Indeed, 'gas money' doesn't begin to cover it. I suspect that realization may a major cause of the 'burnout' that you referenced.
Expenses for your new business includes your car expenses. Those start with gas but also include oil changes, tires, blown radiators, insurance, registration etc.. You could add it all up and allocate a percentage of those expenses based on how much you drive the car for business expenses versus personal time. The IRS makes it easy for us by giving us another option - deductible cost per mile. In 2015, I hear it is 57.5 cents per mile.
Other costs include your computer and other devices, paper for your printer, required purchases on the shops and your time. Yes, your time. If you want $10 or $15 per hour for the shop, you need to consider this. Consider the time it takes to check the job boards, apply, study the instructions, do the shop, and enter the shop. It is all part of running your business.
So, turning to that $9 shop 26 miles away -
$.575 x 52 miles = $29.90
Driving time - 1 hour estimate = $10.00
Prep & reporting time - 1 hour estimate = $10.00
Required Purchases - reimbursed ? = $ ??
total cost about $49.90, maybe more.
Route shopping definitely makes better use of the time and mileage cost. If you do the same shop(s) it also lessens the preparation time. Practice will also reduce the time it takes to get and report the shops.
But my bigger point is that that $9 shop costs much more than just one gallon of gas. There may be reasons a shopper throws this out the window. Beginners need experience and to get their foot in the door at certain companies. Any shopper may be traveling 60 miles for personal reasons (see a friend/relative, go to a sporting event, etc.) and adds in a gas station or convenience store along the way. However, realize the true cost of your business to avoid misconceptions. Also you will be prepared when the schedulers start calling with an offer of a $16 shop 35 miles from you. You can tell them I need $x for that shop to make it work for my business. Unless you already have a route planned that goes that way.
But you don't have to tell the scheduler about the preplanned route, do you?
Happily shopping Rhode Island and nearby Massachusetts and Connecticut
Edited 1 time(s). Last edit at 05/10/2015 03:37PM by vlade5394.