Anyone's Prices Being Affected By Rising Cost Of Gas?
- Thread starter Ron
- Start date
No, I still charge a fee of $100 if I travel over 50 miles each way, another $100 if its over 100 miles, etc
I have always taken into allowance the distance I have to travel x gas per gallon. That is why I do not have Canned Packages. Each event is unique.
My travel charge is adjusted based on current pricing, so much like the Canute, that can fluxuate.
Even if gas went up $1.00 per gallon; realistically per gig what does that represent? 5 or 10 bucks? Your pricing should take into account these sorts of variables. different if you were driving 100 miles per day....
Do you adjust them when the price of fuel drops?
Do you adjust them when the price of fuel drops?
Do the math when you're driving a Triton 5.4 V8 and pulling a fully loaded 6 x 10 enclosed trailer.
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Most of my events are in New Jersey so I use that as my excuse to fill up for the week. I did increase my rates by a 100.00 which helps with the gas. NY is about $4.60 per gallon and NJ might be about .75 to 1.00 cheaper per gallon.
Let's see
15 events a year
average distance 45 miles to the gig one way
15 miles a gallon so 3 gallons to get there and 3 gallons to get back.
Price difference 1 dollar more per gallon then last year
6 dollars times 15 events = $90 dollars
Question I'm wondering is how much i should increase my rate to compensate for the extra cost of fuel?
15 events a year
average distance 45 miles to the gig one way
15 miles a gallon so 3 gallons to get there and 3 gallons to get back.
Price difference 1 dollar more per gallon then last year
6 dollars times 15 events = $90 dollars
Question I'm wondering is how much i should increase my rate to compensate for the extra cost of fuel?
Guys want us to teach them to be DJs,,,,now the new trend is that DJs want us to teach them Math!
I wish I got 15 mpg when pulling....hell, that's highway miles when empty.
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Do the math when you're driving a Triton 5.4 V8 and pulling a fully loaded 6 x 10 enclosed trailer.
I haul a trailer with a Sante Fe...my gas mileage drops 50% when hauling.....gas here is 1.30 per liter; you don't have to tell me about the cost of fuel...
Let's do that math
gas at 2.00 per gall; gig is 200 miles (round trip) . Lets say your truck fully loaded gets 10 mpg
cost of fuel for that gig is: 200miles/10mpg = 20 gallons x 2.00 = 40.00
Gas at 3.00 per gallon: 20 gallons x 3.00 per gallon = 60.00
So that's cost you a whopping 20 bucks.
Randy, Do you give your client a break when fuel drops a buck a gallon?
If you were gigging 7 days per week driving 1000 miles per week.....yes, the increase can affect you dramatically.....the weekend warrior; for the most part ...nominally
Certainly you can hike your rates overall, that's your prerogative...I buy at times $20.00 worth of music for an event; sometimes I buy less. I don't charge the client more.These sorts of expenses are factored into my overall pricing structure. I charge more to drive to a gig that's 100 miles away; I also factor a hotel room.
What irks me is when people talk of a "fuel surcharge" tacked onto the already agreed rate on a signed contract.
YMMV
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Do the math when you're driving a Triton 5.4 V8 and pulling a fully loaded 6 x 10 enclosed trailer.
I wish I got 15 mpg when pulling....hell, that's highway miles when empty.
5.7L V8 here! I feel your pain!
@Steve LeBlanc -- I would never mention a fuel surcharge to an already agreed upon rate. My current fees factor in all things, such as the music purchases that you mention. I just had a New Music Wednesday this week where a bunch of used discs from Amazon arrived .... I just love Amazon for picking up used cds!
Anyways, back to your question and a clarification from my original response. Not every inquiry, do I adjust for the price of gas, but I am aware of it. My current fee will accommodate 95% of them and my current travel fee (which incooperates a few things such as gas, my and my assistance's time, wear-n-tear, etc) is going to be sufficient for the rest. But, since I do live in the Corn-belt and we have some roads that were built around landmarks (if you can call a cornfield a landmark) sometimes I'm booked for places that aren't really optimum for pulling a large trailer around. The hills and curves will eat gas mileage really quick, so I do have to factor in some additional costs for gas since it's not the norm.
That's just an example of a time I would look at adjusting my travel fee a bit. Sounds like we do things much the same when it comes to setting fees; I don't break them out for the client to see, I just roll them up into one set fee that incooperates all my expenses and expected profit..... which btw are at their all-time highest @ an average of $1025 this year for a 5 hour event. (That's low for some standards, but here in Amishville USA, it's pretty darn good!)
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Anyways, back to your question and a clarification from my original response. Not every inquiry, do I adjust for the price of gas, but I am aware of it. My current fee will accommodate 95% of them and my current travel fee (which incooperates a few things such as gas, my and my assistance's time, wear-n-tear, etc) is going to be sufficient for the rest. But, since I do live in the Corn-belt and we have some roads that were built around landmarks (if you can call a cornfield a landmark) sometimes I'm booked for places that aren't really optimum for pulling a large trailer around. The hills and curves will eat gas mileage really quick, so I do have to factor in some additional costs for gas since it's not the norm.
That's just an example of a time I would look at adjusting my travel fee a bit. Sounds like we do things much the same when it comes to setting fees; I don't break them out for the client to see, I just roll them up into one set fee that incooperates all my expenses and expected profit..... which btw are at their all-time highest @ an average of $1025 this year for a 5 hour event. (That's low for some standards, but here in Amishville USA, it's pretty darn good!)
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I've been thinking about this ever since the news started reporting that gas prices could rise to as much as $5/gal on the news.
As of right now I have shortened the max travel range from 60 free one-way miles down to 40 free miles.... if current prices rise into the $4 range I may re-evaluate my mileage settings.... either decreaseing the distance or increaseing the charge per mile.... all depending on how many gigs that are booking are within or over the current free mileage limitations.
As of right now I have shortened the max travel range from 60 free one-way miles down to 40 free miles.... if current prices rise into the $4 range I may re-evaluate my mileage settings.... either decreaseing the distance or increaseing the charge per mile.... all depending on how many gigs that are booking are within or over the current free mileage limitations.
@ Randy - I think we agree..... my rates reflect projected travel expenses. I believe Cap, at one time, had proposed a surcharge clause in his contract; that if fuel price went up he had the right to tack on a "surcharge" to the already contracted upon price. That, I don't agree with. If he wants to do that; it's his show.....
The big issue is; how do we know today, where price will be in 6 months; 6 months ago it cost me $58 to fill my vehicle; yesterday it was $80.00. When I quote on events where travel is required the rate reflects, is some respects, a component that accounts for gas consumption + hotel + meals.... I think as well one has to be careful in the per mile surcharge, especially if it is visible on your quote.
The big issue is; how do we know today, where price will be in 6 months; 6 months ago it cost me $58 to fill my vehicle; yesterday it was $80.00. When I quote on events where travel is required the rate reflects, is some respects, a component that accounts for gas consumption + hotel + meals.... I think as well one has to be careful in the per mile surcharge, especially if it is visible on your quote.
@Steve LeBlanc --- I wish I had a crystall ball! For me, I just adjust accordingly as needed and it all will wash itself out in the end. For example, back to the music purchase; in my fee, I have calculated that I may have to purchase a certain amount of music per gig. Sometimes I go over that amount and sometimes I don't have to purchase anything, so it all washes itself out over the long haul.
@eddieyourdj --- that would be sweet!
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For me, I just adjust accordingly as needed and it all will wash itself out in the end. For example, back to the music purchase; in my fee, I have calculated that I may have to purchase a certain amount of music per gig. Sometimes I go over that amount and sometimes I don't have to purchase anything, so it all washes itself out over the long haul.@eddieyourdj --- that would be sweet!
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So far most of my gigs are within 30 mins of me, so it has not really been a huge issue. However, I have a few booked later on this year, where there will be some travel involved. But since those people are already in a signed contract, I have no plans to add a gas surcharge onto their total.
I would say for normal gigs (<30 miles each way) suck it up .. and then modify your distance charges to accommodate big swings either way.