Callout Fee Explained

What is a Call-Out Fee?

A call-out fee is a charge applied for traveling to a job site or client’s location. It's commonly used by service providers like repair technicians, consultants, or contractors to cover the cost of travel and time spent on the road.

How to Compute a Call-Out Fee: Simplified Example 

1. Determine Your Standard Call-Out Fee:

• This is a fixed amount you charge for traveling up to a certain distance or time. For instance, let’s say your standard call-out fee is $50 for travel within 30 minutes 

2. Calculate Travel Time: 

• Use a map tool like Google Maps to find the travel time from your location to the client’s location. Suppose it takes 40 minutes to get there 

3. Compare Travel Time:

• Check if the travel time exceeds your standard call-out time. In this example, your standard time is 30 minutes, and the travel time is 40 minutes 

4. Calculate Additional Time:

• Subtract your standard time from the actual travel time to find the extra time. Extra Time=40 minutes−30 minutes=10 minutes\text{Extra Time} = 40 \text{ minutes} - 30 \text{ minutes} = 10 \text{ minutes}Extra Time=40 minutes−30 minutes=10 minutes

5. Apply Additional Charges:

• If you charge an extra $1 per minute beyond the standard time, calculate the additional fee. Additional Fee=10 minutes×$1/minute=$10\text{Additional Fee} = 10 \text{ minutes} \times \$1/\text{minute} = \$10Additional Fee=10 minutes×$1/minute=$10 

6. Compute Total Call-Out Fee:

• Add the standard call-out fee and the additional fee. Total Call-Out Fee=$50+$10=$60\text{Total Call-Out Fee} = \$50 + \$10 = \$60Total Call-Out Fee=$50+$10=$60

Summary

• Standard Call-Out Fee: $50 (for up to 30 minutes)

• Travel Time: 40 minutes

• Extra Time: 10 minutes

• Additional Charge: $1 per minute

• Total Call-Out Fee: $60

This simple method ensures you cover both your standard fee and any extra time needed for travel.