Wondering if someone can help me out, I want to charge for travelling costs for a new service I have in mind in Auckland, mine is a Ford Ka 2000 which does about 6.5l per 100km, trying to work out what a reasonable charge out rate would be based on km travelled (ie cost plus small profit), thanks
kazbanz,
Aug 14, 11:31pm
$1.00 a km
socram,
Aug 15, 12:56am
Agree. Are you also charging travelling time? My set rate a few years ago was 80c per km, over 20kms per client. Over that, I'd probably also be charging travelling time at my standard rate.
Getting stuck for an hour travelling down Onewa Rd. for example is non-productive time, so if your charge out rate was say $60 an hour, mileage might be the least of your worries.
That $1 per Km has to cover ALL running costs, not just fuel. Rego, insurance, servicing, depreciation etc.
bagal,
Aug 15, 8:40am
You could use AA rates? About 65c/km for 1600-2000cc. I think that is based on a newish car. That is just for the car, doesn't include a recovery for your time.
medcare,
Aug 15, 9:39am
For a small car like that I'd settle on 70c/km
IRD and AA rates often peak at 65-70c/km for the first 5-10,000 kms then drop back after that.
If you expect your driving time to also be chargeable then add your hourly rate to the following equations.
For Auckland city driving, including a bit of on/off Motorway during non peak hours, then estimate an average driving speed of 40km per hour.
For driving long distance on the open road estimate 80kms per hour.
So an hourly Auckland city would be 40kms/hr @ 70c = $28/hr plus your time at $45 hour (or whatever) = $73/hr, time and mileage. For open road driving 80kms/hr @ 70ckm = $56 + $45 (or whatever) = $101 hour, time and mileage.
bwg11,
Aug 15, 9:48am
Think it depends greatly on your type of business and how long each job is. For IT where the average job is about an hour, I used a flat rate for call-out in the metropolitan area to cover travel, then a fairly savage hourly rate for time spent on the clients premises. Out of town jobs I charged a per km rate, plus my hourly rate.
aredwood,
Aug 16, 10:40pm
Also make sure you tell your insurance company you are using your car for commercial purposes.
differentthings,
Aug 17, 1:39am
IRD rates is 77c for the first 5,000k
sumr1958,
Sep 19, 2:00am
thanks to everyone for their contributions
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