Flat Rate Math

How to Price Service Calls and Small Electrical Jobs Without Losing Money

Updated August 28, 2026

A one-man electrical shop should charge a service call fee of roughly $100 to $200 that covers the drive and the first 30 to 60 minutes, and should never do a job for less than a minimum charge of about $150, no matter how quick the task. The exact numbers come from your shop rate - for a solo shop with realistic overhead, about $120 an hour - not from what the shop down the road prints on its van. Below is how to set each of the three tools (service call fee, trip charge, minimum job charge), which one fits which market, and what a receptacle swap should really cost.

Why small jobs are the leak

Replacing a receptacle takes half an hour. At a $120 shop rate that is $60 of labor plus $10 of marked-up material: $70. Reasonable, and it is exactly what a flat-rate book will produce if you let it.

But that half hour is not the job. The job is: the call, the schedule, the 20-minute drive, parking, the conversation, the work, the write-up, the payment, and the 20-minute drive to the next one. Call it an hour and a half of your day for $70. Your true hourly cost is about $98. You just paid $77 to do that job.

Multiply by the 200 small jobs a service shop does in a year and the small-jobs leak is a five-figure hole that never shows up on any single invoice.

Tool 1: The service call fee

The service call fee, sometimes called a diagnostic fee or dispatch fee, is a fixed charge for showing up and starting work. Typical range: $100 to $200. It usually covers the first 30 minutes or the first hour, and it is charged whether or not the customer proceeds with the repair.

Set it from your rate. If your shop rate is $120 and a typical call costs you 20 minutes each way plus 30 minutes on site:

Component Time At $120/h
Drive there and back 0.67 h $80
First 30 minutes on site 0.5 h $60
Service call fee (raw) $140
Rounded $145 to $150

Some shops quote it as “two billable hours” to keep the math simple, which at $120 is $240 - high for most residential markets, fine for commercial. Forum examples from small shops run from $90 (covering the first 30 minutes) up to $189 flat.

Use the service call fee when the scope is unknown: dead circuits, tripping breakers, “the outlets in the bedroom stopped working.” Find the problem, then quote the repair as a fixed price.

Tool 2: The trip charge

A trip charge is a flat add-on for travel, typically $25 to $45, often only outside a radius (one small shop charges $30 beyond 15 miles). It is simpler than a service call fee and works for shops whose customers already accept a book price for the work.

At a $120 rate, a 40-minute round trip costs you $80. A $30 trip charge does not cover it; it covers the part customers will accept without argument. That is fine as long as the book prices carry the rest, which is what the minimum job charge is for.

Tool 3: The minimum job charge

The minimum job charge is the floor under every invoice. If the book says $70 and your minimum is $150, the customer pays $150. It is the cleanest fix for the small-jobs leak because it needs no explanation on the invoice: the price is the price.

Set it so a single small job in a normal drive radius at least breaks even:

Component Time At $120/h
Drive, both ways 0.67 h $80
Work and write-up 0.5 h $60
Material with markup $10
Minimum (raw) $150

A $150 minimum turns the $70 receptacle into a job that pays for the truck that brought you there.

Which structure fits which shop

If you… Use
Do a lot of troubleshooting in old housing stock Service call fee ($100 to $200) plus book price for the repair
Do mostly defined jobs (fans, fixtures, devices, EV chargers) Minimum job charge ($150 to $189) with book prices
Cover a wide rural radius Trip charge by distance on top of either of the above
Serve property managers or GCs Hourly with a one-hour minimum and a written rate sheet

Most one-man residential shops end up with a service call fee for unknowns and a minimum job charge for everything else. See flat rate vs hourly for the longer version of that hybrid.

Worked examples at a $120 shop rate

Assume 25 percent material markup, $150 minimum, no trip fee, Normal grade.

Job Base hours Material Book price Invoice
Replace standard receptacle 0.5 $8 $70 $150 (minimum)
Replace single-pole switch with dimmer 0.5 $25 $95 $150 (minimum)
Replace GFCI receptacle 0.5 $22 $90 $150 (minimum)
Replace ceiling fan on existing box 1.5 $0 $180 $180
Replace 20A breaker 0.75 $12 $105 $150 (minimum)
Diagnose dead bedroom circuit, then replace backstabbed receptacle service call + 0.5 $8 $150 + $70 $220

Three things to notice. Every small device job lands on the minimum, which is the point. The fan clears the minimum on its own. And the diagnostic call shows the two-part structure: fee to find it, book price to fix it, both known before the ladder comes off the truck.

Stacking small jobs

The best answer to the small-jobs leak is to not do them one at a time. When a customer calls for one receptacle, ask what else has been bugging them. Two devices and a dimmer on one trip at book price is $255 for about 90 minutes on site, against one drive. A “while I’m here” discount of 10 percent on the second and third items is cheap compared with a second trip.

Put a line in the book for it: additional device on the same visit at 0.35 hours instead of 0.5.

Explaining the fee without apologizing

Say it once, calmly, before you get in the truck. Customers who object to a $150 minimum were going to object to everything.

Next step

All three numbers - service call fee, trip charge, minimum - only work if the shop rate underneath is right. Run your overhead, salary target and billable hours through the free Trade Hourly Rate Finder first. If you want the book that applies that rate to 75 tasks with a minimum job charge and trip fee built into every price, that is what the Flat-Rate Price Book Builder does.

Frequently asked questions

Should the service call fee be waived if the customer goes ahead with the repair? Many shops do this and it is a sales tool, not a pricing rule. If you waive it, make sure the repair price from your book still covers the drive - which it will if your minimum job charge is set correctly.

Do I charge a service call fee for a job I already quoted? No. A quoted job has a fixed price. The service call fee is for diagnosis when the scope is unknown.

What about a return trip for a part I did not have? If it is a normal stock item, that is on you - eat it and fix your truck stock. If it is a special-order item, quote the second visit as part of the repair price up front.

Is $150 too high for a minimum in a rural market? Your drive times are longer, not shorter, so the minimum should be higher, not lower. If the market will not bear it, add a trip charge by distance so nearby customers are not subsidizing far ones.