How Much To Charge Clients For Travel Time

How much to charge for travel time? Travel Time is an important aspect of any small business service and must be taken seriously by the business owner. Understanding the true worth of your services will help you get paid for it more appropriately. There are various methods that can be adopted while charging for the travel time and one can choose the most appropriate one depending on the business requirements.

travel time

Every business owner has a variety of clients and one can understand the needs and requirements of each one properly, before choosing how much to charge them.

Here are some popular methods on how much to charge the clients for the travel time.

Onsite Fees

One can charge the client a visiting fee for each of the onsite visits.  This fee does not mention travel costs or costs of tasks per sec. It just mentions a price that will be charged for each onsite visit. This sort of fee leaves little room for confusion for the client. It gives a clear idea to the client, with respect to the visiting fee. As an alternative, one can use a combination of travel expenses and the cost of service, depending on the situation.

Hourly Rate

How much to charge for travel time? A flat hourly rate is a simple way to charge the client for an onsite visit. It can be a separate rate for traveling to a client site for work. Again, this type of a model is simple for the client to understand. Return travel price can be avoided in this case for making the client feel more comfortable with this model.

Progressive Rate

A progressive rate for time and distance of the travel can be a very useful method as well. Lesser price for shorter distances and lesser time on the site and more price for longer distance and more time on the site is what is most appropriate. The client may not have a problem with this method because the more effort put in, the more will be the price. The only exception where the client may find it uncomfortable is where that time was taken is longer due to an unprecedented traffic jam where no real value is being added.

Learn more:  5 Tips For Your Travel and Expense Policy

Mile Based Fee

The mileage-based rate can be a useful way to charge clients. This can be sufficient to recover the costs of fuel along with the cost of the time spent while travel and the onsite visit. One can create a suitable mile based fee, so one can recover both the costs.

Create a Different Rate for On-Site

Creating a higher rate for onsite can be justified because it includes the cost of travel as well. One charges normal hourly pricing when working offsite. On the other hand, while working onsite, one can keep the hourly rate at 30% higher than the general rate. Some clients may object that the differential pricing is on the higher side. One has to make the client understand that the price is higher because it includes travel costs.

Use The Right Tools

How much to charge for travel time? Choosing the right tools can help you track your time better and make you look professional. Invoicera is a cloud-based time tracking and billing tool that helps you in accurately calculating travel time charges and converting them into invoices instantly.

The tool is preferred by small businesses for all kinds of time tracking and billing.

Whichever method you choose, remember to analyze its rate structure that clients will be open competitively.  Make an informed decision on how you charge travel expenses using any of the methods above. Let’s work with the effective support of online invoicing tool.

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