Why mobile businesses charge mileage
A service truck costs money every mile it drives: fuel, tires, maintenance, insurance and depreciation, plus the technician's time behind the wheel. A flat service call fee works for jobs close to home, but long trips can cost far more than the fee covers. A mileage charge scales the price with the distance.
Common structures
- Free zone plus mileage. No mileage inside a set radius, then a per-mile charge beyond it.
- Round trip or one way. Say which. Round-trip mileage counts the drive back.
- Mileage plus travel time. Some shops charge drive time at a labor rate as well as miles. Others include drive time in the mileage rate.
- Zones. Flat fees by zone instead of exact miles, which is simpler to quote.
Setting the rate
Base the rate on the real cost of running the truck, including fuel, maintenance, tires, insurance and replacement, divided by the miles it drives. The IRS publishes standard mileage rates each year for calculating deductible costs of operating a vehicle for business. That rate is a tax figure, not a pricing rule, and a heavy service truck may cost more per mile to run than the standard rate assumes.
Good practice
- Publish the free zone, the per-mile rate and whether it is one way or round trip.
- Quote the travel charge before dispatch, and record the customer's acceptance.
- Show mileage as its own invoice line with the distance.
- Use mapping to measure distance consistently.
Example only
As an illustration, a shop might include travel within its home area and charge per mile beyond it, counted one way. Every number should come from the shop's own costs.
See how much should I charge as a mobile mechanic and how to calculate shop labor rate.
MetaFleet supports dispatch with drive-time ETAs and invoicing. Get a walkthrough.