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Thread: What ways are best to charge for travel fees?

  1. #1
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    Default What ways are best to charge for travel fees?

    I've been doing a lot of research recently on how small businesses charge for travel time. I've seen hourly rates charged for drive time, price per mile, and some strange combinations. My business is service oriented, so we are always driving to our clients property or build site. We are based in the DFW area in Texas. It's not uncommon for projects to be around 50 miles away from our main office, but I'm struggling to find a simple solution to charge for travel time, especially when we deal with a lot of traffic that slows us down considerably at peak traffic hours. I'll list the solutions I've found researched below, if y'all have any other solutions or advise I would really appreciate it.



    • Hourly travel rate
    • charge per the mile
    • charge per mile outside determined radius around office
    • low hourly rate + $ per mile



    I'd really appreciate any help I can get on this. I don't want to waste our companies time driving while not making money. But I also don't want our clients to think we are upcharging to just sit in traffic. If you could explain what and why you chose a particular method, that would be extremely helpful.

    Thank you

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    Depends, on my normal route it's $10/stop. For on site service work it's my road rate for all time out of shop based upon a fixed two-way travel time determined using Google Maps - minimum charge 3 hours.
    Brad Miedema
    Fulcrum Saw & Tool

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    So when it's service work, you're saying you charge for a minimum of 3 hours, which includes the time it takes to drive there and back. Anything longer than 3 hours and I imagine your road rate applies afterwards?

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    Yep, although the time back to the shop is a fixed time in case I decide to take the scenic route home. You are also correct in that the full road rate applies after 3 hours. Also, if I get called to come in at the end of a work day, a decision maker on the maintenance staff must remain until I am done; otherwise I am packing up and going home with the staff and will come back the next day at an additional 3 hour minimum charge.
    Brad Miedema
    Fulcrum Saw & Tool

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    I really appreciate the advice Fulcrum. It's given me some better ideas about how to set up our travel fees. Thank you so much!

  6. #6

    Default Travel trips calculated like flight tickets and airtravels

    Best way is to make a trip deal in advance.Because rates and conditions may change.Even when you buy flight tickets first you go online search for flight tickets and/or hotel booking sites like kayak.com,visaedu.org,priceline.com you compare all prices first than you can try to get a good flight deal by considering connected flights,layover times and so.
    Same thing applies for daily travels need to just compare rates first and consider all wait times.
    Last edited by Suslova; 02-07-2019 at 01:00 PM.

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