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Charging administrative Fees


TowZone

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07-25-06: BLKWILL Wrote,

 

Dose anybody charge them? tWhat is the reason for it? We dont let people work on cars in our yard or climb in damaged car just cause I have heared of nightmares with lawsuits. We charge a fee on cars that we get more then 3 calls on, salavage company sends TT to get car,customer wanting help to remove damaged doors/decklids, basicly any thing that we pull one of my techs into the yard. We sometime get multi. calls on one car that ties up the office help for hours. Just want some input from othersWill Cain
Chesapeake Service
Will Cain
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auto rescue said:
As you posted it helps off set the cost of telephone calls for vehicles in storage as well as computer program costs for storage and the inevitable calls for information after the vehicle has been release from insurance companies.
 
Kelly Neal said:
Along the same lines as John said you have insurance adjusters the need to look at the cars that take up your time and the salvage haulers that need help getting at the car because of tight areas and the sending of lein letters to the owner and lenders of the car that need to be notified. Kelly Neal
 
TowZone said:
"We charge a fee on cars that we get more then 3 calls on"

That in itself would be a hassle, instead why not just charge a nominal administrative fee. Most folks seem to be accustom to such fees of $10 or $20 tacked on and that helps to offset the administrative costs. Problem I have seen though is most consider it bomus money and don't set it aside for when the need should arise to use it. I guess that's because many companies in this industry live week to week.
"It's when they stop talking about you, that it's time to worry."
 
Oklatom said:
If your rates are set by legislation, perhaps by the state, be wary of setting administrative fees unless state law specifically allows it. I was charging a small fee, $5, when there was no key with the vehicle. You know, the ones who wreck out, but take their keys with in the ambulance. Bottom line when I got my state Highway Patrol inspection, they asked me for the ordinance which allowed such a fee...and told me anyone who complained would have to have it refunded...but then spent some time explaining how I could charge by the hour in such cases, and that obviously not having the keys would take more time...wound up with way to get $15.
 
BlkWill said:
Well we charge 20-40 dollars. Depends on # of calls, keys or not,wreck badly here forklift is need to move, After hour release(1min or 60min) tag removal ect. I figure it off my labor rate in the shop. I figure it at about .5 paid the tech or shop helper. becasuse most of the drivers are on the road, office lady stay in the office, and Im on the road or phone and maybe on computer with you guys. So is that fair in your eyes?Will Cain
Chesapeake Service
Will Cain
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TowZone said:
forklift is need to move - This would not be considered part of an administrative fee. This is normally considered additional labor which would be unknown when the original charges were placed on the bill. Personally, I would set the admin fee at one rate and not bounce around. 20, 30, 40 what ever you consider justified for the service provided. Normally the administrative fees do not exceed 20% of the normal impound rate. So if the normal rate less additional charges labor, dollies, etc. is $100 it would be $20 admin fee. If it is $200 it would be $40. Those are just the formula I would make to detremine the charge. I say come up with a formula a stick to it, charge labor at yard in addition. Itemize, many tow companies to not list the charges they simply add the total and wonder why Trucking Companies question the charges.
 
Mark K. Trueblood said:
Here in Palm Beach County, we are allowed a $35 Administrative fee to be charged to the owner(s) of a motor vehicle brought-in by Police impound after the 1st 24 hrs of storage. Any additional fees associated with lien letters, etc can be assessed to the tow invoice as well.
 
BLKWILL said:
Ron,
Thats 20% of the base tow? then how would you idemize the additional charges? Getting a car out is one thing but getting into a trunk that is smashed is not. Some of the salavage company will call when there about 1 hour out just to let us get the car ready for them, and we try to get them to so to help speed up the process for them as well.Will Cain
Chesapeake Service
410-287-2666
Will Cain
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Interstow said:
I don't see a problem with charging for your time. Someone from your company needs to escort the party to the vehicle and supervise them as they do whatever. Your time is $$$$. I think that the fee should be the normal hourly rate, charged in 15 min. increments.
 
TowZone said:
That would be classified as a set out fee which is sperate from an Adminsitrative Fee which would be considered office related. the 15 min intervals Steven sugested sounds fine/fair to me. We rarely ever assisted anyone in getting vehicles out yours ago. Just pointed them in the right direction. Though I can understand why this is done these days. I don't remember ever seeing drivers going through other cars then they were after and I don't remember seeing them search the car. We have drivers on camera walking all around the other cars even searching inside them. Times are just different or the cameras just make it more visible. I don't know, but set out charge may become the norm in a few years.
"It's when they stop talking about you, that it's time to worry."
 
BLKWILL said:
Thanks Ron and Steve for your input.Ill try that 15 min. of the shop rate. My yard has 4 camaras,my office and 2 gates as well, so that is another reason for the charges as well. My highway storage is capped so I can't recoupe it from that. Ill try a set out charge just to see if that is easyer/customer ok.Will Cain
Chesapeake Service
Will Cain
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I see that this is an old topic.... how did you ever make out with the admin fees Will?

 

We have been charging a 10% admin fee on all recovery invoices for a few years now.  I only put the admin fee on the labor charges.  Very few times have i recieved a complaint, and when I did I just let them know that it is to cover the time talking to them, writing the bill, taking the ins company calls, escorting them to the yard, etc.

 

As for a fork lift or something like that, I would be charging accordingly.  It wouldnt have anything to do with admin fees.   Typically I am a $95 minimum to do anything (1 hour labor minimum)

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All of Law Enforcement Tows whether it's a accident, Impound, etc. we check and verify current registration and send Certified Letters out on every single one and all this required paperwork takes time = Administrative Charges $50.00 is added to each invoice, all vehicles towed without keys is also a added charge.

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HD recoveries get charged an admin fee....photos, calls and questions from law enforcement and customer and driver and insurance and salvage folks and sometimes salvage buyers and brokers and driver's family and on and on and on, and each of these folks wants to come in the yard, and them there are folks who have to be kept out of the yard like attorneys and investigators, and environmental folks have questions and requirements, and health department is often involved, and greater recordkeeping.... Yep, i charge an admin fee.  And for those folks who want to play let's make a deal .... The deal is clearly spelled out on my invoice: pay me in full within 7 days and I'll waive the admin fee.  That's a justified discount....a big recovery paid within a week GREATLY reduces administrative costs!

 

LD...nah, no admin fee there.  

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