A crew drives forty minutes each way for a small trim job. The truck burns fuel the whole time. The chipper trails behind. The crew is paid for every minute. The quote you gave was the same price you would give for a job five minutes from the yard.
That job probably made little or no money, and nobody noticed. Fleet cost is a quiet leak. It hides in the fuel card and the repair bills, away from the quote.
What “fleet cost” really includes
Fuel is the one everyone sees. But it is just one line. Here is the full list for each vehicle and trailer:
- Fuel (and oil, and fluids)
- Tires
- Repairs and regular service
- Insurance
- Truck or trailer payment, or the money you set aside to replace it
- Registration and inspection fees
- Cleaning and small parts
- Time the vehicle sits broken
Add up one year of these for each vehicle. Then divide by the miles driven and the hours used. You now have two useful numbers: cost per mile and cost per hour.
A simple example (made-up numbers)
These numbers are an example only. They are not real averages. Use your own.
| Item for one dump truck, one year | Example amount |
|---|---|
| Fuel | $9,600 |
| Tires | $2,200 |
| Repairs and service | $5,400 |
| Insurance | $4,000 |
| Payment or replacement set-aside | $12,000 |
| Registration and fees | $800 |
| Total for the year | $34,000 |
| Miles driven | 20,000 |
| Hours used on jobs | 1,000 |
| Cost per mile | $1.70 |
| Cost per hour | $34 |
In this example, a 30 mile round trip costs the company about $51 in truck cost alone, before wages. And an hour of truck time costs $34 whether it is moving or parked at the site.
Run your own sums with the fuel cost calculator. It takes your miles, your fuel use and your fuel price and shows the cost of one trip.
Add drive time
Your crew is paid on the road, so drive time belongs in the price. Think of it this way:
Travel cost = (round trip miles x cost per mile) + (round trip hours x crew cost per hour)
If the crew costs a set amount per hour, as worked out in the crew day rate calculator, a one hour round trip adds that whole amount to the job. The travel cost calculator does this for you and lets you test different distances.
Try it: pick your three farthest recent jobs and run each one through the travel cost calculator. You may find some of them lost money.
Three ways to put it in the price
You do not need to show a fuel line on every quote. You do need to cover it. Pick the way that fits your company.
- Build it into the job price. Work out the travel cost for the job, add it to labor, disposal and margin, and quote one number. This is the most common choice.
- Use distance zones. Draw rings around your yard. Jobs in the first ring have no travel add-on. The second ring adds a small amount. The third adds more. Our service area planner helps you draw them.
- Add a trip line. A clear “travel and fuel” line on the quote, used for far jobs. Be honest and consistent so it never looks like a surprise.
Whichever you pick, check it against your goals for margin using the profit margin calculator.
When fuel prices move
Fuel prices go up and down. Do not change every quote every week. Instead:
- Pick a fuel price you will use in your estimates (your “planning price”)
- Review it each quarter
- If prices move a lot, change your planning price and update your price list
This keeps quotes steady for customers and keeps you from being surprised. Our pricing guide shows where fleet costs fit in the bigger picture.
Cut the cost, not the quality
Once you know your numbers, you can improve them. Ideas that cost little:
- Group jobs by area. One day in one part of town beats zigzagging. Our crew scheduling and the phone post explains how to book around routes.
- Reduce idling. A truck that idles at the site burns fuel for nothing.
- Keep tires and filters in good shape. Poor upkeep costs more at the pump and in repairs.
- Load the truck before you leave. A forgotten tool means a second trip.
- Track repairs per vehicle. If one truck always costs more, it may be time to replace it. The equipment buy vs rent tool can help with that call.
Check your own tax situation with your accountant, since vehicle costs can be treated in different ways. This is a short explanation, not tax advice.
Checklist for pricing fleet costs
- I added up a full year of costs for each truck and trailer
- I know my cost per mile and cost per hour for each
- I include drive time at my crew cost per hour
- I picked a planning fuel price and a date to review it
- My quotes cover travel for far jobs
- I group jobs by area when I can
- I review the numbers every quarter
A quick example of a distance zone price
Here is how zones might work for an example company, Oak & Pine Tree Service. These numbers are made up, so build your own from your cost per mile and cost per hour.
The yard sits in the middle. Zone 1 covers jobs close to the yard, and the travel cost is small enough to fold into the normal price. Zone 2 covers jobs about half an hour out, so the quote adds the extra truck cost and crew drive time for that distance. Zone 3 covers the far edge of the service area, where the add-on is larger and the owner decides whether the job is worth taking at all.
Zones keep pricing fair and easy to explain. A homeowner in zone 3 understands why the quote is higher, and the owner is not working for free on the road.
Make every mile count
A long drive is worth it when the job pays. It hurts when you arrive and the homeowner has changed their mind, or a call went unanswered and you never booked the visit. According to Invoca, about 27% of calls to home-service businesses go unanswered, and under 3% of those callers leave a voicemail. Each missed call is a job you did not get to price. Our Never-Miss-A-Job System replies to a missed call by text in 30 seconds so you can book the estimate and plan your route. To see how many calls you miss today, ask for a free audit.
