For technicians

Setting your rates: hourly, flat rate, travel and minimums

By the Techwhere editorial team Last updated 7 min read

In short

Field work is priced two ways: hourly with a minimum, or a flat rate per ticket. Neither is better in the abstract — hourly protects you when a job overruns, flat rate rewards you when it does not. What actually decides whether a rate is good is the surrounding terms: the minimum, the travel policy, the no-access policy and the payment terms.

Hourly or flat rate?

HourlyFlat rate
How it worksPaid for time on site, usually with a minimum.A fixed amount per ticket however long it takes.
Protects you whenThe job overruns or the site is not ready.You are fast and the work is predictable.
Hurts you whenYou are efficient and finish early.Scope is vague or the site fights you.
Best forTroubleshooting, cabling, anything open-ended.Repeatable swaps and installs you have done many times.

A reasonable default is to prefer hourly for anything diagnostic and accept flat rate only for work you have done enough times to estimate confidently. The moment a flat-rate ticket type starts routinely overrunning, it has stopped being a flat rate and started being a discount.

What is a minimum, and why does it matter more than the rate?

A minimum is the smallest amount you are paid for attending, regardless of how long the work takes. Two to four hours is a typical ask . It exists because the drive, the parking, the sign-in and the paperwork cost you the same whether the job takes twenty minutes or two hours.

A high hourly rate with a one-hour minimum is often worth less than a lower rate with a four-hour minimum, because most field tickets are short. Work out what a realistic day looks like — two or three tickets including travel — and compare the day, not the hour.

How should travel be handled?

Three models, and you need to know which one applies before you accept:

  • Included in the rate. Common where the radius is small. Fine locally, punishing at distance.
  • Paid per mile beyond a radius. The fairest common arrangement. Confirm where the radius is measured from — your base or the previous site.
  • Not paid at all. Workable only if the minimum is generous enough to absorb it.

Whichever applies, price the whole journey. A two-hour round trip for a two-hour minimum is a half-day for two hours of pay. That can still be worth taking to build a relationship, but take it knowingly rather than discovering it afterwards.

What else changes the real value of a rate?

No-access and trip fees

What happens when you arrive and the site is closed, the contact is absent, or the equipment is not there? A no-access or trip fee covers you for turning up. Without one, a wasted journey is entirely your cost. This is the single most valuable thing to confirm before accepting.

After-hours and weekend premiums

Much field work happens outside trading hours precisely because it cannot disrupt business. If a ticket is scheduled overnight or on a weekend, ask whether a premium applies. Many companies have one and simply do not mention it.

Parts and expenses

Who buys the parts, who pays for parking, and who covers shipping on returns? Being asked to front money and claim it back later puts your cash at risk for someone else's project. Prefer arrangements where parts are shipped to site or to you in advance.

Payment terms

A rate paid at net 60 is worth less than a slightly lower rate paid at net 15. Terms are part of the price — see how to get paid on time.

How do you work out your own number?

Start from what the work costs you rather than from what sounds reasonable. Over a year, add up the things that come out of your rate before anything reaches you:

  • Vehicle: fuel, maintenance, insurance, depreciation.
  • Tools and replacements.
  • General liability insurance.
  • Phone and data.
  • Certifications and renewals.
  • Unbilled time: travel, paperwork, chasing invoices, onboarding.
  • Self-employment and income tax set aside from every payment.
  • Unpaid gaps between tickets.

The last two are what most technicians underestimate. A rate that looks healthy against an employee hourly wage often is not once tax, gaps and unbilled hours are taken out. We are deliberately not publishing rate figures here — they vary too much by region, work type and client for any number to be honest.

What to confirm before you accept any ticket

  1. The rate and whether it is hourly or flat.
  2. The minimum.
  3. The travel and mileage policy, and where the radius is measured from.
  4. The no-access and trip-fee policy.
  5. Any after-hours or weekend premium.
  6. Who supplies and pays for parts and expenses.
  7. The payment terms and the invoice submission channel.
  8. The scope, the site contact and the expected duration.

Get it in writing. A rate agreed on the phone and not reflected on the work order is the rate you will have to argue for later.

Checklist

  • Rate and structure confirmed in writing before accepting
  • Minimum stated
  • Travel policy clear, including where the radius is measured from
  • No-access and trip-fee policy agreed
  • After-hours and weekend premium confirmed
  • Parts and expenses responsibility agreed
  • Payment terms known and priced in
  • Your own annual costs calculated, including tax and unbilled time
  • Day-rate maths checked, not just the hourly figure

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