What About Travel Expenses? - EP56
All Things MSPApril 09, 2024
56
00:26:4661.27 MB

What About Travel Expenses? - EP56

In this episode, Justin plucks a topic directly out of the Facebook group to discuss, travel expenses.  This is a topic that comes up frequently as you begin to gain clients that are not exclusively within your normal radius geographically.  We discuss quoting and setting expectations as two key elements of making sure that you and your clients are on the same page.  There are also a few announcements you won't want to miss.

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[00:00:34] Again with my Timu Elgato light dude, light worked fine. It was like Wednesday, eight o'clock

[00:00:40] at night I was on, I was the command control power podcast, which is a Apple based podcast.

[00:00:47] They've been around those guys have been around forever. Right.

[00:00:49] They finally have moved to StreamYard. I don't know when they switched to StreamYard

[00:00:53] They were doing a live broadcast while they were recording, which by the way, if you guys

[00:00:57] want us to do this live on YouTube while we're recording, you can ask. We're not going to do

[00:01:02] it, but you can ask. Anyway, totally fine all night long. Right. The next morning I came in

[00:01:11] had to get on a zoom went to turn on the light dead, dead light doesn't work. And I had to reset

[00:01:18] it. And like, it's taken me like 17 tries to reset the Elgato key light, air light honestly Elgato,

[00:01:26] if you're listening get your ish together in an ear, in an ear, in an ear.

[00:01:42] What's up everybody? Welcome to the all things MSP podcast. My name is Justin Escar with me

[00:01:46] always is my good friend podcast producer extraordinaire, Mr. Eric Anthony. Eric,

[00:01:52] what's happening in your neck of the woods? Well, you know, it's a pretty standard Friday here.

[00:02:01] Kind of just making sure that we have podcast episodes to record, you know, for the next

[00:02:07] as a good podcast producer should as the producer should. Right. We actually do. So

[00:02:13] we actually do have in spite of the fact that you and I are taking some time off for different things.

[00:02:20] And so we've stacked up some in advance. So we're good. We'll have one come out every week.

[00:02:24] We're still we're still okay. But getting into April, we've actually we've got a fairly good

[00:02:32] number stacked up. So we will be getting back to guests very, very soon.

[00:02:41] Well, that's good. We do have some good stuff coming up. I'm really excited for it.

[00:02:47] Not a bad Friday this week has been kind of actually like a little bit crazy like Monday was

[00:02:51] rough. Right. And I talked to our team and I was like Monday was a Monday if you know what

[00:02:55] I mean right? And then like Tuesday was a Monday and Wednesday was a Monday and Thursday

[00:03:00] was a Monday. And today they were recording on Friday. Friday is a Monday and I'm like,

[00:03:04] what is going on? We a couple of things happening in our world. We are making a massive

[00:03:11] aggressive push to get everybody up onto Mac OS 14.4, which is the latest OS. And the reason

[00:03:17] for this is Apple actually reduced this really awesome new tool in MDM called DDM because

[00:03:23] you know, God, the marketing department needs a paycheck. But DDM declarative

[00:03:29] device management, which is this awesome feature where the Mac can actually report back

[00:03:33] to the MDM solution with, Hey, I have an update I need to run as opposed to the

[00:03:38] MDM solution going, I think you need to run this the Mac going, I'm not sure the MDM

[00:03:43] going, I'm telling you and the computer going, don't tell me what to do. You're not my father

[00:03:48] and then the computer and then the MDM solution going, Luke says, I am your father

[00:03:52] and then it cuts your hand off. DDM just goes, the mattress goes, Hey, tell me what

[00:03:56] I got something telling me what to do. And so it gets it done, but it only works in Mac OS 14.

[00:04:01] And so we're making like this super aggressive push to do stuff. So I've been spending my entire

[00:04:05] week emailing everyone of my clients being like, can this computer has been on for a couple of days?

[00:04:10] We got to get an update or this computer hasn't been on for a couple months or like,

[00:04:13] why hasn't this computer been on, which you would think like we'd be more on top of it.

[00:04:16] But this is a great way also as a reason to reach out to clients. So we're getting back

[00:04:21] to people who we haven't heard from in quite some time. And like, let's be honest, it's not that

[00:04:26] we're bad consultants, just that sometimes clients fall off the map for a while. They're busy, they

[00:04:29] have jobs to do, they shouldn't be calling you. That's kind of the point. And so it's like

[00:04:34] really weird for me to write to like the operations person at a client or the administrative

[00:04:39] assistant or whoever it is being like, Hey, long time no talk, you've been paying us,

[00:04:44] we've been doing our job, everyone's happy. Just FYI, do this for me. You know what

[00:04:49] I mean? And it, you know, that's been my week is getting that stuff done as well as I'm still

[00:04:58] watching data move from one Synology to another, which has been going on three weeks now, which

[00:05:02] is unbelievable, which my client and everyone who's listening is going to relate to the story.

[00:05:07] We built out this entire Synology solution. We replaced their old broken ones with a new

[00:05:13] one with an expansion unit. We went from like four Synology so like one unit,

[00:05:17] it's in high availability. So it's really two units, whatever. We've been working on this project for a

[00:05:23] couple months now. We've been actively on it for six plus weeks. There was planning involved,

[00:05:29] yesterday they come to us and they go, Hey, we found a couple hard drives lying around.

[00:05:34] Can we get is there room on the server for this data? And I said, sure, how much data

[00:05:38] we're talking about? And the person takes out their notebook and goes,

[00:05:43] 20, 2008 to 2018 7.4 terabytes over six drives. And I said, okay, cool, 7.4 terabytes across

[00:05:51] six drives or on each of those drives. They go, no, no, no, across the six drives. I said,

[00:05:55] sure, we have plenty of space for 7.4 terabytes. Okay. 2019 to 2020, 108 terabytes. Are you

[00:06:05] kidding me right now? What do you mean you just found 108 terabytes? Where has this been? Not to

[00:06:12] mention this is video footage and only gets into 2020. What about the next four years? Oh, they're

[00:06:17] running about 25 to 30 terabytes per year of raw video footage. And they have nowhere to put it.

[00:06:24] And I'm like, why has this not been brought up to us beforehand? What are you doing? And if

[00:06:29] you're in the car and you're listening to this and laughing right now, please tell me

[00:06:32] you feel my pain. So now we have to build them a whole other box. And so we decided to go with

[00:06:41] the beast, which if you don't know Synology's, Synology's biggest model is a 16 Bay, it's a RS

[00:06:47] 4021 XS plus. And if you know, Synology numbers, you know that those last two digits of the year

[00:06:53] the device came out. So 4021 came out in 2021. And with that fully loaded and the expansion

[00:07:02] bay fully loaded, it'll get them about 400 terabytes of space for this for basically the same price.

[00:07:08] And there's no room for expansion. There's nothing else beyond that for basically the same price.

[00:07:12] We're going to buy them the HD 6500, which is the 30 Bay unit that is built for if you want to

[00:07:19] run your own private cloud out of your office because in total, if we buy them 4812 terabyte

[00:07:30] drives as opposed to 2818 terabyte drives, it's the same price and they still have 12 drives to

[00:07:37] expand with and they can slap on five expansion boxes in case they just magically find more stuff

[00:07:43] because 12 terabyte drives are $180 and 18 terabyte drives are $650. So like all of this came

[00:07:51] about yesterday when they were like, by the way, we found this drive in a drawer. Oh wait,

[00:07:56] and here's even the best part. We figured out the total they have right now is about 215 terabytes

[00:08:02] of data, right? Fine. The maximum storage pool on a Synology no matter what unit you buy

[00:08:11] is 200 terabytes. So we actually have to build it in such a way this way we don't end up with

[00:08:18] 200 terabytes and a 15 terabyte. Right. So it makes more like logistical sense within the

[00:08:25] volumes. See, and you guys think I only just like take care of Max. No man, I'm building out hard

[00:08:31] core synologies. Yeah, ridiculous, ridiculous. That's my story. So you're looking at almost half a petabyte.

[00:08:41] If we build out if we build out the 4812 on a RAID 5 will be something like 450

[00:08:48] terabytes of raw storage for them. Yeah.

[00:08:50] Yeah. Ridiculous, right? It is. But I also understand, you know, having done a little bit of video

[00:08:57] production myself, I understand why you keep that raw footage and just the

[00:09:06] massiveness of raw footage when it comes out of camera. Because when you shoot, especially if

[00:09:13] you're shooting it 4k or higher with 10 bit color, yeah, those things get huge like really fast,

[00:09:21] like four gigs a minute. I mean, I'm not going to deny that it's going to add up fast, right? Like

[00:09:27] there's probably plenty of reasons why they have all of this data and I'm not going to. And so I

[00:09:33] even said to them, I was like, what about backing this up because I don't know how we're going

[00:09:36] to back this up. And they were like, we don't need to back it up because we have the drives.

[00:09:43] These drives that they're working from is the primary. So this video vault, this video ingest

[00:09:48] vault is what I'm calling it, is actually going to be the backup for these drives that

[00:09:54] they're just passing around. And I was like, okay. Here's something you can get in writing

[00:10:02] and have them sign. Yeah, I'm quoting you too. And you're going to say only why you don't want the

[00:10:07] second one. So I don't know that so that's been my week with my Synology project.

[00:10:20] And I think now is a great opportunity to talk about two other sponsors of all things MSP.

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[00:11:11] core view. So this is this is what we're going to call the filler episode. This is one of those

[00:11:16] episodes where like we didn't really come to the table with a topic and we're just going to

[00:11:20] talk because we need to have an episode just we can stay on calendar. But there's a couple of things

[00:11:25] that I do want to make sure that we do talk about that it's very self-serving and you know this

[00:11:33] being our 15 member episode, you know, thank you for listening. Thank you. Thank you for

[00:11:39] being here. Thank you for being part of the family. Thank you to all that are in the

[00:11:43] All Things MSP Facebook group. I mean we're I in a past episode I think we said we're at

[00:11:48] 10,000 members but if I'm looking at the website right now it's 5.3 which by the way

[00:11:51] somehow or other don't ask me how this happened. If I go to type in Facebook into my URL in Chrome

[00:11:57] it just auto loads the All Things MSP group. No it doesn't even bring me to my home page.

[00:12:03] My home page is the All Things MSP group. Yeah way to go. So thank you to everyone that's in

[00:12:08] there. Thank you obviously to all of our sponsors that are that are sponsoring core

[00:12:13] of U superhouse movebot contact goes into an easy D mark. I'm sure there are others

[00:12:18] but I'm just reading the I'm just reading the graphic. We would love to we would love to like

[00:12:24] hear more from you if you're in the group. Tell us what you want to hear what you want us

[00:12:29] to talk about. Tell us if you want to be on the show because we want you to be we want

[00:12:34] this to be more about you guys unless about me complaining about my Synology clients. Well

[00:12:41] and to be fair if they want to tell us more about what kind of content they want what kind of things

[00:12:47] concern them conveniently we have a survey for that. And it's still open actually you know

[00:12:56] and I didn't get to explain this on the live stream the other night because I ran out of time

[00:13:01] but I'm leaving the survey up pretty much permanently because what I decided was

[00:13:08] I think this is a very good entry point for people who join the group when they get that welcome

[00:13:14] message that they get a link to the survey so they can fill it out and tell us why they join the

[00:13:18] group what do they want you know for joining the group. And you know there was a lot of

[00:13:24] good information that came out of the survey so if if you didn't fill it out please do so

[00:13:30] atmsp.link forward slash survey. And then also big announcement we've talked about this

[00:13:37] before but we do have a patreon now patreon.com slash all things msp and I'm sure Eric wasn't waiting

[00:13:43] was waiting for me to announce this or was hoping that I wasn't going to but I'm gonna do it anyway.

[00:13:49] We're building out some more in it right now we have two plans you can just be a friend of the

[00:13:53] group and get your name listed in our credits in the live stream and then our more expensive

[00:13:58] one we're gonna start doing some Q&A so this way you have like private one-on-one time like an

[00:14:03] open door kind of thing to talk to either Eric or myself about your business about what you

[00:14:06] want to do things like that as well as we're gonna start producing some exclusive content

[00:14:15] where it's sound like it's only fans. Well I was gonna say where Eric's just gonna keep saying

[00:14:19] Microsoft 365 by the way I've been telling that story for a week now it is a great story so

[00:14:27] check out our patreon and then where's our what's the threadless.com forward slash all

[00:14:34] things msp I think threadless.com slash all things msp nope maybe it's all things add msp

[00:14:43] we'll find it and we'll just it shows you where we're at with things

[00:14:47] all things msp.threadless.com now this is we're gonna make real good stuff anyway we do have a t-shirt

[00:14:52] store you can support us there we'll have a link to that or was it or a ball oh you can buy

[00:14:59] the puzzle or we'll figure out the link we'll post it somewhere um but yeah I mean do join all

[00:15:04] this stuff so we can talk about things I'm just gonna go real quick there's been some really good

[00:15:09] chatter in the all things msp facebook group other than you welcoming everybody and me just saying

[00:15:14] welcome welcome welcome to all things msp which is totally stolen from John Oliver.

[00:15:21] I like that people are not only asking questions but they are providing content to help everyone

[00:15:33] in the group right this is a really good group of people where it's not

[00:15:39] it's not a lot of keyboard warriors it's not a lot of people fighting it's people who are wanting to

[00:15:44] help and wanting to provide content there is one that picked that I did pick up on it it's from

[00:15:49] from earlier in this week Nate wrote I have a new client that will require me to fly to a few

[00:15:56] locations how do you calculate the travel costs and there have been eight replies so I

[00:16:01] and I'd read them I skim them but I do want to talk about it a little bit because I thought it was

[00:16:04] a really good question for anyone who didn't already see it and travel to clients is is a tough thing

[00:16:12] and I'm going to start with something we used to talk about almost every episode back in the

[00:16:17] beginning the beginning of the atm sp podcast time which is it should be in your contract

[00:16:23] even if you're not going to travel it should be in your contract because what's

[00:16:28] going to happen is someone's going to ask you for your travel it's in your contract and then

[00:16:32] you don't have to worry about it because it's in your country see where I'm going with this folks

[00:16:37] yeah I and I totally 100% agree right yeah but I think the question most often comes of

[00:16:46] how do you calculate this I think that's what sure a lot of people struggle with

[00:16:53] and there are a lot of great answers in this I can tell you what we did please

[00:17:00] economy flight plus hotel plus $50 per diem for food

[00:17:09] plus day right so like one is your travel costs and one is your work rate so like your

[00:17:15] travel was economy and I would always charge economy and then upgrade

[00:17:20] I never charged my clients my upgraded flight unless it's an unless it was like a last minute

[00:17:26] emergency kind of situation if you were like can you can you get to Florida by tomorrow yeah

[00:17:31] it's going to cost you a lot of money I don't care whatever fine but like if it's a plan thing

[00:17:35] economy hotel and to be honest all of you should have a hotel and and airline credit card for

[00:17:47] your business so make sure you're using those and like rack and some points

[00:17:53] I say $50 per diem for food that that part may vary and if you need a car or uber

[00:18:02] you know all of that should be laid out in your contract pretty easily and then you calculate

[00:18:06] on it then then comes your day rate right and if you're going to charge a day rate please

[00:18:12] realize that you need to be there from from nine to four nine to five to quantify that day rate so

[00:18:18] a great example is this client who we're moving this data for we quoted them for five days of my

[00:18:25] guy being on site he was only there for four but what we didn't we didn't think about when we

[00:18:31] quoted it was how much work I was going to be doing in the back end so we just made it a

[00:18:35] four day rate and then a one day justin's time adjusted for and made it the value of the day

[00:18:43] rate so the quotes still match up so they weren't like well kyle wasn't really here for five days we

[00:18:48] only here for four you know but you should separate the two items because I think a lot

[00:18:53] of people try to make it all one big thing and again this is not the time for hiding fees

[00:18:59] this is this is 100 transparency here when you're talking to your clients

[00:19:05] I would also ask your client if they have a preferred hotel that maybe they do work with so

[00:19:11] like my client who's in Miami when I used to go pre-covid I used to go down there once a month

[00:19:16] they had a hotel across the street because they had so many people coming to their office

[00:19:20] they had a better rate at that hotel so I would book the hotel using my credit card and

[00:19:26] then I would charge them for the amount but they knew what it was going to be because I was already

[00:19:29] getting a discounted rate right so like talk to your client about it and make sure that they

[00:19:34] understand and be clear with them if you quote them for four days and you're only there for two

[00:19:38] and you want to get out early that's on you because you're changing the plan

[00:19:45] and so you can cut them back the day rate but then don't you don't get to charge them for

[00:19:49] for the flight change right unless it was pre-established hey I'm coming down I'm scheduling you for four

[00:19:56] but if it takes two and I and I can get done in two please note that there will be changes

[00:20:02] and those will be adjusted for it and your client needs to sign off on that first hand

[00:20:06] but that's kind of the way I would do it clients should be paying 100% of your travel

[00:20:11] unless there's some crazy circumstances involved yeah there's there's a key piece that you you mentioned

[00:20:20] I agree with but you kind of just because you and I probably think we think a lot of like when it

[00:20:28] comes to some things like this and but it may not be obvious to other people and that is

[00:20:34] you quote the client ahead of time like you've already looked up what the flight's going to be

[00:20:40] you've already looked up what the hotel is going to be so that you can give them an accurate

[00:20:46] even if it's still a quote it's still an estimate of what that's going to cost right

[00:20:52] so that it's not a surprise to them and and that I think is a very important piece

[00:21:00] because surprises don't go over well right they never do they never do so I mean I think that's

[00:21:06] a solid question by Nate and I do like the the answers that are coming up and they're pretty

[00:21:13] much I'm fine with what we're saying before anyone even miss it but like don't don't the

[00:21:17] the travel part is not where you're making your money you're not trying to make your money by

[00:21:21] like gouging their airline you're not charging them to fly first on you know Singapore

[00:21:27] airlines comfort unless they're flying you to Japan if they're flying you to Japan from the US that's

[00:21:31] a different story right but like you know use discretion and then you get them on the labor

[00:21:38] side because your day rate doesn't have to equate your hourly times eight it can be whatever you

[00:21:44] want it to be because you could easily say well you know if let's say your hourly is 150 right

[00:21:50] 150 times eight is $1,200 but you're not able to help your other clients during that time so

[00:21:58] they should be paying more than that $150 per hour they should be charged you should probably charge

[00:22:04] them double for your day rate it's that exclusivity right that's a exclusivity yeah

[00:22:11] they can only work on that one client when they're traveling so well you know it's funny

[00:22:15] about that though so that client who I used to go to in Miami the old CFO uh somebody in the office

[00:22:22] not going to say who had told him that I was taking a call with another client while I was down there

[00:22:29] and he did not like the fact that I was talking to other clients while he was paying for my time

[00:22:33] and I said okay no problem and I was like I was like someone just called me it took me 15

[00:22:37] minutes but what I'll do is I'll tack on the 15 minutes at the end of my day to make up for

[00:22:41] and he goes okay great six my day ended at five it's now seven o'clock I'm still in their office so

[00:22:49] I've now gone past 5 15 I've done five now I'm 5 15 to 7 I'm still there working on other things

[00:22:54] and he's still there he comes in he goes what are you doing here I was like well

[00:22:58] so-and-so didn't do x y and z so I'm making up for all of that stuff and he's like oh cool

[00:23:03] cool cool thanks so much and I go but by the way I didn't charge you for the 15 minute call

[00:23:07] because I bumped it on the end but I've been here since past that time so I need to charge you time

[00:23:12] and a half for all the extra time I'm here and he goes you're joking right and I go well how serious

[00:23:18] were you about me not taking a phone call for 15 minutes on my lunch break to other people he goes

[00:23:23] this is why I like you and I was like I'm gonna go now and he's like thanks and he realized that

[00:23:28] like he shouldn't have nagged me on the 15 minute thing because I was gonna bite him back

[00:23:32] on it later but I had a good relationship with this person so it like worked out like you can't

[00:23:37] pull that ish with a lot of people but like no no you got to feel that out for that part of the

[00:23:43] relationship but still gotta love working for cfo's oh yeah I think we'll end it there I know it's

[00:23:50] a short one today but you know I did like this question I wanted to talk about it a little

[00:23:55] bit I wanted to just get some stuff out so a couple just last piece housekeeping so join

[00:23:59] facebook.com.com. group special all things MSP obviously if you're an MSP and you want to learn a little

[00:24:04] bit more about business check out acesconference acesconf.com for details that that conference is

[00:24:11] coming up real fast it's less than 60 days away Eric's gonna be there you're on that side according

[00:24:16] to this Eric's gonna be there at msp is hosting our dinner uh in between the two shows we're

[00:24:21] talking about marketing we're talking about management we have a professional we have an

[00:24:25] Olympian who used to work at the pentagon who also trains with the basketball wives talking

[00:24:30] about performance anxiety we have a world record skydiver coming and talking about courage and

[00:24:38] accountability we have a bunch of it professionals coming in talking about what they did wrong on

[00:24:42] their msp we have a bunch of it professionals coming in talking about uh commanding the room

[00:24:47] all these we have a marketing and a branding person coming we have amazing stuff plus we have a

[00:24:52] boatload of sponsors who are not sponsoring at msp so i'm not going to mention them but they're

[00:24:56] going to be there oh actually super ops will be there so super ops plays on both sides uh super

[00:25:00] ops will be there so a lot of stuff happening acesconf acesconf.com go get your tickets today

[00:25:06] and I think we have a coupon code called at msp which I think gets a 10% so check that out

[00:25:11] follow us on youtube.com slash at all things msp do the survey in our group this way Eric has

[00:25:17] more information about you because hey look Alexa already has it so why can't Eric and that's it for

[00:25:22] us for a very short quick self-serving episode I guess that's a fill up that's it bye

[00:25:35] thanks for listening and don't forget to subscribe to us on your favorite podcast platform

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