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Old 02-01-2012, 08:49 PM
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platypus20 platypus20 is offline
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Default Charging My Boss For Tool Rentals

The company has a new accountant (bean counter, money troll, expense geek, etc) and he is questioning my expense practices. In my job, its expected that I will supply simple hand tools, necessary for me to do the job, but I charge the company when I drag out a welder, plasma cutter, pipe threaded, rigging materials, etc, etc. Now the cost is $25 per usage, there have been days they have paid me and extra $100, because of what I needed to do the work. The owner has grumbled a little, but realizes that he would have to buy or rent this equipment, if I didn't provide it for him. No one else in the company, or the company itself has any of this equipment.

The company has always paid for grinding and cutting wheels, welding rod, drill bits, hardware, plasma consumables and such (chargeable to the customer), but the accountant says I'm taking advantage of the owner, with my tool rentals. I say that if they went to the job, then decided he needed some equipment, with the actual equipment cost or rental, the time loss to go get it and all of the unforeseen occurrences, I say I'm actually saving him money. Now the owner says he wants to sit down and talk about this, I'm thinking it times to raise my rates.
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Old 02-01-2012, 09:59 PM
ephotrod ephotrod is offline
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Location: El Paso
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I agree that he should pay because as a tool is used it looses value and you will at one point need to replace the tool. If they don't like it have them rent or better yet purchase the tooling to do the job.

I've never seen a welder who takes his own rig to the pipeline only get paid welding hours and not the rig hours too. They will be hard pressed to find a person with your talent and willing to supply the tools at no cost. Press them for more.
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Old 02-01-2012, 10:16 PM
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CEC CEC is offline
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Let them sweat the rental and logistics of supplying the required equipment.
Then when they want to go back to your previously agreement. Raise your rates to be closer in line with the rental rates.
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Old 02-01-2012, 10:28 PM
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Jim-TX Jim-TX is offline
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When you went to work for the company was there any discussion about needing "special" tools and how they would be paid for? I don't disagree that if you furnish special tools that are not part of your ordinary day's job then you should be compensated for them. It's kinda like if you drive a Corolla to work, but you own a Dodge Cummings pickup and they ask you to drag a 15k pound trailer with your Dodge but don't want to pay you anything extra. If you are furnishing personal tools that are not ordinarily used in your job then you should be paid for providing them.
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Old 02-01-2012, 11:00 PM
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RancherBill RancherBill is offline
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$25 seems really fair. If you went to XX rentals, I am sure sure it would be above that plus you would intercourse around for an hour figuring out the intracies of their machine, on their nickel.
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Old 02-01-2012, 11:06 PM
peterb peterb is offline
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l have different hourly rates depending on what tools i am using and dont get any complaints, but my ute is always over full
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Old 02-01-2012, 11:23 PM
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Walker Walker is offline
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It is going to cost a minimum of $50 just for the time involved in going to pick up the rental equipment. Let them rent it a few times and then the owner can thank the accountant for the quadrupled expense.
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Old 02-02-2012, 12:22 AM
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Scotts Scotts is offline
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Just ask what they think about what is going on and proceed from there.

From what I read you have not talked to the owner about this yet. Let the new bean counter state His concerns, ( sounds like He already has anyway) And go from there. You know what you have for equipment and such and be ready. For example, You have welders and other specialized equipment and such. Hunt around and compare apples to apples and provide a price sheet and be subjective with what you have. You have the skills to make them, as a company successful or you would not be doing what you do for them.

If they push it a bit, put what you have on your van for your disposal and give them a list of what you think you need for the project before you leave the house. Let them arrange to have it there when you get there and go from there or at least present it to them as an option.

If this person is new with the company they may think they have something to prove, If they are reasonable you will be able to work with them, if your boss is He won't put up with them for long and a few chilli dogs will get you through the pains.

For an example you do some projects in Vermont. How far are the rental places from your projects? Bean counters love charts and graphs. Google makes this easy. Especially if you are not charging delivery.

There are administrative costs along with logistics as well. Hell, as far as that goes you could have all the tools delivered and show up in a corolla and charge them for the van and tools without the overhead.

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Old 02-02-2012, 01:05 AM
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rickairmedic rickairmedic is offline
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Jack I think I would walk into the owner and smile and ask him " what he thinks about all of this " . Personally one of the reasons I opened my own shop was due to the fact I dont deal with penny anny BS well at all . I also know you dont either .

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Old 02-02-2012, 01:27 AM
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Harvuskong Harvuskong is offline
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Originally Posted by rickairmedic View Post
Jack I think I would walk into the owner and smile and ask him " what he thinks about all of this " . Personally one of the reasons I opened my own shop was due to the fact I dont deal with penny anny BS well at all . I also know you dont either .

Well, the only commet that I have to add is that without Jack, there is no company, assuming that he is the only one that has the skills and etc to do the work.

They will lose a lot more than tool rental costs if he hires out to another company.
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