Dealer Travel Service Charges

[DPS]

I'm a dealer and feel that a reasonable travel fee should be charged - outside a pre-determined radius of the store.  The radius may be 25 miles, it may be 50 miles, but inside that radius is free, outside pays a fee based on how far outside the radius they are.  The key is that the customer knows the radius and the fee up front, at spa purchase time.  Our policy is free delivery of the new spa and no travel fee charged for service inside of a 30 mile radius from our store.  Outside the 30 miles, the customer pays $1 per mile each way.  Example: customer is 50 miles away - the delivery charge and service travel fee is $40.  At times, and at our discretion, we may elect to waive the service travel fee.  My sales staff can never waive the delivery fee.  If they did, I don't feel it would be our right to charge the service travel fee.

[East_TX_Spa]

We NEVER charge a travel fee or ANY fee for warranty work.  After the warranty expires, it is $65/hour for service with NO added on travel charges.  We have always done it this way and our service department is actually profitable.

We have a HUGE territory (all of NE Texas and NW Louisiana).  It's just another part of what has made us very successful over the years and maintain a 67% referral rate on new customers.

It's just a part of doing business the right way, in my boss's opinion.

Terminator

[The_real_Clown_Shoes]

$5 fuel surcharge on non-warrantied items that we charge to all customers regardless of location.  We have about a 60-75 mile service radius.

[Brewman]

This surcharge stuff is hitting all over the place, it's not limited to spa people.  

The place that hauls away our garbage has imposed a fuel service charge, for one.  
I look at it largely as a way to raise prices while appearing to remain competitive.  
If someone asks, our garbage service hasn't raised their rates in a year or two.  But my quarterly bills keep going up because they're just tacking on extra stuff to the back end of the bill.

Happens on my cell phone bill, and my cable TV bill too, and banks are getting in on it, too.

The place I take my vehicles for service adds a certain percentage onto the back end and calls it shop supplies, or disposal fees.  
I found out from someone I know that this is their way of adding revenue without increasing their prices.

[wmccall]

Brewman,

Your are so right in that so many American businesses and companies are looking for ways to make their prices look lower by all the add ons.  In many negotiations, or purchases I'm known to say, "Ok, that is what the price is, but how much do I make the check out for?"  But since this is a thread about Spa service I like what DPS said, " The key is that the customer knows the radius and the fee up front, at spa purchase time. "

Whatever the fee is, or if there is one, UPFRONT is great with me.

[hottubdan]

Problem with the customer knowing upfront model is that things change.  I can have a policy one day that says no travel charge, but things change.  Unless specifically excluded in purchase agreement, I may have to change policy and, unfortunately, customers who in the past were not being charged are now being charged.

A side note.  I was speaking to one of my credit card companies last night.  I learned the grace period on my card is from when I make the charge, until the due date.  That was a surprise to me, but I'm sure it was disclosed in some mailer with fine print.

[wmccall]

Problem with the customer knowing upfront model is that things change.  I can have a policy one day that says no travel charge, but things change.  Unless specifically excluded in purchase agreement, I may have to change policy and, unfortunately, customers who in the past were not being charged are now being charged.

A side note.  I was speaking to one of my credit card companies last night.  I learned the grace period on my card is from when I make the charge, until the due date.  That was a surprise to me, but I'm sure it was disclosed in some mailer with fine print.

I see what you are saying. Perhaps the disclaimer "Subject to change"    You have to watch those credit card companies, their trick is to make a change and bury it in the fine print with the statement that says, The next use  of your card signifies your acceptance of this fee/charge/change/policy. My bank does that with monthly statements as well

[Gary]

Almost all warranties do state a travel fee can be accessed. It is up to the dealer.