Should I Charge for Travel Time and Expenses?
This page may contain links to Amazon.com or other sites from which I may receive commission on purchases you make after clicking on such links. Read my full Disclosure Policy
As a professional organizer, you probably spent a fair bit of time figuring out how much to charge for your services, whether to bill by the hour or the project, and whether or not to offer free consultations. An equally important decision is whether to bill for the time you spend travelling to your clients’ location and any expenses you occur doing so.
There are many different ways to approach this, but as a business owner, there’s one thing you must always keep in mind:
Time is money!
If you have a fixed service area, it’s probably easiest to build your travel time and costs into your regular rates, but if you’re willing to drive greater distances, you need to make sure you’re still making a reasonable income once you factor in the amount of time you spend on the road, as well as the cost of gas and other expenses related to owning and maintaining your car.
You may wish to charge a set amount per mile (or kilometre) and add it to your invoice. You will, of course, need to include this in your agreement with the client. The problem I have with this method is that it is too precise, and it can get complicated if you take a wrong turn or need to run an errand on your way to the client’s location.
When I was operating my organizing business, I developed a system that ensured I was fairly compensated, without worrying about taking the shortest possible route to my clients’ locations so they wouldn’t think I was gouging them. Here’s how it worked:
- Anyone within 45 km (approx. 30 miles) fell within my local service area and did not pay a travel fee. I made a list of the cities and towns that fell within those boundaries.
- I also listed the places that fell within 50-74 km (approx. 30-45 miles) and 75-100 km (approx. 45-65 miles) and decided on a set travel charge for each of those areas. If the client was farther away than that, I would refer to job to another organizer who was closer.
- I had a higher travel charge for downtown Toronto, which technically fell within 100 km, to cover the inevitable high parking costs and time I’d spend in heavy traffic.
I included all of this information along with my rates on the printed sheet I kept on hand while speaking on the phone with clients, so I could quickly, easily, and confidently tell them how much their travel charge would be.
This system worked well for me, but it’s not the only option. If you have a different approach, please tell us about it!
Photo © iStock.com / killerb10