3 Ways to Charge for Drive Time
Different methods work for different business models. Choose the approach that fits how you quote jobs. (Pricing bigger install jobs from plans? Our landscape takeoff software comparison covers measuring quantities before you price travel and labor.)
| Method | Best For | Pros | Cons |
|---|---|---|---|
| Per Mile | Rural areas, clear distance-based pricing | Easy to calculate and explain | Doesn't account for traffic time |
| Per Hour (Travel) | Urban areas, heavy traffic markets | Accounts for actual time lost | Requires estimating drive time |
| Built Into Price | Zone-based pricing, repeat customers | Simple quotes, no line item | May undercharge distant jobs |
Worked Example: 25-Mile Job with 2-Person Crew
Here's the complete calculation for a lawn maintenance job 25 miles from your shop:
Example: Travel Cost Calculation
Simplified rate: $1.70 per mile ($85 ÷ 50 miles)
Or per-hour rate: $72.50/hr of travel time
Note: IRS mileage rate is $0.67/mile for 2024 (US). Labor rates vary by region.
Setting Your Travel Policy
Most landscapers use a tiered approach to travel charges:
- Free zone (0-15 miles): No travel charge—this is your core service area
- Standard zone (15-30 miles): Charge per mile or minimum travel fee ($25-50)
- Extended zone (30+ miles): Higher per-mile rate or decline small jobs
Note: Zone distances vary by market density. Urban landscapers might set their free zone at 10 minutes; rural operators might go 20-30 miles before charging.
5 Drive Time Pricing Mistakes
- Only charging for fuel: Fuel is about 25% of travel cost. Crew labor and vehicle wear are much larger expenses.
- One-way calculation: You have to drive back. Always calculate round-trip distance and time.
- Ignoring traffic: A 20-mile drive in rush hour might take 45+ minutes. Use actual drive time, not just distance.
- Hidden in price without adjustment: If you "build it in" but use the same price for near and far customers, you're losing money on distant jobs.
- No minimum for distant small jobs: A $100 lawn cut 30 miles away loses money. Set minimums or decline.