At a glance
- Service call (trip) fee
- Covers drive time, fuel and the first minutes on site
- Diagnostic fee
- Covers the skilled time to find the fault
- Built from
- Loaded labor cost per hour and average drive time
- Waive it?
- Only against a job you actually book, and say so up front
- State it
- On the phone, on the website and on the invoice
Prices and rules change. Verify every item with the vendor or agency before you rely on it.
Short answer: Set your service call fee from the real cost of the trip: average drive time at your loaded labor rate plus fuel and a share of overhead. Set a diagnostic fee from the skilled time it takes to find the fault. Say both before you roll the truck, and if you credit them toward the repair, decide that policy once and apply it every time.
Updated October 12, 2026. Requirements and fees change; confirm with the agency named on this page.
The service call fee is the first price a customer hears, and the one new contractors are most tempted to skip. Skip it and every no-sale call is a loss. Set it right and it pays for the drive even when the customer says no. Here is how to build both fees from your own numbers.
What does a service call fee cover?
The trip. Drive time there and back, fuel, wear on the truck and the first few minutes on site. Those are paid hours for your tech that bill nothing unless this fee exists. Take your average round trip in minutes, price it at your loaded hourly rate, add fuel and a share of overhead, and round to a clean number. If your service area is wide, use two zones.
What does a diagnostic fee cover?
Finding the problem. A tech who spends 45 minutes tracing a short or a leak has done skilled work whether or not the customer approves the repair. The diagnostic fee prices that time. Many shops bundle it with the trip into one "service fee," which is fine as long as the number covers both.
Should you waive the fee if they book the repair?
You can, and many shops credit the service fee toward the job. The rule is to decide once and apply it every time, because a fee waived on the phone to win the call and then charged on the invoice is how you earn a one-star review. Put the policy in writing on the website and on the quote. If you credit the fee, your price book lines must carry enough margin to absorb it.
How to say it on the phone
State it before the appointment is booked: the fee, what it covers, and what happens if they approve the work. A CSR who hesitates here costs more than the fee itself. Our guide on training a CSR to book calls has the script. Then put the same number on the invoice as its own line.
What about free estimates?
Free estimates work for planned replacement and remodel work where the customer is shopping and you are selling. They do not work for repair calls, where the customer wants it fixed today and the "estimate" is really a diagnosis. Separate the two on your website: free estimates on installs, a stated fee on service calls.
Three mistakes to avoid
- Copying the fee from a bigger company. Their drive time, trucks and overhead are not yours.
- Leaving it off the invoice. A fee that is not on paper is a fee you will argue about.
- Changing it per customer. One fee, one policy, every call.
Washington contractors: a service fee is part of the retail sale, so sales tax applies to it like the rest of the invoice. See sales tax for Washington contractors.
This guide is general business education, not legal, tax or financial advice. Your numbers come from your own books.
Want it handled, not just explained?
Operator is the AI business coach for contractors.
A business audit and a plan, an online mentor you can ask any time, team training for your crew, and deadline reminders. $79/month, any state, cancel anytime.
Common questions
How much should a service call fee be?
Enough to cover the round trip at your loaded hourly rate plus fuel and overhead, rounded to a clean number. It differs by shop and service area, so build it from your own drive times rather than copying a competitor.
Is a diagnostic fee the same as a service call fee?
No. The service call fee covers the trip. The diagnostic fee covers the skilled time to find the fault. Many shops combine them into one service fee, which works as long as the number covers both.
Should I waive the service fee if the customer books the repair?
You can credit it toward the job, but set the policy once and apply it to every call, in writing. A fee waived to win the call and then charged on the invoice is the fastest way to a bad review.
Sources
Official pages checked on 2026-10-12.