Excess

Just interested in thoughts on this. We give our customers a fixed price for urgent deliveries from collection to destination.

If we encounter closed motorways or diversions, we take this on the chin, taking the rough with the smooth.

Recently on a couple of jobs we have subbed out, we have been invoiced more than expected due to the driver encountering more mileage due to diversions. (many many more miles).

We can't quote a price, be given the job, then go back and tell the customer the cost will be £30 more due to an accident on the motorway. Whilst I appreciate the driver has incurred additional expense is it fair to pass this on to the vendor?

M

No definitely not you can't charge a vendor any more money because of this, it's just one of those things and it rarely happens I'm just glad I have a job the only thing I would do Is call you and tell you the situation, I would only expect extra money for waiting time too many people trying to take the piss.

Agreed in resepct of YOU cant charge Your customer any extra as you have agreed a fixed price ( but with good business sense as I am sure yoy have you would have built a little insurance into that quote) But as a subbie my first call would be to you to ask what you wanted me to do bearing in mind that I would probably have given you my best price for the mileage quoted, if it meant a big detour then I would expect to be paid for it. However I would never give you an invoice with a big surprise on it. Never do anything off your own back without checking first is my motto.

I think an OD might have the right to ask but absolutely not the right to just stick it on the bill. I agree with AJM.

I have to agree with the above, but, I would have thought you would have discussed the price and mileage per job before hand and agreed on that, I personally cannot go on the OD/Subbies mileage, as speedo's can be out by a small %, & what if they say they had a detour, but really they were off - off loading their co-load that you didnt know about, and billed you for the privelage.. now theirs a thought, so I always go on exactly what Ive quoted to the client.

First off, if you've quoted a fixed price to your customer, that's end of - you charge the fixed price.

As a subbie, if you ask me for a price, I take the diversion on the chin. If you ask me for a rate per mile, YOU take it on the chin.

I price a job before I set off, so it's a price, not a rate. But with the 'big boys' (and several of the 'little boys'), they want a rate pplm so that they can simply allocate a job without the hassle of quotes from their subbies - with them if I see a big diversion, I would ring in and ask if they want me to go round and charge extra mileage, or sit in a traffic jam with the consequent delay (and no chance for them to change their mind if they find it's getting too long, because the jam may be on a motortway with no turn off).

HOWEVER in any such circumstance, it's absolutely not on for the subbie to simply do the diversion/time and charge without first contacting the vendor to ask for instructions BEFORE incurring the extra costs. Apart from anything else, surely the extra mileage will take extra time and the vendor MUST be informed as soon as it becomes obvious.

Dennis said:

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First off, if you've quoted a fixed price to your customer, that's end of - you charge the fixed price.

As a subbie, if you ask me for a price, I take the diversion on the chin. If you ask me for a rate per mile, YOU take it on the chin.

I price a job before I set off, so it's a price, not a rate. But with the 'big boys' (and several of the 'little boys'), they want a rate pplm so that they can simply allocate a job without the hassle of quotes from their subbies - with them if I see a big diversion, I would ring in and ask if they want me to go round and charge extra mileage, or sit in a traffic jam with the consequent delay (and no chance for them to change their mind if they find it's getting too long, because the jam may be on a motortway with no turn off).

HOWEVER in any such circumstance, it's absolutely not on for the subbie to simply do the diversion/time and charge without first contacting the vendor to ask for instructions BEFORE incurring the extra costs. Apart from anything else, surely the extra mileage will take extra time and the vendor MUST be informed as soon as it becomes obvious.

Same applies to the vendor contacting his client, explaining the situation for further instructions.. But pretty much spot on Dennis.

You pay your subbies a good rate anyway Gaz and the O/D should have contacted you BEFORE doing the detour. The loss should go to the O/D unless you know he is honest and you dont want to lose them. Or pay an extra 50% in good faith.

There is no excuse for charging more than agreed without first consulting with the vendor.

If the OD had taken a 15 mile shortcut at the cost of 20 minutes would he have given a mileage discount? Doubt it very much.

I would pay his bill at the agreed terms (not early), thank him for completing the only job he'll ever do for you and forget it.