Posted by Glenn Strickler on 3/9/11 1:26pm
Msg #375615
Fuel surcharges .... Keep it real ...
I have received a few PMs asking me what I thing about raising fees because of the cost of fuel and were surprised I didn't voice an opinion. Do you base it on fuel alone, or do you base it on the total cost of your business model? Look what has happened to paper prices and other supply prices in recent months, so a fee increase needs to look at the total cost, not just fuel, in my opinion.
But lets look at fuel. So if you have a vehicle that makes 20mpg and you you do a signing that is on the edge of your basic area, say 40 mile round trip, then it will cost you $2,00 more in fuel than last year. Gas is about $1.00 more here than last year. Even if it goes up to 5 bucks, then that is $4.00 more Some people are asking for a $10 fuel surcharge and are mad when they don't get it or that company quits calling.
However, if you are in an area where newbie notaries are driving from another geographical area to your area for edocs at $75 to $85, you are going to have a tough time raising prices. On the other hand, if you are in an area where you can raise your rates, then raise them, but use a price that is both fair to yourself and the person who is hiring you. If you price gouge, people don't forget that.
I am also not going to run out and buy a car that makes 50 mpg either. When one of my vehicles becomes uneconomical to repair, then I'll take a look. But everything I got is paid for, 10 years old or older, so my DMV fees are low, my insurance is low. No interest, no depreciation. I ran the numbers. Even if a Prius will make 50 mpg under the conditions I use a car, just figuring that I can no longer work on it (I do all my own service and repairs right now) , the the monthly payment and interest, historical depreciation, Then you have higher insurance premiums, fuel would have to get to $12.00 a gallon to break even on my cost per mile of my old 20 mpg truck. Then there is that $5000 battery replacement at 100,000 miles that I didn't figure in. If it gets to a point where I need a car, I think I might look at the VW Diesel Jetta that gets 50 mpg without the batteries and electric motor and computer controllers. I rode with a buddy to Vegas in one who got 53mpg@70 mph .... Not bad. And it has a real nice interior also. Still not running to the car dealer .....
Anyway, there is my answer to all the PMs.......
| Reply by MW/VA on 3/9/11 1:35pm
Msg #375616
Good points, Glenn. I have to agree, the most economical
car is the one that's paid for. The more years you get out of it, the more cost efficient. I'm not thrilled with my purchase of a new vehicle & the payments, higher insurance, etc. I do take depreciation, so that helps.
Also, I wonder if anyone is considering that people with real jobs can't pass the higher fuel costs on to their employers. I can't imagine how people working in retail, for instance, can afford to get to work!
| Reply by John Tennant on 3/9/11 1:45pm
Msg #375621
You are absolutely right Glenn
I spent 40 years working, and then managing in dealership parts and service. I keep my vehicles 20 years. I properly maintain them and they cost me so little per mile that it is unbelievable. Gasoline costs will effect my bottom line, but not nearly as much as a new vehicle.
| Reply by Glenn Strickler on 3/9/11 2:22pm
Msg #375627
Re: You are absolutely right Glenn
John, what brand(s) did you sell?
I still think fondly of my 1976 F250 that I kept until 2002 and over 700,000 miles. Even though the highest mileage it ever made was 14 mpg, and I think I had a tailwind, even figuring if all the gas I bought over that time was $4 a gallon, it was still the cheapest vehicle in cost per mile I have ever owned, including my motorcycles. It never broke, and I only did one minor overhaul of the engine (valves, rings and rod bearings). If my current truck can only do 1/2 as well, then I won't have to buy another one.
But of course, I understand that there are people who want to have the latest and greatest with all the gizmos, then they will pay for it. Using gas prices to justify the purchase is only an excuse. Same as those who use gas to justify a motorcycle. It's not the real reason. One local dealer has already jacked the base price of the Prius above sticker again. I hate gougers. My favorite car to drive is still my 1967 Mustang. What a rattle trap and death trap compared to today's safety features, but I love it. Still would rather ride the motorcycle, though.
| Reply by John Tennant on 3/9/11 2:39pm
Msg #375630
Re: You are absolutely right Glenn
Glenn, over the years I was involved in parts and service for all of the GM vehicles, Mazda, Audi, Rolls Royce, Lotus, Bently, Lamborgini, and Ford. Quite a variety, and quite a challenge to service. I certainly learned what "customer satisfaction means to future business'. Applies to this profession as well.
| Reply by Moneyman/TX on 3/9/11 2:08pm
Msg #375626
For the local SA that have lost jobs to others that have been accepting the $75 offers one good thing may come out of the higher fuel charges, they may start turning down the jobs or charge more and the hiring company might be calling and paying the fees of the local SAs.
Between the higher costs of everything and the downturn in business some of the low ball accepting SA may decide to get out of the business all together. IMO, what little "profit" they may have thought they were making is even lower if they continue to accept those low fees. We all know that the companies that offer that type of fee does not deal well with higher fee requests so maybe even some of them will go out of business as well.
| Reply by BrendaTx on 3/9/11 4:03pm
Msg #375640
Excel Spreadsheet Time. Keep it REAL is right.
If you get 15 mpg and gas is $2.79, it costs you $3.72 in gas to go 20 miles; at $4 a gallon, add $1.61.
For 50 miles, the difference is $4.03.
For 100 miles, the difference is $8.07.
Keep it closer to home and keep your clients...gas will go down...don't lose your clients over an imagined jump in fuel costs.
There are just some folks that never should have gone into business for themselves and are still hoping to be taken care of, or something. Maybe shoulda been putting a little bit away when gas was lower.
I agree on the vehicles...keep them and maintain them...I'm not going to trade away my PAID FOR 15 mpg Explorer...no way. I love it.
| Reply by JanetK_CA on 3/9/11 4:41pm
Msg #375652
I suggest looking at your cost per mile
That gives a more realistic picture of what gas price increases are costing you - along with other charges. My paid for '96 Camry has over 170k miles on it, it's running great and gets at least 20 mpg. Routine maintenance last year was relatively minimal. (I do have to go get the inside door handle replaced this week, though.  It will cost me maybe half of what one month's car payment would.)
| Reply by Frances Kany on 3/9/11 4:51pm
Msg #375654
KEEPING MY OLD CAR FOR SURE
I love my car. It is a well maintained, well loved 1996 Buick LeSabre. Love my old girl. Just getting her broken in good. AND she gets around 25 miles a gallon. Buy a new car? NO WAY!!
| Reply by BrendaTx on 3/9/11 6:40pm
Msg #375669
Frances, that's what I call a cream puff.
LeSabres were fantastic cars. I had one myself in 1979.
| Reply by BrendaTx on 3/9/11 6:26pm
Msg #375665
Janet, I always thought the mid 90s Camry body styles
were the best. I don't care for them now...I loved the boxy look.
| Reply by JanetK_CA on 3/9/11 9:38pm
Msg #375680
Re: Janet, I always thought the mid 90s Camry body styles
I always thought of them as "sleek". I, too, preferred the older body styles and specifically choose the '96, which was the last year of that body type. (I bought it "gently used", in '98, and avoided losing the depreciated value driving it off the lot.) I also liked the idea that it had been around for several years and was well tested. I recently heard that 80 - 90% of them are still on the road! It's been one of the best investments I've ever made and I don't plan to get rid of it any time soon...
| Reply by Moneyman/TX on 3/10/11 12:43am
Msg #375690
Keeping my '99 Honda - Still gets 30 mpg (32-33 when new)
I put a new engine in it at 327K miles so it is staying around till the wheels fall off. 
Although it is a little depressing though when I fill it up and look at the price ($52) and remember the days I used to fill it up for less than $15. 
Oh my gawd! Now I sound like my dad telling me about the $0.05 movies!
| Reply by Lee/AR on 3/9/11 5:25pm
Msg #375662
Try this site... easy to use & figures are accurate
http://www.unfocusedbrain.com/projects/miles_per_dollar/
Miles per dollar is usually an easier way to figure your cost quickly. At least, I think so.
This nifty calculator is open on my desktop all day. Between it and Yahoo Maps, I KNOW exactly what it's going to cost me for 'this one' in 2 flicks of a bunny's tail. It also tends to blow their minds when I tell him....the gas alone costs $20.17 (or whatever). It's the 17 cents that gets 'em.
| Reply by Glenn Strickler on 3/9/11 5:56pm
Msg #375663
Re: Try this site... easy to use & figures are accurate
Now figure in maintenance, insurance .... woohoo.
It even takes $100.00 a gallon ....
| Reply by Lee/AR on 3/9/11 7:36pm
Msg #375673
There's an app for that, too.
"Now figure in maintenance, insurance .... woohoo."
I don't use it tho'.... prefer 'a nap for that'. Google it.
| Reply by jba/fl on 3/9/11 11:17pm
Msg #375685
That's cool! the app n/m
| Reply by Shoshana/AZ on 3/9/11 6:33pm
Msg #375667
Re: Try this site... easy to use & figures are accurate
Thanks, Lee. That is wonderful!
| Reply by Moneyman/TX on 3/10/11 12:34am
Msg #375689
Great little gadget. Thanks Lee. n/m
| Reply by S Peterson on 3/10/11 12:27pm
Msg #375734
Super Cool! Thanks. n/m
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