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View Full Version : Who raised prices b/c of gas?? Now what??


PTOhioMower
04-19-2005, 04:42 PM
What will you do if your customers complain that you raised the price per cut because of rising fuel costs now that gas prices are falling fast?

Are you gonna lower the price back to what you used to charge or leave it as is?

br549oicu8
04-19-2005, 05:23 PM
Prices are falling?????
Tell me more cuz I haven't seen it yet.

Charles
04-19-2005, 05:33 PM
They are not falling here. Anyway fuel prices will fluctuate. I wouldnt get excited it they fell 50 cents because the next day they can jump back up 50 cents.
To me prices are still high until they drop to under $1. 20 or less-- at least for here

nobagger
04-19-2005, 05:44 PM
What will you do if your customers complain that you raised the price per cut because of rising fuel costs now that gas prices are falling fast?

Are you gonna lower the price back to what you used to charge or leave it as is?
I'm on the fence about gas price stipulations that I see in here all of the time. I actually left most of my accounts alone as far as price, and the ones I raised I locked them into a 2 yr contract. To me if you tell someone that the only reason you are raising their price is fuel prices, I think they have a right to complain when the cost of fuel drops to a reasonable rate. And they have a valid point! Unless you lower it accordingly. Now we're only talking 2-6 dollard increase for most 2 being residential and 6 being commercial either one will not break their banks.

rodfather
04-19-2005, 05:45 PM
Exactly why we use a fuel surcharge (as needed) instead of arbitrarily increasing mowing price across the board.

Aussie Topcat
04-19-2005, 05:47 PM
Over here in Australia, Melbourne we are paying $107.9 cents per litre at the moment and that just fell from $117.9 :realmad:

rodfather
04-19-2005, 05:49 PM
Wow, that is more than $4 (US) a gallon for us...in Europe right now it's $6.50 - $7.25 a gallon. OUCH!

MMLawn
04-19-2005, 08:28 PM
Yeah, it has dropped .26 cents a gallon here in not quite 2 weeks.....but I'm sure they'll do their best to get it back up for us all :rolleyes:

stuie
04-19-2005, 09:34 PM
Over here in Australia, Melbourne we are paying $107.9 cents per litre at the moment and that just fell from $117.9 :realmad:
Gee toppy thats still cheap :angry:
Unleaded here in Sydney 110.9 per litre with 4 cent discount Shell

Diesel 122.9 at the local service station
The Ampol further on 127.9 cents a litre :realmad: :realmad:
STUART

jpp
04-19-2005, 09:54 PM
Some prices got raised because of the cost of living, insurance, labor. I put a surcharge in for fuel only. I saw gas for 1.93 here in the part of Columbus where I live. Where are you located in Columbus? I am near the OSU campus.

gogetter
04-19-2005, 10:09 PM
What will you do if your customers complain that you raised the price per cut because of rising fuel costs now that gas prices are falling fast?


This is exactly the reason you don't tell them you're raising prices because of fuel, but rather becuase of cost of living, increased costs of doing business, etc. But you don't give them one specific reason, especially something that fluctuates like fuel.

tinman
04-19-2005, 10:13 PM
They are not falling here. Anyway fuel prices will fluctuate. I wouldnt get excited it they fell 50 cents because the next day they can jump back up 50 cents.
To me prices are still high until they drop to under $1. 20 or less-- at least for here
I agree,,,, The big wheels / Gov, have the "people" so F'd up they think $2.08 is a good deal after seeing $2.20 last week around here.

I raised most of my prices mainly because of fuel & certainly won't be lowering them.

TLS
04-19-2005, 10:15 PM
This is exactly the reason you don't tell them you're raising prices because of fuel, but rather becuase of cost of living, increased costs of doing business, etc. But you don't give them one specific reason, especially something that fluctuates like fuel.

EXACTLY!!!

EVERYTHING is going up in price. Vehicles, Insurance (all), mowers, tools, labor, and lastly....gas.

GreenQuest Lawn
04-19-2005, 10:17 PM
That is where the fuel surcharge shines. Its ONLY in effect for me if prices get over $2.00 per gallon. This is ANY time during the month. But if they fall, I do not charge it.

PTOhioMower
04-19-2005, 11:02 PM
This is exactly the reason you don't tell them you're raising prices because of fuel, but rather becuase of cost of living, increased costs of doing business, etc. But you don't give them one specific reason, especially something that fluctuates like fuel.


Very good advice. Thank you!!

PTOhioMower
04-19-2005, 11:27 PM
Gas here was up to $2.44 about a month ago and have been steadly falling. Its down to $1.90.

Link on gas prices here (http://news.yahoo.com/news?tmpl=story&u=/usatoday/20050419/bs_usatoday/analystworstisoverforgasprices) .

LwnmwrMan22
04-20-2005, 01:05 AM
Gas here has dropped 40 cents in the last 2 1/2 weeks.

Soupy
04-20-2005, 01:24 AM
Exactly why we use a fuel surcharge (as needed) instead of arbitrarily increasing mowing price across the board.

What Rod said....... The only problem I am having is my proposals (3 carbon from last year. I ordered way to many) have a gas surcharge at $2/gal. Everyone is starting off with a fuel surcharge :).

Duramax99
04-20-2005, 07:42 AM
The gas surcharge is the way to go but I would boycott ExxonMobil becuase they get most of their oil from Iraq and Suadi Arabia. When all of us are tring to figure out what to do about rasing cost of gas. ExxonMobil are posting their highest profits ever in United States history by a publicly traded company.

65hoss
04-20-2005, 08:42 AM
I did the fuel surcharge last year. This year I raised prices on most. A few I was already doing very well with, I left alone.

Fuel prices are not really going down. In reality, if most of us have been in business a while, we priced our jobs originally based on a gas factor or $1.25 or less per gallon. I had a figure of $1.75 per gallon to be my point for a surcharge. It took 3 yrs for that to happen. I used the surcharge then, but face it, it will never be $1.75 or less again. With everything at $2+, it was just time to make adjustments.

No complaints from anyone so far. If they don't like it, they can take a hike.

TLS
04-20-2005, 08:48 AM
It's not so much the price of gas that affects our bottom line.

Rather, like I said above, it's everything else that goes up around it. Anything that touches a truck, train, or boat has increased in price. Just because of the Fuel crisis, other "things" increased in price substaintialy. That is what we need to raise our prices for, not the 6/10's of a gal of gas per yard.

grass_cuttin_fool
04-20-2005, 09:22 AM
Im with 65hoss, I had most of my prices based on gas at $1.25, last year I just ate the extra cost unless I got a n ew customer then they got the new hourly rate. This year everyone got a $2.50 increase on their mow because I was a little too cheap to start with, Insurance prices have almost doubled on me and gas was about $1 higher than it was 2 years ago. I had a few customers that were paying above what I wanted to make and they saw no change in there cost

Davis Lawn Mowing, LLC
04-20-2005, 10:19 AM
Everyone this year has gotten a $2.00 increase. Most customers understood, some did not. The ones that did not seem to think I am doing this for the fun of it and my health. They got booted on the spot.

Premo Services
04-21-2005, 08:37 PM
It goes down a few cents for a couple hours or a day and then goes up like 20 or more cents a gallon.

I raised all my prices this year because the COST OF DOING BUSINESS has went up, not just gas, everything.

Also have a clause that if it tops a certain mark a surcharge will be added until it goes down...

jt5019
04-21-2005, 09:56 PM
Its has dropped a bit here $2.17 for reg is the lowest ive seen most places are around $2.21.Just heard prices may be going back up some though

nitrotim
04-23-2005, 11:12 AM
What will you do if your customers complain that you raised the price per cut because of rising fuel costs now that gas prices are falling fast?

Are you gonna lower the price back to what you used to charge or leave it as is?

One of the things I don't understand is that I see guys adding a 5 dollar gas surcahrge. I am bordering on about 34 customers right now I know my gas cost hasn't gone up 170 a week. I added a dollar to each statement and if gas comes down I will make changes to that. I know that if I added a five dollar surcharge to each customer I would miss 170 a week alot more than 34.

Charles
04-23-2005, 11:46 AM
I just added 1$ to 3$ on most of my customers. That way I dont have to give it back if prices come back down. I just dont like the idea of sticking it to people for what is not their fault