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Covid, Extra deliveries, good customer, how would you handle this?

10/8/20       
Mark B Member

Wondering how you all are handling a situation Im sure many of us are dealing with. We have two at the moment.

Good customers, decent jobs but not miles of fat, forget about factoring in the covid. Health care jobs, went on stand-down feb/march. Are now filtering back on line but with very cautious schedules so facilities are allowing progress in blocks of completion (not turning loose of the whole project). So now the contractor, who is pretty much in the same boat, is trying to get the job complete working on small portions of the project to completion before they can move to the next area. These are good customers and trust their honesty that they are not being able to bill any additional and are just trying to get done (one of these was to be 100% in June and is now looking like December for final completion given this block completion).

This means now instead of being able to ship the entire job in one shot we are having to ship a 70 unit project in blocks of 8, 9, 10, 15, units. To add to that the job is 2.5hrs one way from the shop so its a nearly 6 hour round trip (delivery only no install).

Ive had the conversation with top dogs of both and they have both been accommodating stating that they will just have to pay the haul bill because they have no other option (there is no ability to store any of the material on-site nor do they have the capacity to haul the material themselves picked up from the our shop).

Im doing a sanity check of trying to be a bit fair and chop the small deliveries a bit given the small lots can go on a smaller vehicle but the 6 hour day and 230 (round trip) miles is what it is.

I know I can just bill and say its on them... how would you handle it?

A line item billing for 6 hours truck/man is a whopper.

Thanks

10/8/20       #2: Covid, Extra deliveries, good custo ...
TonyF

Mark B:

I suppose it really depends on how good of a customer they are. If they are willing to pay the full cost then I am not sure what the issue is. Unless you have not stated the dollar amount, and that your price may sound high in a world that is becoming accustomed to "free shipping".

If you do not have a signed change order (perhaps they are not that kind of customer) for the additional charge, then it may be something that they balk at once they see the number.

I would think another talk with them is in order, and you can arrive at some compromise. I don't know how big your shop is, but maybe you personally could drive the truck there, since possibly some of your time is already covered by overhead, and they can furnish someone to help unload, and you can then offer a reduced rate on the delivery cost. Hopefully they will remember this the next project you do with them, if there is one.

What would the cost differential be if you had a moving company deliver the project? Perhaps have them hire a moving company to deliver the project, and maybe your costs will look reasonable by contrast.

Its really no ones fault that it is working out htis way, but someone has to pay for the extra delivery costs. Is it going to be the client, the contractor, or you? Perhaps a three way split will be the order of the day. A win-win-win, of sorts, given the current climate.

Good luck.
TonyF

10/11/20       #4: Covid, Extra deliveries, good custo ...
Mark B Member

Thanks Tony,
All customers we have thankfully are good customers, we've been fortunate. Like I mentioned, just a bit of a sanity check as we are all in a bit of a poop storm on various levels of the last eight months. No doubt we can dig our heels in an say here is the number love it or leave it. Just trying to be as reasonable as reasonable.

Sub'ing out to a transport would dwarf our highest per-trip numbers.

10/12/20       #5: Covid, Extra deliveries, good custo ...
Alan F.

Most of our jobs that were interrupted by Covid-19 asked for Covid-19 costs.

What about loading a rented trailer and load first to last in the trailer and then unload as they need it. Then you are paying less for someone else to haul.

10/20/20       #6: Covid, Extra deliveries, good custo ...
Charlie W Member

If they provided a schedule at the beginning of the project and they have extended that due to constraints then you have recourse. Since the job was not phased to begin with you could definitely come back and hit them with a CO.
But as you know at the end of the day your relationship with this customer is the most important thing. If that relationship is strong then they should be reasonable with you and cover the extra charge. They should be able to pass this on to their customer.

10/24/20       #7: Covid, Extra deliveries, good custo ...
Mark B Member

Thanks,
We are going to have to bill them regardless. If they are willing and able to deal with on-site storage or exterior non climate controlled storage that would be on them. As I mentioned, I know I can fall back on the initial staging of the project and just dump the material on them. Not our style. We, as Im sure everyone, try to work with our customers whenever possible.

Also as I mentioned, I am confident in their honesty that they are in the same predicament as the rest of us and simply have no option to bill additional due to the virus.

Im willing to share some of the burden with good customers. We all have to get through it.

At present we plan to bill these additional short shipments at a bit of a reduced rate that pretty much covers the overhead but not the loss in time. I guess it seems like the best solution at the moment.


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