Are You Charging Enough? Calculate Your True Truck Roll Cost
For construction and field service business owners, the most expensive thing you can do is start an engine.
Whether you’re an HVAC contractor, a plumber, or a general contractor, every time a vehicle leaves your yard, you are spending money. In the industry, we call this a “Truck Roll.” If you aren’t accurately calculating your truck roll cost, you aren’t just guessing at your profitability—you might be paying for the privilege of working for your customers.
What Exactly is a Truck Roll?
A truck roll is the total cost of sending one technician in one vehicle to a job site. This includes the time spent driving, the fuel consumed, the wear and tear on the vehicle, and the administrative overhead required to get them there.
Why Most Business Owners Get the Math Wrong
Most owners look at their P&L and see "Fuel" or "Auto Insurance" as general overhead. To truly understand your margins, you need to view these as Direct Costs.
If you charge a $75 "service fee" to show up, but it costs you $120 just to get the truck into the customer's driveway, you are starting every single job at a $45 deficit.
The Step-by-Step Calculation
To find your true cost, look at your bookkeeping records from the last 12 months and aggregate the following three categories:
1. Vehicle Expenses
This is more than just gas. You must include:
Fuel & Fluids: Monthly average.
Maintenance: Tires, oil changes, and unexpected repairs.
Insurance: The commercial premiums for your fleet.
Lease/Loan Payments: Or, if you own the truck outright, the Depreciation (the loss in value over time).
2. Fully Burdened Labor
Don't just use the technician’s hourly rate. You must use the "Burdened Rate," which includes:
Base hourly pay.
Payroll taxes (FICA, SUTA, FUTA).
Workers' Compensation insurance.
Health benefits or 401k contributions.
The Travel Factor: Calculate the average time spent driving per day. If a tech spends 2 hours a day driving, that is 2 hours of "unapplied labor" that the truck roll must cover.
3. Dispatch & Admin Overhead
Every truck roll requires someone to take the call, schedule the job, and process the invoice. Divide your office staff salaries and software costs (like Jobber or ServiceTitan) by the number of jobs completed to find this per-job cost.
The Formula
Once you have your annual totals, use this simple formula:
(Total Annual Vehicle Costs + Annual Burdened Labor for Travel + Annual Dispatch Overhead) ÷ Total Number of Service Calls = Your Truck Roll Cost
Example:
Annual Vehicle Costs: $20,000
Travel Labor (2 hours/day x $40/hr x 250 days): $20,000
Dispatch Overhead: $10,000
Total Jobs Per Year: 400
Result: $50,000 ÷ 400 = $125 per Truck Roll
How to Lower Your Cost (and Boost Your Profit)
Once you know your number, you can take strategic action:
Route Optimization: If you can reduce average travel time by 15 minutes per job through better GPS routing, you could save thousands in labor costs annually.
Inventory Management: The "second trip" is a profit killer. If a technician has to leave a job to go to a supply house because they didn't have a $5 part on the truck, your truck roll cost for that job just doubled.
Adjust Your Minimums: If your truck roll cost is $125, but your "diagnostic fee" is only $89, it’s time to raise your prices. Your minimum fee should always cover the truck roll plus a small profit margin.
The Bookkeeper’s Perspective
Knowing your truck roll cost transforms your bookkeeping from a "historical record" into a "predictive tool." When you know exactly what it costs to move your fleet, you can bid on jobs with confidence, knowing exactly where your break-even point lies.
Need help digging into your COGS (Cost of Goods Sold) to find your true truck roll cost? Contact us today for a fleet-focused financial review.
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Your Numbers
Formula
(Vehicle Costs + Travel Labor + Dispatch/Admin) ÷ Total Calls
Quick Review
- Does your service fee cover your true cost?
- Are second trips reducing profit?
- Could routing reduce labor time?
- Are your costs clearly tracked?