Minimum Job Charge for a Service Business: How to Set One
A minimum job charge should cover your drive time, setup, and a baseline profit even on the smallest possible request — typically $75–$150 for most solo service trades, calculated from your actual travel cost and time rather than picked arbitrarily. Without one, a five-minute fix an hour away can cost you money once gas, wear on your vehicle, and lost opportunity to take a bigger job are factored in.
Why a floor number matters
Every job has a fixed cost before you’ve done any actual work — drive time, gas, and the setup and teardown of getting your equipment ready. Below a certain job size, that fixed cost outweighs what you’re charging for the work itself, and you lose money by taking it.
What goes into the number
Calculate it, don’t guess it:
- Average drive time and gas for a typical local job.
- Setup and teardown time — loading, unloading, prepping equipment.
- A baseline profit margin on top of the above, so the smallest job still contributes something, not just breaks even.
$75–$150 covers this for most solo service trades, but your own number depends on your market and how spread out your service area is.
State it up front, every time
A minimum charge that surprises a customer at invoice time reads as a bait-and-switch, even when it’s a perfectly fair number. State it when quoting, on your booking page, or in your intake form — nobody should learn about it for the first time on the invoice.
It’s not just about small jobs — it’s about which jobs you take
A clear minimum also filters your calendar. Customers looking for the absolute cheapest possible job self-select out, leaving more room for jobs that are actually worth your drive time. That’s a feature of having a floor, not a downside.
Revisit it as your costs change
Gas prices, drive times in a growing service area, and your own hourly value all shift over time. Treat the minimum as a number to revisit yearly, not a figure you set once when starting out and never touch again.
Frequently asked questions
Isn't a minimum charge going to lose me small jobs?
Some, yes — and that's the point. A job priced below your real cost to show up isn't worth taking regardless of whether you lose it to a competitor willing to work at a loss.
How do I calculate my minimum instead of guessing?
Add up your average drive time and gas cost for a typical local job, your setup and teardown time, and a baseline profit margin. That total is your floor — round it to a clean number customers can quote back to a neighbor.
Should I tell customers about the minimum up front?
Yes, always. State it when quoting or on your booking page so nobody's surprised at invoice time — a hidden minimum feels like a bait-and-switch even when the number itself is fair.