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View Full Version : Got to love the oil companys!!!!


DENNIS MOW
03-02-2008, 09:53 PM
Going to be a very expensive spring and summer around the states. Got to charge the customers more to cover fuel. What are some of the prices around the states. Around here we are pushing 3.10 a gallon. :hammerhead:

tamadrummer
03-02-2008, 10:00 PM
Dude this has been beaten to death. If you go one page one way or the other you will find the very same topic to post in.

Yes, gas is expensive and charging more is the #1 priority. Running synthetic fuel and maintaining a tight route is another important part.

Good Luck and welcome to LawnSite.com

greenhornet
03-03-2008, 11:33 PM
gas prices s--k here on long island $3.30 today for reg. some one told me about a web sight called gas buddy.com here they give a listing of all prices of gas in previous years. use it when you notify your customers that you are returning for another year to service them. then you lay it on them that you have to charge more. good luck. '' the green hornet"

woodbutcher44
03-03-2008, 11:50 PM
$173.80 per 55 drum in ocala that is the low grade.
I set my prices as if it were already $5.00 per gallon save the differance so when it gets that high I got a little play time.

mowing grass 1111
03-04-2008, 12:01 AM
Dude this has been beaten to death. If you go one page one way or the other you will find the very same topic to post in.

Yes, gas is expensive and charging more is the #1 priority. Running synthetic fuel and maintaining a tight route is another important part.

Good Luck and welcome to LawnSite.com

X 100,000,000:)

millenium_123
03-04-2008, 12:05 AM
$173.80 per 55 drum in ocala that is the low grade.
I set my prices as if it were already $5.00 per gallon save the differance so when it gets that high I got a little play time.

This is a great idea, I am doing the same thing. I think it will top 4.00 here this summer.

millenium_123
03-04-2008, 11:55 AM
The price of oil hit $104 today! Do you realize it has DOUBLED in 1 year? What will happen if this trend continues?

topsites
03-04-2008, 12:12 PM
Yes, I'm sick and tired of these stupid threads, too.

So I think everyone who feels the price of gas is high should do some research so as to better understand the current problems we all face, because once you're up to date on the crisis I believe the price of fuel will be the last of your concerns.

Now either reduce your consumption, increase your prices, or stop complaining.

We could, of course, take the easy way out and just increase prices and leave it at that.
That would be the absolute dumbest way of dealing with it, but it works and I still accept dumb solutions over none at all.

millenium_123
03-04-2008, 12:17 PM
I think you should do some research so you can better understand the current problem we all face, because once you're up to date on the crisis I believe the price of fuel will be the last of your concerns.

And yes, I'm sick and tired of these stupid threads, too.
Either reduce your consumption or stop complaining.

I'm aware of the other issues, I'm not an idiot. This was just on my mind. And if you are "sick and tired of these stupid threads" stop responding to them.

Team-Green L&L
03-04-2008, 12:26 PM
Why is the answer to ignorant business owners' problems always "make the customer pay more?" That's the philosophy of monopolies like energy providers and oil companies themselves.

It is your job and duty to reduce internal costs before raising external. If you have not made the proper cuts internally and simply want to charge it to the end-user, then you may want to get into an industry with less competition. Landscaping and lawn care are commodities, my friend, and people (in general) will sacrifice commodities in economic uncertainty, rather than pay more for them.

Ask yourself the question: "If my lawn costs more to maintenance than ever before and I am more uncertain as to my economic position than ever before...would I pay more or mow it myself?"

PS: "Ignorance" is not stupidity!

topsites
03-04-2008, 12:29 PM
I'm aware of the other issues, I'm not an idiot. This was just on my mind. And if you are "sick and tired of these stupid threads" stop responding to them.

It's just more of that cry me a river crap I get from cheapo customers.

And it is old news, this crap is redneck conversation.
So it is ignorant, and it shows a lack of education, a lack of care, and a lack of motivation to boot.

So, how much higher do you want the price of fuel to be?
That is, what's it going to take to get you to do something about your problem?

Fine, I'm off to take my bmw for a drive, I hope the price of fuel jumps by a dollar nationwide since I have to fill'er up and I plan on driving lead footed, too!

Why is the answer to ignorant business owners' problems always "make the customer pay more?" That's the philosophy of monopolies like energy providers and oil companies themselves.

Because that's the simple answer.
You may not like it, but it does work.
Sooner or later someone will get it, offer enough money and SOMEONE will sit down and figure it out.
But for that to happen obviously we have to send a LOT of money out.

And so if everyone charged appropriately I can GUARANTEE we wouldn't have these threads.

It is your job and duty to reduce internal costs before raising external.

Correct.
Thank you for putting it in finer terms.

speedy29
03-04-2008, 12:52 PM
everybody is so scared of gas increases. I know $4/gal is scary but what is really the cost of fuel as a percentage of gross income? I ran at 5.4 percent last year. Total labor was 28% and over head payroll was 10%. my point being even if gas doubles I will only increase expense by 5.4% that my hurt a little but its not going to put me out of bus. I read a a similar thread a guy say he was going to surcharge 3% for every .50 rise in gas. That is way out of line, is his fuel cost 20% of gross? no wonder surcharges are unpopular with customers. Raise your prices or cut your cost in other areas thru increased efficiencies, a couple of points is not the end of the world.

Mr.Coleman
03-04-2008, 01:56 PM
Currently, half of my family's income comes from oil and gas production. The other half is from rental property, self storages, etc. We are not "rich" by any means, but I would say upper-middle class. When oil was 30$ a barrel because the Saudis were flooding the market, (and there were simply less consumers) my father worked 14 hours a day running a crop dusting business to pay the bills. Back then in people would laugh if you were in the oil business. For thoes of you that dont know, crop dusting is dirty blue collar work. Anyways after working 120 hours in one week my he ended up turning a 100K Air tractor into 80 bucks worth of scrap metal (forgot to put hit flaps down for thoes of you that are pilots). Luckly i still have a Dad. Yes, my family is making money now, but you people who complain about the price of gas need to understand there was a time when we the people who own oil production were suffering, and none of yall seemed to care. Everybody loves the "free market" when it helps them, but they all start yellin when it hurts them.

Team-Green L&L
03-04-2008, 02:07 PM
Currently, half of my family's income comes from oil and gas production. The other half is from rental property, self storages, etc. We are not "rich" by any means, but I would say upper-middle class. When oil was 30$ a barrel because the Saudis were flooding the market, (and there were simply less consumers) my father worked 14 hours a day running a crop dusting business to pay the bills. Back then in people would laugh if you were in the oil business. For thoes of you that dont know, crop dusting is dirty blue collar work. Anyways after working 120 hours in one week my he ended up turning a 100K Air tractor into 80 bucks worth of scrap metal (forgot to put hit flaps down for thoes of you that are pilots). Luckly i still have a Dad. Yes, my family is making money now, but you people who complain about the price of gas need to understand there was a time when we the people who own oil production were suffering, and none of yall seemed to care. Everybody loves the "free market" when it helps them, but they all start yellin when it hurts them.

I don't think anyone here is complaining about your father's income unless he claimed 80 BILLION dollars in first quarter earnings...

The fact remains that those who make a living in the oil industry are a little bias wouldn't you say? To hurt 98% of America in order to provide a better living standard for the other 2% is bad economics, but you can sure tell us some more about your capitalist beliefs if it makes you fell good.

Roger
03-04-2008, 02:21 PM
When I read the complaints about oil company profits, I wonder why so many other industries/companies are not mentioned. Often, when the quarterly profits are posted, people gasp and make outlandish comments. The percentage profit for oil companies reporting billion dollar profits is much lower than other companies. In other words, the $ profit on $ sales is lower for oil companies than many others, but these are the ones targeted for criticism. Others who make a greater percent profit are given a pass.

Why is this so?

DA Quality Lawn & YS
03-04-2008, 02:43 PM
The record profits oil companies are producing are product of the market, that part doesn't bother me so bad (ok, it does a little bit). The fact is that oil is coming from a source which are countries that hate us. They can manipulate production to their liking and we (being the U.S. and its consumers) don't have a lick of say.

I do believe oil is having its heyday now but over the course of the next several decades, it will start its exit out. Not totally out, but a crushing blow, yes, and FINALLY

Team-Green L&L
03-04-2008, 02:46 PM
When I read the complaints about oil company profits, I wonder why so many other industries/companies are not mentioned. Often, when the quarterly profits are posted, people gasp and make outlandish comments. The percentage profit for oil companies reporting billion dollar profits is much lower than other companies. In other words, the $ profit on $ sales is lower for oil companies than many others, but these are the ones targeted for criticism. Others who make a greater percent profit are given a pass.

Why is this so?

NET PROFITS ARE NOT HIDDEN WITH OVERHEAD COSTS...

ExxonMobil's earnings announcement that profits rose 75 percent from last year followed a BP announcement of $6.5 billion in profits, up 34 percent and ConocoPhillips reporting its income grew to $3.8 billion, up 89 percent.

Shortly after the Exxon Mobil announcement, while he was standing on the floor of the New York Stock Exhange, Senate Majority Leader Bill Frist (R-Tenn.) called for congressional hearings and investigation into oil company profiteering.

"If there are those who abuse the free enterprise system to advantage themselves and their businesses at the expense of all Americans, they ought to be exposed, and they ought to be ashamed," Frist said.

okeefl
03-04-2008, 02:54 PM
everybody is so scared of gas increases. I know $4/gal is scary but what is really the cost of fuel as a percentage of gross income? I ran at 5.4 percent last year. Total labor was 28% and over head payroll was 10%. my point being even if gas doubles I will only increase expense by 5.4% that my hurt a little but its not going to put me out of bus. I read a a similar thread a guy say he was going to surcharge 3% for every .50 rise in gas. That is way out of line, is his fuel cost 20% of gross? no wonder surcharges are unpopular with customers. Raise your prices or cut your cost in other areas thru increased efficiencies, a couple of points is not the end of the world.

Go back and re-read it again. here is an example:

Current gas price is $3.50/ gallon. Customer A gets a monthly invoice of $125.00.

Gas prices jump to $5.00/ gallon this summer. This lawn consumes on average 2 gallons of gas a month for mowers and 2-cycle.

The clause states 3% for every 0.50 cent increase over $4.50 monthly average.

Following me?

That month they get a bill for $125.00 + $3.75 (3%) = $128.75

I used $3.00 more in fuel that month for mower and 2 cycle only for this lawn...that does'nt even include diesel fuel for my truck. I recovered an additional $3.75 for that month.

If the prices fall they don't get a surcharge.

I guess I am reading this different than you, if not please tell me how this is out of line.

woodbutcher44
03-04-2008, 11:43 PM
Get a swing blade andsave fuel.
Or you can jack your price up to the customers breaking point and like magic poof I got a new customer lol
so cut back on the beer sodas or tea what ever you over indulge in.
Do 1 thats one cut per month extra to cover the charge. Keep your customers & you still have the bacon on the table.
whaaa whaaa
grow up and kwit your bickering. You cant do crat about it but pay any way

speedy29
03-05-2008, 12:39 PM
Okeele Does't compute. at $3.50 a gal you use $7.00 in fuel for $125 job that equals 5.6% of sales for fuel. so in order to stay at the same rate if fuel is $7.00 your % of fuel expense to sales would double to 11.2% of sales but with your formula of 3%for every $.50 over $4.50 you will increase their price by 15% and your only incurred an extra 5.6% in fuel cost.

dane1985
03-05-2008, 01:13 PM
The oil business is just another business. You cant knock them for making money. They arent the ones that are the problem anyway. Its all of the taxes that are put on the prive of fuel that we have to pay for. Its not the oil companys fault. It would also help if the tree huggers would let us drill for oil in our own country.

okeefl
03-05-2008, 01:29 PM
Okeele Does't compute. at $3.50 a gal you use $7.00 in fuel for $125 job that equals 5.6% of sales for fuel. so in order to stay at the same rate if fuel is $7.00 your % of fuel expense to sales would double to 11.2% of sales but with your formula of 3%for every $.50 over $4.50 you will increase their price by 15% and your only incurred an extra 5.6% in fuel cost.

You are right when you project out that far or high. The first two increases work out fair, I will need to lower the percentages the farther out it goes...again I hope it does not get to that point.

lawnpro724
03-05-2008, 01:52 PM
Go back and re-read it again. here is an example:

Current gas price is $3.50/ gallon. Customer A gets a monthly invoice of $125.00.

Gas prices jump to $5.00/ gallon this summer. This lawn consumes on average 2 gallons of gas a month for mowers and 2-cycle.

The clause states 3% for every 0.50 cent increase over $4.50 monthly average.

Following me?

That month they get a bill for $125.00 + $3.75 (3%) = $128.75

I used $3.00 more in fuel that month for mower and 2 cycle only for this lawn...that does'nt even include diesel fuel for my truck. I recovered an additional $3.75 for that month.

If the prices fall they don't get a surcharge.

I guess I am reading this different than you, if not please tell me how this is out of line.



I agree with you on the cost to customer for fuel used on there lawn but thats it. Everyone here is missing the point! Sure fuel is going up and its going to cost more to cut someones lawn especially if its a large commercial or residential lawn but the increase in fuel use isn't going to be huge. What everyone is missing is the fact that everything is going up. In the past year our utility bills here in IL have gone up 40% and there looking to increase it another 12% again this year. My shop labor has increased $20 an hr in 2 years and insurance has also increased and for those of you who are Clinton or Obama fans, if they win your going to be paying a hell of a lot more in taxes than you do now. For those of you with small children what about the price of milk? Just about a year or so ago milk was $1.99 a gallon and now its over $4 a gallon. Everything we use in our daily lives is going up, its seems that everything we use or need is going up faster than gas prices. Why? The cost of fuel, it cost more to make, deliver, and ship around the world. So for those of you who complain about the cost of fuel, your right! The increase to a customer shouldn't be a fuel increase, it should be a COST OF LIVING increase.

okeefl
03-05-2008, 02:06 PM
The increase to a customer shouldn't be a fuel increase, it should be a COST OF LIVING increase.

That was built into the regular prices increase. I was trying to create some type of safety net should fuel prices get extreme. I have priced to cover any reasonable increase in fuel prices.

I guess I am looking at from a gloom and doom perspective.

I'm done.

qualitylandscaping
03-05-2008, 05:09 PM
Paid $4.11 for ULS Diesel today...... ;)

87 is around $3.40


Someone in this country needs to stand up and put an end to this.. It's purely fear driven inflation.. Nothing more..

topsites
03-05-2008, 05:19 PM
What I feel is being missed here is that fuel prices are going to be extreme, and sooner than we think, that is why I'm so frustrated, and not with the price of fuel per se.

Because I get this crap all the time from cheapo customers...
It's all the same thing, don't you get tired of hearing it?
I do!
And you know what I do when I get tired of hearing it?
Seriously, I RAISE my prices!
I raise them until the whining stops cold!
Yes sir, 30 an hour too much, fine, lets try 60.
That still too much?
Fine, how about 120, no? Ok, 240!
And just keep going UP until it stops, soon the price is SO high they just stand there like a headlighted deer.
But finally, finally I can leave because the complaining and the whole conversation is Over!

So my only question is, how HIGH do WE have to send the price of fuel?
What is it going to take to stop the complaining?

............
Because for change to happen, for anything at all to happen EVERYBODY has to play the stupid game, we can not afford to sit around complaining about the price when we're not doing anything about it! And for that to happen first research must be done, into things such as how can I reduce my cost!

Or you can do nothing, and pay someone else to do the research, but pay you will!

So, either raise your prices sky high AND pay the oil co's so they in turn can pay for research...
OR do your own research and help along and then fuel costs less for you!

Because these threads, this has been on-going since fuel was a dollar a gallon and likely before that!
So what is the problem, is it just $3.50 a gallon?
No, I see the problem as folks who complain are doing so because their cost is too high and OR their prices too low!
And if someone's not doing anything about it, then to me that someone is part of the problem.

TPLawnPro
03-05-2008, 05:48 PM
The greedy are choking the economy.

http://cagle.com/news/Exxon/images/tab.gif