Technicians are paid while they drive and trucks burn fuel between every job. Here is how to measure that cost and build it into your prices.
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Drive time is a hidden cost
For most service businesses, the truck is moving for a big part of the day. Technicians are paid while they drive, the vehicle burns fuel and wears out, and none of it shows up on the invoice. If prices only cover time on the job, drive time quietly eats the margin.
Measure it first
Look at a few weeks of schedules or GPS data and calculate the average drive time per job. Many companies are surprised: 30 to 45 minutes per call is common in spread-out areas. That number is the starting point for every pricing decision.
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Calculate the real cost per mile and per hour
Add fuel, maintenance, tires, insurance and depreciation to get a cost per mile. Then add the technician's loaded labor cost for the time behind the wheel. Together they show what each trip really costs the business.
Ways to price it in
- Built into the rate: raise the hourly or flat-rate price so the average trip is covered.
- Trip charge: a fixed fee for each visit.
- Zones: a base price for the core area and an extra for farther zones.
Service zones keep it fair
Draw your core area where most customers are, then add one or two outer zones with a travel charge. Customers understand that a visit 40 minutes away costs more, especially when it is explained upfront.
Route density beats price increases
The best way to lower drive cost is to do more jobs closer together. Group appointments by area and day, focus marketing on the neighborhoods you already serve and say no to far-off small jobs.
When fuel prices jump
If fuel rises sharply, a temporary fuel surcharge, explained clearly, is more honest than cutting corners. Review it every few months and remove it when prices come down.
Explain it to customers
Put your service area and any travel charge on the website and say it when booking: "You are in our outer zone, so there is a $35 travel charge." Most customers accept it when they hear it before the visit. Surprises on the invoice are what create bad reviews, not the charge itself.
Review it every quarter
Check drive time per job, fuel cost and the share of jobs in outer zones every few months. If the numbers change, adjust zones or prices before the margin disappears.
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
How should a service business charge for travel?
Most companies build average drive time into their rates and add a travel charge for outer zones. Explaining the zone and charge when booking keeps customers from being surprised on the invoice.