Why "quick" jobs lose money
A customer asks you to swap one outlet. It's 15 minutes of work, so $75 feels fair. But that call also took 40 minutes of driving, 15 minutes of booking and invoicing, and fuel for the truck. Counted properly, that $75 job paid you about $52 an hour, well under your rate.
A minimum charge fixes that. It's the smallest bill you'll write, and it makes sure every call pays for the time it really takes.
How to use the calculator
- Enter your hourly rate. Use your full billing rate, not your wage. Add what you charge now for a small job to see what it really pays.
- Enter your time per call. Round-trip drive time, the work you'll include in the minimum, and the office time every call takes.
- Enter your trip costs. Your typical round-trip distance and what the truck costs you per mile or km, plus any shop supplies used on every call.
You'll get two numbers: your minimum charge, and your service call fee.
The minimum charge formula
Minimum charge = (drive + on-site + office minutes) ÷ 60 × hourly rate + truck cost + shop supplies
Leave out the on-site minutes and you have your service call fee: what it costs you to show up before any work starts.
Worked example: a 30-minute call
- Hourly rate: $125
- Time: 40 min drive + 30 min on site + 15 min office = 85 minutes, or $177.08
- Truck: 20 miles × $0.70 = $14
- Total: $177.08 + $14 = $191.08, rounded up to a $195 minimum
- Service call fee without the on-site time: $128.58, rounded up to $130
If this electrician charges $99 for small jobs, they're really making $60 an hour once the drive, the office time and the truck are paid for.
Service call fee vs. minimum charge
A service call fee (or trip charge) pays for getting there. A minimum charge pays for getting there plus a short block of work. Most shops use one or the other:
- Minimum charge: easiest for customers. "Any job is at least $195, and that includes the first 30 minutes."
- Service call fee + flat rate: charge the trip fee to show up and diagnose, then quote the fix at a flat rate. Works well for troubleshooting. Use the flat rate calculator to price the fix.
How to make small jobs worth the trip
The minimum charge protects you. Filling the visit is where you make money. Before you leave, walk the customer through anything else on their list: a dead outlet in the garage, a fan they want installed, smoke detectors past their date. Three small jobs on one trip pay far better than three trips.
