stop charge

hoe many of you charge for a "stop charge" when you do applications.
how much?
is the charge hidden in the price?
what is the purpose?
if so how do you charge for the application?

thanks anthony

 

Ummm, what's a 'stop charge'?

Alan

 

I have not heard that term myself.

 

A "stop charge" would be the amount of fixed cost assigned to the service. Then you would add a proportional charge for the goods supplied and the time to effect the service.

Grossly simplified example: you have determined that, over the year, each time you stop for an application the cost (from fixed business costs) is $11.87. You apply 40# of product that you will charge the customer $18.50 for, and you spend 15 minutes at $100/hr (=$25). So your charge for the stop is $ 55.37.

If you are a big business, and just work on averages, you can charge $XX per thousand. On some you will lose money, on most you will make money, and on a few you will make a killing. If you prefer to know that each job is profitable, then you need to work with the numbers, or hire someone to do it for you.

 

thanks jim for the reply,you are good help
anthony

 

Lets say you have a 10,000 sq ft lawn you want to set up w/ a 5 round application. We look at what ouur cost per/1000 to purchase the product is. Say round one costs us $1.01
per 1,000 we 3'x our cost to $3.03. Then we subtract 3,000 from the original 10,000 sq. feet and factor in $29.95 which is our stop charge and multiply $3.03 times 7,000 -the remaining sq. feet. So we have $21.21 (approx) and the stop charge of $29.95 so we add the two so the total cost before tax is $51.16 for the application of round one.
No hidden cahrges just business