How to price a service call: trip fee, diagnostic and labor
Service calls are where small shops lose money by underpricing the first hour. Build the price from your real costs.
- Know your fully loaded hourly cost. Wages, taxes, insurance, truck, tools, software and overhead, divided by billable hours.
- Add a trip or diagnostic fee. Cover drive time and the first look, even if the customer declines the repair.
- Choose flat-rate or time-and-materials. Flat-rate gives customers certainty; time-and-materials protects you on unknowns.
- Mark up parts. Parts cost you time to source and carry warranty risk. Use the markup calculator to check margin.
- Set a minimum. A one-hour minimum keeps small jobs from costing you money.
Common questions
What markup should I use on parts?
It depends on your costs and market. The free markup and margin calculator shows what margin a given markup produces.
Should I show the trip fee separately?
Many contractors do, because it explains the cost of showing up.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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