Is this a good time to raising inspections fees or at least charge for mileages for typical home inspections? Due to inflation and now a war that is impacting our energy policies, it may be time to consider it. For example, in my area, gas prices rose $.30 per gallon in a week. Lastly, I don’t see it going down in the not to distance future.
30 cents per gallon will make my 40 mile round trip 60 cents more expensive at 20mpg.
I make 60 cents every 25 seconds. Its not even on my radar.
30 cents in gas is not even noticeable.
The real question(s) is…
Do you operate your business as an actual business and incorporate a fee for travel/fuel into each and every inspection you perform?
If yes, do you revisit that fee at least once or twice every year to ensure you remain profitable?
What data do you use when you revisit your fees?
I use IRS Publication IR-2021-251 published on December 17, 2021 for use in 2022. In effect the Standard Mileage Rate for 2022 is $0.585 per mile for business use.
If not, why not??
When I retired several years ago, my price for a small condo was $475.00 and I had no push back.
Raise your prices…
You have put things into perspective.
Last year avg was $2.50 and now it is $4.00. Using your math - the trip would cost $3.00 more. Like you, this still does not hit my radar screen.
What does hit my radar screen is the overall slow down in my market. Inspectors are hungry and dropping prices while living expenses and operation cost increases.
We are being squeezed on both sides. I do not see a price increase for me in the near future but rather a focus on closing the sale when the phone rings. As well as spending less where possible.
Edit: I think inflation is more the driving factor at 7.5%. Applied to a home inspection @ $375 inflation would increase cost $28 to $403. Something to consider.
Like any business decision. You have to charge enough to stay in business and provide for your family. Any business will raise prices when confronted with increased costs. If your profit margin is diminished by fuel costs raise your prices. Simple.
Since March 1st where I am in Manitoba have seen a $0.80 increase per litre for diesel and reg gas went up $0.70 per litre. To convert for US gallons that is a $2.40 increase. It hurts. I am now adding a fuel surcharge for distances over 100km (60 miles). The reason why I did not increase my overall rates is a hope that fuel will go back down when our governments get their collective butts out of their ass and start opening up our wells and pipelines. In our business it is not like we can walk to an inspection or work from home. At least I am no longer doing renovations on buy and sell homes.
Almost $4/gallon here.
$4.27 per gallon and climbing in S.E. Michigan…
This was my first thought when reading the question - probably not the best time to raise prices in most markets. I am really sticking to my travel fees for out of town jobs though. I will sometimes waive them to get a job but not lately.
Here on Maui I think we have some of the highest gas prices in the country. I paid $4.70 at Costco yesterday. Small stations near my house are well over $5. In the whole grand scheme it’s not a huge factor with my business or life in general. The general inflation on everything else is much more noticeable. Probably because I’m still feeding three teenagers and go through pretty amazing quantities of food.
Yep, you guys are getting hit hard. Likely even harder at the grocery store. Obviously your state has added “shipping fees”.
Some higher gas prices are self-inflicted wounds.
When the price goes up, drillers have more incentive to pump, and to activate leases. With low oil prices a lot of the extraction is not profitable enough. High prices lead to high pumping, which lowers prices. (Mass) conservation leads to low demand, which lowers prices.
There’s a company buying up low value wells (mostly natural gas) and promising to extract from them:
See “A n Empire of Dying Wells”
I paid $5.25/gallon.
What’s a deal right now are EV’s. My EV pays no road user taxes whatsoever. Right now the bridges, pavement and freeways are all effectively untaxed for EV drivers. I just get paid when I inspect the chargers.
Nothing gets past the tax man for long.
Special Fees on Plug-In Hybrid and Electric Vehicles.
Remember , this is all a huge scam and hoax by the dems to push along their Green Deal BS. If they can force fossil fuels to be too expensive to use, and give invisible tax incentives for EV’s to appear to be saving the sheep huge money, guess what the future holds for this country!
While it’s equitable for EV’s to pay road fees… it also won’t move the needle much. The highway trust fund is big, but the cost of roads comes from many sources not just fuel taxes. There are massive and many hidden incentives and subsidies involved in energy: some at the surface like biodisel and rooftop solar, others deeply embedded in government spending including for oil exploration, and nuclear waste handling.
The trick is how to measure EV road use without creating a privacy issue. My EV charges from my solar system: those electrons never hit the grid at all. It would take some form of measuring miles driven to correctly account for the wear on the roads.
EVs are heavier also, and heavy leads to pavement wear. Not an issue for cars, but electric garbage trucks will be huge burden
You said it. Climate Change generates the fear needed to supercharge the economic/political agenda of socialism. The Green New Deal makes it law. Bernie Sanders does not hide from it any longer because our commie colleges had done their job with indoctrination. Interesting thing is this, we can have cleaner air and less dependence on fossil fuels without overhauling the way we are governed.
The world has proven reserves equivalent to 46.6 times its annual consumption levels. This means it has about 47 years of oil left (at current consumption levels and excluding unproven reserves).