3 Ways to Charge for Drive Time
Different methods work for different business models. Choose the approach that fits how you quote jobs:
| 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.