAT inclusive prices as that is what I HAVE to pay The exclusive price quoted to a private individual is fiction

Perhaps they expect you to abide by the

The Value-Added Tax Act (1991) which states:

Part X - Miscellaneous

1. Prices advertised or quoted to include tax

Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation' state that the price includes tax, unless the total amount of the tax chargeable under section 7(1)(a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that-

i) where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact;

ii) price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;

HTH Phil

[Owain]

Possibly because quoting ex-VAT prices to consumers is illegal?

Owain

[Owain]

along with "discount for pensioners"

Owain

[The Wanderer]

If you undertake emergency callout work you should specify this separately. You should also make sure you charge enough for being dragged out of a warm cozy bed at 1 in the morning, and charge at time and half outside normal working!

'Minimum charge is £45, which includes up to 1 hour's labour. Thereafter £20 per hour'.

'If called outside normal working hours, a callout fee of £xxx will be payable for the first hour, thereafter £30 per hour.'

That way you're distinguishing between your normal hourly rate for work and your charges for an emergency callout.

[withheld at Jeff Smith's reque]

If you charge a "call out" fee, some people might interpret that as including the time it takes you to travel to the job. By saying that you charge the first hour implies you start charging from the time you start the work. I'm not saying *I* would interpret it like this, just that it's one possible way of viewing it. You may want people to think that - or you may even charge travelling time.

[RubberBiker]

I agree with "discounts for pensioners", because I simply do the maths in my head "if one customer pays under the odds, another has to pay over the odds".

But "no callout charge" is just that.

I have the reverse concern in fact, that their MO is simply turning up and saying "no can do", and collecting the callout charge.

[Andrew Gabriel]

Ah, but you're missing the marketing spin...

"!!NO CALLOUT FEE!! and only £45/hr!!"

[Dave Liquorice]

That's my view as well. Use of the words "call out" implies that TMH

*will* come out at 3AM to fix something, I don't think he is into that sort of work.

I like some of the other phrases along the lines of "There is a minimum charge of =A345 per visit that includes the first hour of work. Further hours are charged at =A320 per hour."

Note the "per visit" and "work". The first stops punters claiming that as you were there yesterday/last week/last year an they paid the higher rate then they now I have you for =A320/hr. The second excludes travel time, which presumably is paid for by the first hour being higher anyway.

One might want to think about how one deals with a job that takes 70 mins. Punters will feel hard done by being charged for two full hours. A statement saying that hours are rounded up to the next 15 mins or 1/2hour?

[Clive George]

Quotes ex-VAT annoys me - if you need to make the VAT clear, provide both.

[The Medway Handyman]

I am a bit cheap to be honest, but like most small business's afraid to increase prices during a recession.

I only work for whole days about half the time, when doing 2 or 3 smaller jobs the £45 first hour kicks in. Plus I mark up materials.

[The Medway Handyman]

Indeed it is. If I thought I was approaching the threshold I would turn down work to stay below it. Admin nightmare & would cause me to increase prices by 15% & therefore be less competitive.

[The Medway Handyman]

True.

[The Medway Handyman]

I didnt want to confuse the question by including this, but I will do smaller jobs for a minimum £30 - up to half an hour.

I charge in half hour periods, so in the example it would be £55.

[The Medway Handyman]

If its just over the hour I will just charge an hour. Half hour increments.