The van is your transport, your store cupboard and sometimes your office. It’s also one of the easiest business costs to underestimate. A monthly finance payment might look manageable until insurance renews, two tyres need replacing and the dashboard lights up halfway to a job.
If you price work without allowing for the full cost of keeping the van on the road, you can be busy every day and still find there’s very little left.
Count the costs that don’t arrive every month
Start with finance or depreciation, insurance, vehicle tax, servicing, MOT, tyres, breakdown cover, repairs and fuel or charging. Add parking, tolls, congestion or clean-air charges where relevant. Then think about racking, security, tools carried, signage and the cost of replacing damaged equipment after a break-in.
Put the annual total alongside your mileage and number of working days. That tells you roughly what the van costs per mile and per chargeable day. It won’t capture every awkward journey, but it makes your quotes more realistic.
A cheap van can be expensive to own
An older van with no monthly payment may be perfect if it’s reliable and easy to maintain. But repeated repairs and lost working days can swallow the saving. Equally, a newer van on finance can tie you into payments during quiet periods.
Compare the whole cost over several years, not just the purchase price or advertised monthly figure. Include any deposit, interest, mileage limits, end-of-contract conditions and likely resale value. If you’re considering electric, check your actual routes, payload needs and realistic charging arrangements before relying on headline running-cost claims.
The journey between jobs costs money too
A half-hour trip to collect one missing fitting can turn a profitable afternoon into a poor one. So can zigzagging across the county because you accepted every small job in the diary.
Group appointments by area where you can, order materials in advance and be clear about travel charges for distant work. Some trades can build a call-out fee into small jobs; others may find a minimum charge clearer. The point is to stop giving away travel time without realising it.
Keep the van working, not just moving
Regular maintenance is easier to plan than an unexpected breakdown. Check tyres, lights and fluid levels, and make sure your tools and stock are organised so you’re not buying duplicate fittings you already own. Secure expensive equipment and review what your insurance actually covers overnight and at different
locations.
It’s worth having a backup plan if the van is off the road. Can you hire a suitable replacement, borrow a vehicle legally and with appropriate insurance, or rearrange work without losing every customer that week?
Put the true cost into your prices
Review the figures at least twice a year. If your working area has expanded or you’ve taken on heavier equipment, yesterday’s assumptions may no longer hold. A small, transparent travel or call-out charge can be easier for customers to understand than quietly absorbing the cost until the business struggles.
Your van earns its keep only if your pricing recognises what it costs to run. Otherwise, you’re effectively paying to get to work.
Know someone whose van seems to spend more time at the garage than on the road? Share this article. Trade Mind is about making working life a little more manageable.
