How Much To Charge Clients For Travel Time

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How To Charge Clients For Travel Time
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Introduction

• 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.
• Every business owner has a variety of clients and
  one can understand the needs and requirements of
  each one properly, before choosing the most
  appropriate price. Here are some popular methods
  to charge the clients for the travel time.

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On-Site Fee

• One can charge the client a visiting fee for the
  for each of the onsite visits. This fee does not
  mention travel costs or costs of tasks per se. 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.

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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 accurately
calculating travel time charges and convert them
into invoices instantly. The tool is preferred by
small businesses for all kinds of time tracking
and billing.
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Hourly Rate

• A flat hourly rate is a simple way to charge the
  client for an onsite visit. It can be a separate
  rate for travelling to 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.

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Progressive Rate

• A progressive rate for time and distance on 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 taken is longer
  due to an unprecedented like a traffic jam where
  no real value is being added.

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Mile Based Fee

• The mileage 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.

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Create a Higher Rate For On-Site Work

• 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.

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