Empty mileage is one of the most awkward conversations in coach sales. Customers see their route and think ‘40 kilometres’. You see 90: leaving the depot, picking up, dropping off, returning or positioning for the next service.
Not charging for them doesn’t remove them. It only hides them in your margin.
Don’t present it as a penalty
Saying ‘I’m charging you for empty running’ sounds bad. Talk about an all-in service price including vehicle positioning. Customers don’t need every internal kilometre, but you need to calculate them.
When to explain it separately
Show it for services far from the depot, routes ending in another province or last-minute requests. Transparency helps. Avoid sounding defensive: this is vehicle availability, not an arbitrary extra.
Customers buy a service available at a place and time. That includes getting the vehicle there.
Create departure zones
Zones avoid debates: Zone A without a surcharge, B with an adjustment and C by quotation. Sales staff don’t negotiate every kilometre, and customers understand that distance from the depot matters.
Use minimum service charges
Minimum charges protect short services with extensive positioning. A 20-minute transfer can occupy a driver, vehicle and return journey for two hours. Without a minimum, it looks profitable on paper but hurts cash flow.
What to do with regular customers
With regular customers, agree a reference depot, discounts for matching return journeys or a monthly price for minimum volume. The discount should have an operational reason, rather than being automatic.
Measure actual empty running
Review which trips generate the most empty kilometres and how much they cost. That information helps you improve assignments, combine routes or adjust rates in those areas.
The trip price should also cover the travel needed to deliver it. Calculate that cost even if you include it in a fixed price for the customer.
