For tradespeople, quoting jobs is usually a balancing act between staying competitive and making a fair profit. But data reveals one cost that is often under-accounted for is travel. With nearly nine in ten (89%) tradespeople visiting at least three different client sites each week, costs associated with fuel, mileage, and congestion charges can quickly add up.
A new study by temporary business van insurance experts, Tempcover, draws on survey data to reveal the travel costs most often under accounted for, and estimates the potential impact on tradespeople’s earnings.
Undercharging for Travel Costs Could Cost Tradespeople More Than £7,200 Annually
The findings reveal that more than three-quarters of tradespeople (77%) report undercharging for travel, most commonly by £6–£20 per job (32%).
With an average of nine client sites visited per week and an undercharge of £15.89 per job, the costs can quickly accumulate. Over time, it equates to an estimated £139 per week, £555 per month, or over £7,200 per year in lost earnings, highlighting the impact that travel-related expenses can have on overall annual revenue if not fully accounted for when quoting.
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When you think about travel specifically, do you believe you typically undercharge when quoting jobs? |
Respondents (%) |
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No, I don’t undercharge for travel |
19% |
|
Yes, but usually less than by £5 per job |
24% |
|
Yes, usually between £6-£20 per job |
32% |
|
Yes, usually between £21-£50 per job |
11% |
|
Yes, usually £51+ per job |
4% |
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Yes, I do. But by how much varies too much to be able to say |
6% |
|
Not sure |
4% |
One in Seven Tradespeople Don’t Factor Travel Costs Into Quotes
While the survey showed most tradespeople undercharge for travel, the methods used to account for these costs vary widely. About 40% include travel in their overall quote, 22% adjust their hourly or daily rate depending on distance, and 18% charge a separate call-out or travel fee. Meanwhile, 14% don’t factor travel costs in at all, and 6% were unsure.
Mileage and Fuel Are Top Travel Costs Factored Into Quotes
Not only does the method of charging vary, but the specific travel expenses included in quotes also differ. Mileage (48%) and fuel or EV charging costs (45%) are the most commonly considered. Other expenses factored in include insurance (38%) and vehicle upkeep (36%). Less frequently accounted for are parking (22%), congestion charges, ULEZ fees, or tolls (20%), and road tax (15%), suggesting that these specific travel-related costs are less consistently factored into job quotes.
Claire Wills-McKissick, temporary business van insurance expert at Tempcover, comments on the impact of travel costs on tradespeople’s revenue:
“Our research indicates that travel expenses are often omitted from quotes, which can result in thousands of pounds in unrealised income over time. In a competitive market, there can be pressure to keep quotes low to secure work, but consistently under-accounting for travel costs can have a significant impact on a business’s bottom line.
Our previous research showed that travel time contributed to hidden costs, too. Van drivers lost an average of 98.6 hours a year to road delays in England last year[1]. At an average rate of £44 per hour, this represented approximately £4,336 in lost earnings if the time could not be billed[1]. Factoring travel time and costs into job quotes allows for more accurate cost recovery and helps ensure that the total resources required for the project are reflected in the final price.”