Dashboard Medical Courier System
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Module 10 Day 10 of 14

Pricing Your Routes: The Exact Formula

10 min read 5 sections

Why Most Couriers Underprice

Two reasons: they don't know their actual costs, and they're afraid the client will say no.

The spiral is predictable: low rate → low profit → can't maintain vehicle → reliability drops → client leaves. You end up worse off than if you'd priced correctly from day one.

Here's what the market actually looks like for established routes:

Route Type Typical Range
Physician office daily morning (30mi RT)$250–$450/mo
Diagnostic lab sub-contract (Mon–Fri)$900–$1,600/mo
Hospital STAT on-call (3 days/wk)$1,200–$2,000/mo
Specialty clinic (3x/week)$300–$600/mo
Price it right from the start. Starting low and raising in month 3 is the fastest way to get fired.

The Pricing Formula

Every rate you quote should come from the same formula:

Base Rate = (Fuel Cost + Vehicle Wear + Time Value) × 1.35

Where:

  • Fuel = (miles ÷ MPG) × gas price
  • Wear = miles × $0.08
  • Time = hours × target hourly (minimum $30)
  • 1.35 = 35% margin for overhead + profit

Worked example: 35mi RT, 28 MPG, $3.50 gas, 45 min, target $35/hr:

Fuel $4.38 + Wear $2.80 + Time $26.25 = $33.43 × 1.35 = $45.13/run × 22 runs = $993/mo

Always quote monthly flat rates. "$950/month" is less intimidating than "$43 per pickup" — even though the math is identical.

Rate Calculator

Enter your route details to get your recommended rate instantly.

Cost Per Run
Recommended Per-Run Rate (1.35x)
Monthly Flat Rate
Annual Contract Value

Negotiation Scripts

These three situations will come up. Know exactly what to say.

Script 1 — Client pushes back on rate

"I understand that feels high. Let me show you the breakdown. The rate reflects full commercial insurance, HIPAA compliance, and a backup coverage plan. What I'm hearing other physicians pay for less reliable service is actually higher. I can't go lower without cutting on insurance or compliance. But I can offer a 90-day rate lock."

Script 2 — Client wants per-pickup

"I can do that. My per-pickup rate is $[X] — slightly higher than the monthly flat because I price for variability. If your volume is predictable, the monthly flat is a better deal. What's your typical pickup frequency?"

Script 3 — Competing against lower quote

"I appreciate you sharing that. If that other service is cheaper, there's usually a reason — most often lack of insurance or no backup plan. My pricing includes $1M general liability that protects your practice. That's not in the other quote."

Rate Sheet Template

A printed rate sheet closes deals faster and anchors client expectations before negotiation begins. Print 10 copies and bring them on every walk-in visit.

Rate Sheet Template

Customize with your business name and rates, then print.

[YOUR BUSINESS NAME]
MEDICAL COURIER RATE SHEET

STANDARD ROUTE
Daily Mon-Fri morning pickup & delivery
Up to 40 miles round trip
Starting at $[X]/month

EXTENDED ROUTE
Daily pickup + afternoon return
Up to 60 miles round trip
Starting at $[X]/month

STAT / ON-CALL
2-hour response window
Any day of week
Starting at $[X] per run

CUSTOM ROUTES
Multi-stop routes, weekend schedules,
and high-volume contracts quoted individually.

All rates include:
- Full commercial auto insurance
- $1M general liability coverage
- HIPAA-compliant handling
- Backup driver coverage
- Chain of custody documentation

Rates subject to annual adjustment (max 5%).
Contact: [Name] | [Phone] | [Email]
Up next — Module 11 Operations: Running Your Routes Like a Real Business