Advice on charging customers

Discussion in 'Growing and Managing a Business' started by poulsen, Apr 18, 2010.

  1. poulsen

    poulsen
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    I have a monthly electricity bill (capped amount)that I must oncharge to 5 customers of our business. I currently spend a lot of time calculating how much each customer has used and oncharging them accordingly.

    I am however considering charging the customers a fixed amount on a monthly basis, such that the amount covers the entire capped amount for these 5 customers. My concerns with doing this are that our business loses a customer and must therefore pay at least the minimum amount of the electricity bill that that business would have been paying.

    My problems is that I cannot afford to have an employee complete the analysis for this every month and he billing from the electricity company is not very helpful and also the above problem in that we lose a customer who we oncharge.

    What am I best to do in your opinion? Any ideas?
     
  2. GekiDan

    GekiDan
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    Welcome to Business Advice Forum.
    It's kinda unfair if you will divide that capped amount equally to five members. There are times that one uses a little electricity compared to others. Why not use a sub-meter? It's a device you can put on the wires before they reach the place of your client. This way, you can calculate how much electricity one consumes monthly.

    You can find more information here: http://en.wikipedia.org/wiki/Utility_submeter

    Hope that helps.
     
  3. seanstevens

    seanstevens
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    With the amount that can be done via databases and excel sheets nowadays there must be a way of speeding up the time taken to work out who has to pay what. You might find it better for business of talking to the electricity company to get clearer bills.

    If you decide to split up the costs then a better idea rather than splitting equally is using the average over the past 12 months for each customer and charge accordingly.
     
  4. Fergal

    Fergal
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    Welcome to Business Advice Forum poulsen, thanks for joining and asking your business customers. Are you renting work space to your customers?

    On what basis are you proportioning the bills at the moment, in other words how do you calculate how much each individual customer owes?
     

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