How to Charge for Travel Time as a Contractor
Your Truck Time Has Value
You drive 30 minutes to a job, work for 2 hours, drive 30 minutes back. You billed 2 hours. But you spent 3 hours. That unbilled hour costs you $75-150.
3 Ways to Charge for Travel
1. Trip charge / Service call fee Flat fee for showing up: $50-150. Covers your drive time regardless of job duration. "Service call fee of $75 applies to all visits."
2. Minimum job charge Minimum 2-hour charge even for 30-minute jobs. This effectively covers travel time without calling it out.
3. Zone-based pricing Within 15 miles: no extra charge. 15-30 miles: $25 travel fee. 30+ miles: $50 travel fee. Clear, predictable, fair.
How to Present It
Don't hide it. Put it on your quote: "Service area: [your city] and surrounding areas within 30 miles. A $50 travel fee applies for locations beyond 30 miles."
Customers in your zone feel they're getting a deal. Distant customers understand the charge.
The Math
If you drive to 5 jobs/day without travel charges, at an average of 30 minutes each way, that's 5 unbilled hours per day. At $85/hour, you're giving away $425/day or $8,500/month.
Even a modest $75 service call fee × 5 jobs = $375/day recaptured.
Your next step: Add a service call fee or minimum charge to your next quote. Frame it as standard practice — because it is.