The reason I ask is because I said I would take a job, but would need mileage because it is over 50 miles round trip. When I asked for the standard IRS personally-owned vehicle mileage of 57.5 cents per mile I never received a response, so I’m guessing the scheduler thought that wasn’t reasonable. What do you think is a reasonable request?

It's not about what the MSC thinks is reasonable. It's about what YOU think is reasonable. It is possible that you and the MSC won't be able to make a deal. That's okay: When you contract with them for an assignment, both parties should be happy with the deal. It's very possible that the MSC is hoping to get somebody nearby to do the shop - somebody who can do it for much less than you .... Also consider: 50 miles in rural North Dakota is a very different thing than 50 miles through downtown Los Angeles. It's hard to put a generic qualifier on mileage.

All that said, when I am looking at a shop that is a little bit of a drive, I try to see what else I can find either nearby or along the way. This can offset concerns about distance and time driving. If you can get half what you would need for a bonus to make the trip from each of four MSC's, you are going to have a pretty good day.

I find it very interesting that IRS allows businesses to deduct 57.5 cents per mile while if I drive for medical care I can deduct 17 cents per mile and if I am helping out in my community as a volunteer, only 14 cents per mile. Although this forum stays away from politics, I do find it interesting what the government thinks of volunteer efforts.

When I am looking at distant shops I refer to money for 'mileage' more as money for my extra time in getting there. I already can deduct the very generous IRS estimation of what it thinks it costs a business to operate a vehicle. So lets look at a 50 mile round trip . . .

In my area, if I go North or South I generally can take the interstate and drive time to and from the interstate plus interstate miles will be total drive time of an hour and a quarter to an hour and a half. I would likely ask for $15-$25 extra. If I go East I don't have interstates but do have good roads with low to moderate congestion. Total drive time would likely be the same so extra pay would be the same. If I go West, because of traffic congestion, my trip could easily require 2 to 3 hours, depending on time of day required, so my required extra pay would be $25-$40 plus any tolls I might incur. Obviously to my West is the bulk of my town and I rarely get bonus shops going West because there are many shoppers who live in those areas who will happily do the work with no bonuses.

Now lets look at how you handle 'mileage'. You cannot 'double dip', so if a company 'reimburses' you 35 cents per mile, you can't claim the payment as a tax free reimbursement AND take your 57.5 cents per mile IRS deduction. I usually treat the 'reimbursement' for mileage as a taxable bonus so that I can take the IRS mileage, and I usually try to negotiate the extra payment as a bonus in the first place.

Most MSC's are advised by their lawyers and/or MSPA to never pay mileage, due to tax/employment code issues. That may not be valid (the issues) but a ton of them believe that advice and shudder when you want to specify a payment as "per mile."

I see many of the shops in that area because the MSCs show me at 13 miles away when it’s actually 26 miles. I live on a peninsula and must go south to get to the bridge that takes me over the river, and then northeast to get to the town. I also have to pay a $2 toll at the bridge. I had a scheduler once argue with me about the mileage, and I told her if I had a boat or plane to go through or over the River it might be only 13 miles, but I have to drive and therefore need a bridge!

@MFJohnston wrote:

It's not about what the MSC thinks is reasonable. It's about what YOU think is reasonable. It is possible that you and the MSC won't be able to make a deal. That's okay: When you contract with them for an assignment, both parties should be happy with the deal. It's very possible that the MSC is hoping to get somebody nearby to do the shop - somebody who can do it for much less than you .... Also consider: 50 miles in rural North Dakota is a very different thing than 50 miles through downtown Los Angeles. It's hard to put a generic qualifier on mileage.

All that said, when I am looking at a shop that is a little bit of a drive, I try to see what else I can find either nearby or along the way. This can offset concerns about distance and time driving. If you can get half what you would need for a bonus to make the trip from each of four MSC's, you are going to have a pretty good day.

Would you suggest asking for an increase in shop pay because it is so far, but not mentioning specific mileage and the costs associated with it?

@walesmaven wrote:

Most MSC's are advised by their lawyers and/or MSPA to never pay mileage, due to tax/employment code issues. That may not be valid (the issues) but a ton of them believe that advice and shudder when you want to specify a payment as "per mile."

To answer the question as posited:

As little as they can. The absolute minimum it takes to get the job filled.

@MFJohnston wrote:

It's not about what the MSC thinks is reasonable. It's about what YOU think is reasonable. It is possible that you and the MSC won't be able to make a deal. That's okay: When you contract with them for an assignment, both parties should be happy with the deal. It's very possible that the MSC is hoping to get somebody nearby to do the shop - somebody who can do it for much less than you .... Also consider: 50 miles in rural North Dakota is a very different thing than 50 miles through downtown Los Angeles. It's hard to put a generic qualifier on mileage.

All that said, when I am looking at a shop that is a little bit of a drive, I try to see what else I can find either nearby or along the way. This can offset concerns about distance and time driving. If you can get half what you would need for a bonus to make the trip from each of four MSC's, you are going to have a pretty good day.

Agree.

What the MSCs think is reasonable isn't a good measuring stick. Their goal is to minimize their expense to complete a shop. You have to make sure you are in the black and make a fair profit. Ask for what you need. If they decline that, so be it.

By all means tell them why you need what you need. They may have no idea how far you would travel to do the shop. They just see you're in the same / nearby state and ask their question so telling them it is a long drive is good. But don't expect them to be moved by statements about IRS mileage rates.

I just tell them I want $XXX because of the significant distance which I estimate at YYY round trip miles and zzz hours. This way I've made sure to mention that my time has value, too. I don't invoke IRS mileage rates and the like.

Edited 1 time(s). Last edit at 02/14/2020 06:13PM by JustForFun.

@Ercokat wrote:

Would you suggest asking for an increase in shop pay because it is so far, but not mentioning specific mileage and the costs associated with it?

@walesmaven wrote:

Most MSC's are advised by their lawyers and/or MSPA to never pay mileage, due to tax/employment code issues. That may not be valid (the issues) but a ton of them believe that advice and shudder when you want to specify a payment as "per mile."

Yes, this. Sort of.

They know the "costs associated with it". Despite this, they hope to get it done for less. That's their job. Your job is to make sure you come out OK on it.

I reject the notion that asking for a fair rate is asking for an "increase" to the shop fee. I'm not asking for a special favor to get what I need. Until we come to an agreement, the shop fee hasn't been set. They are offering a rate which I may accept or reject. They have published their starting point, now i respond with mine.

Your rate has to be the default rate that is in your mind, not theirs. If you must think of it in terms of increase and decrease, think of their offer as a request to decrease from YOUR rate. Your rate has to be the one that most relevant to you, not their rate. Does that make sense?

Edited 1 time(s). Last edit at 02/14/2020 06:35PM by JustForFun.

Ercokat,
A scheduler once told me that it was only a one hour drive (60 miles) from Milwaukee, WI to Muskegon MI. She could see the direct route on her map. I had to explain that the dotted line that she saw was the car ferry that crosses Lake Michigan between those 2 cities; sailing duration, about 5 hours, in good weather.

More recently, I now have a "moving mileage" tracker on my vehicle. My 5 month study of the actual pace at which I can drive (how long it take, not MPH) in this area is 12 miles. So a round trip of 24 miles takes 2 hours of driving time. Since only 2 useful bridge cross the Potomac, if I have to cross either enroute, add more delays. Believe it or not, one of those bridges is a drawbridge, and river traffic has priority over vehicle traffic on that Interstate highway.

So, I tell schedulers that I cannot make certain distance drives for less than $X shop fee. Somewhat less if they can give me 2-4 shops in a cluster on the same day. If they don'y "get it" they don't get me.

@walesmaven wrote:

Ercokat,
A scheduler once told me that it was only a one hour drive (60 miles) from Milwaukee, WI to Muskegon MI. She could see the direct route on her map. I had to explain that the dotted line that she saw was the car ferry that crosses Lake Michigan between those 2 cities; sailing duration, about 5 hours, in good weather. .

LOL That dotted line also costs about $400 round trip with a car.

Same here with the distance thing. I live at the tippy bottom of NJ and get offered shops in DE all the time. As the crow flies, it's about 20 miles. Since I'm not a crow, I gotta take the ferry which is a 75 minute ride.