Fuel Surcharges and Networks

[starbreak462]

I have been in Business in Topeka, Kansas for 9 years and have done business with all the Major Networks, (I.e.) Lynx, Safelite, HSG Ect. Today I encountered a rather perplexing situation. I was given a Job form HSG to repair a customer’s windshield in Lyndon, Kansas. HSG left a message on my voice mail of the customer’s info and contact number but they could not verify the Insurance coverage. I have been this route before and knew I will wait until I get the Referral Number before I venture out to repair the windshield. (I have been burned by this type of situation before). I received a call from the customer and they asked if I got a call from HSG and they wanted to know when I would be down to repair their windshield. I informed them that I was waiting for HSG to call me back with verification of coverage before I traveled the 85 miles round trip to repair their windshield. I asked the customer if he planned on traveling to Topeka any time soon and he said he did not plan on that. I told him that I only traveled as far as the Shawnee County area (MY home County) and If I was going to come down to Lyndon (42.5 Miles South) 85 miles round trip, I would have to charge him a fuel surcharge 0f $22.50. (85 miles round trip @ 14 MPG in a 2001 Chevy Silverado = 6 gal @ 3.75 per Gal = $22.50. I did not think this was an unreasonable amount to charge in this economy with these ever increasing fuel charges. Well in this entitlement mentality that our Country is presently in, I guess I was dead wrong. Not only did the customer not think that was right but the Network also did not like this proposal! Right after the customer got off the phone with me he called the HSG network and told them what I proposed and they immediately called me to verify this information. I told them how can they, the Networks expect a small one man shop to EAT the fuel expenses of the ever rising prices without passing it on to the consumer. Well HSG decided to pass on me and to find another shop willing to travel to Lyndon, Kansas. (By the way I am the only Repair Only Shop in the Topeka area that still does mobile repairs as far as I could determine). Have you been to the Grocery store lately, Peanut Butter is $7.00; Maxwell House Columbian Coffee is $13.00 and so on. They are passing it on to the consumer (Us) so WHY CAN'T WE THE MOBILE WINDSHIELD REPAIR SHOPS AND GLASS COMPANIES pass it on to them??? I am an Independent repair company and Do Not belong to ANY of the Networks because I do not want them dictating to me how to run my business. I just can not fathom how these big Network companies expect us little guys to do repair for $40.00 to $65.00 and not charge a customer a fuel charge if they are out of their normal area of operation. Safelite will quote you a $125.00 Cash chip repair for Topeka, Kansas and that was when the Fuel prices were only $2.90 to $3.10 a gallon in the fall of 2011. Anyway I have rambled along too much I just wanted to know what other people thought of this current situation with Mobile service and rising fuel prices.

[jhickman1]

I havent had this situation but I would say you are completely justified. Evidentally you must be the closest WSR guy to this man. I know it doesn't look good for your reputation when you tell them NO Im not doing this repair without a surcharge. You probably wouldnt even make a profit without it so even if they send someone else, it aint gona hurt you. If its 85 miles for you, it may be 100 for the next guy! Surely he would make a stand too. They MUST provide this man with someone to fix his windshield, so it seems to me that HSG would have to pay the surcharge. I say stick to your guns.

[Coitster]

I completely agree with both of you. Not to mention the 2 hours of drivetime. Do you want to work for 10 bucks an hour. I sure don't.

[screenman]

Do you have to take work off them to be able to bill them, if not then I would say you have no problems. It seems from here many guys are dependent on the networks for top up work, this is not a good business model as I see it.

I would add that 12mpg seems a very odd vehicle to use for mobile work, you could certainly find a 40mpg vehicle that would mean you got into profit quicker. My Passat does 50+mpg all the time and a trip yesterday returned 60.9mpg, the less you spend = the less you have to earn to get into profit = less stress = more fun.

[Glasseye]

If Homer Simpson lived in the UK, he would say "$3.75/gall. mmmmmmmm!!" . Current Uk price averaging $10.13/gall.

[candyman]

I saw this earlier and I agree. I got 2 calls from HSG last week for calls 35 to 45 miles away. I told them I only took calls within a 25 mile radius. I did accept another call for one 27 miles away for 2 chips at a flat fee of $60. The other two were for $50 flat. I had a call from Lynx while I was on the phone with HSG. They gave the call to someone else since I didnt answer quick enough. I had a call from a customer yesterday 30 miles away stating that his insurance companty gave him my number and a PO number for a WS replacement. I told him I only do repairs. He got upset with me and demanded I come replace his windshield that he was not going to stay on the phone for 20 minutes to get someone else. I gave him a Ph # to a shop in his area that does replacements but are not mobile. He didnt like that either. So I gave him Glass masters toll # . He had his secretary put me on hold while he called the number. I thought that was odd. Gas here for Regular is now $3.85.

[Windshield911]

No way I do a ws repair on an 85 mile round trip. I would have just told them no. 22.50 is still not enough the way gas is right now. I stay only within my parish, usally about 30 miles round trip is the furthest I go. There are some cities that are right outside parish that I add an extra 15 for, and they are still about a 30 mile round trip, accept one is close to 40 miles round trip. 85, NO WAY.

[screenman]

One thing to think about on the journey is how many people, houses and businesses that do not know about you.

[blind_squ]

There comes a time in most abusive relationships when it's no longer the abusers fault that the abuse continues.
As long as there are WSR techs that willingly submit to this abuse, it will continue.

[glassdoctor]

I don't think it's a bad thing to add a reasonable surcharge for excessive travel, but it should be based off something other than "my truck gets crappy mpg". I can see having a mileage fee that considers the driving time and expense, just make sure it doesn't appear to the customer that it's a direct fee from the cost to fuel a 12mpg vehicle. Maybe $20-25 is ok, just make sure the customer doesn't see it as your gas bill.

Just to nit pick a little... it seems wrong to base a fee for excessive travel on the expense for the entire round trip. It should be a fee to cover the additional expense of traveling outside your coverage area. For example, if you normally cover a 30 mile radius, then an 85 mile round trip is really only a total of 25 extra miles. That's a half hour drive time and about $8 at 12mpg (or $3-5 with an average vehicle used in this type of work). The other 60 miles of the round trip would fall within your normal mobile service. It's really the time that is the larger factor, especially if you drive something that gets decent gas mileage. At auto repair shop rates, a half hour would be worth at least $30... but then again that's not what this is so it would be hard to justify. A $50k salary is about $25 an hour so that might be a reasonable basis for a fee? Not trying to offend anyone, just thinking out loud. :0