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tiedeman
01-23-2004, 09:02 PM
Well, prices went up here at $1.74 a gallon today. I was wondering what everybody is going to do or have planned for when prices hit $2 to $3 this summer?

Raise prices on customers, stick to your price and just ride it out, step out of the business, etc.?

packerbacker
01-23-2004, 09:04 PM
Since ive been in business gas has gone up here in KC ony about 40 cents . Most of the time it fluxuates abtou 10-15 cents for a few weeks a couple times a year. I seriously doubt it will go above 1.80 a gallon. But in answer to your question i have raised prices before because of gas.

lawnman_scott
01-23-2004, 09:06 PM
If it takes less than a gallon to mow the lawn, and im sure it will, dont worry be happy

Zach76
01-23-2004, 09:06 PM
Everybody except mom n dad is going up $5 this year. I only plan on raising prices every 2 or 3 years for existing customers, so $5 isn't much for most of my clients. Ends up being 3 or 4 % per year overall, and that barely keeps up with inflation.

alpine692003
01-23-2004, 09:27 PM
wow you guys have it lucky..

It costs 78.9 cents a litre right now for us!

3.78l = 1 gallon
78.9 x 3.78 = 2.98

Barkleymut
01-23-2004, 10:28 PM
Originally posted by tiedeman
Well, prices went up here at $1.74 a gallon today. I was wondering what everybody is going to do or have planned for when prices hit $2 to $3 this summer?

Raise prices on customers, stick to your price and just ride it out, step out of the business, etc.?


What in the world makes you think prices will hit $2-$3/gallon? I think the media is getting into your head. If the prices here hit $3/gallon in the summer of '04 I will personally drink 5 gallons live on the web for your amusement.

NCSULandscaper
01-23-2004, 10:35 PM
Originally posted by Barkleymut
What in the world makes you think prices will hit $2-$3/gallon? I think the media is getting into your head. If the prices here hit $3/gallon in the summer of '04 I will personally drink 5 gallons live on the web for your amusement.

Better get ready to drink then. This is what the gas companies have been trying to do for years, get the prices way up for their greedy pockets. They are finally coming up with some good excuses to raise prices and its going to be bad in the next few years.

Barkleymut
01-23-2004, 10:57 PM
They have been saying the same old crap for years. As for greedy pockets, if the prices for gas had gone up the same as home or car prices we would be paying $10/gallon. There is more than enough oil to go around. We have so many sources that even if the majority of the middle east shut down operations the only blip in delivery would be the outcry of the media. And the Middle East can't afford to cut us off. They would be even more backwards if they didn't get our money.

ManleyLawn
01-23-2004, 11:02 PM
i have heard it is supposed to go up to 2-3 dollars a gallon... which would suck but i think inorder to keep the customers happy i will most likely keep their prices the same. I can recoup the cost of gas in other ways... if my clients are happy i'm happy and as long as they pay for the services on time i am even happier. :)

NCSULandscaper
01-23-2004, 11:06 PM
Originally posted by Barkleymut
They have been saying the same old crap for years. As for greedy pockets, if the prices for gas had gone up the same as home or car prices we would be paying $10/gallon.


But they are doing something about it. Just a few years ago gas was less than $.90 a gallon. Now its about $1.90 a gallon. They are doing such a slow increase hoping people wont ever notice the small difference. And it will continue to slowly rise. After all you are paying over $1 a gallon in just taxes. the fuel itself costs little to nothing. Its all govt controlled, so you know we are screwed.

Barkleymut
01-23-2004, 11:30 PM
http://www.virginiabeachgasprices.com/tax_info.asp

In Va. we pay 18.1 cents to the state and 18.4 cents to the feds. Thats 36.5 cents per gallon. Don't know where you got over a buck.

As for gas being 1.90/gallon its under 1.50 here. Sure prices were at 90 cents a few years ago. But shortly before that prices were at 1.30.

In 1990 when we kicked Saddams feeble fighting force out of Kuwait prices went to over 1.35. The prices fell after that and held relatively steady until around 1999.

Also if ya'll think this is some new fear then check these out. --->
From 9/2000 http://www.lawnsite.com/showthread.php?threadid=4677&highlight=gas+prices

From 4/2001 http://www.lawnsite.com/showthread.php?threadid=13143&highlight=gas+prices


From 3/2000 http://www.lawnsite.com/showthread.php?threadid=1585&highlight=gas+prices

draftlawncare
01-24-2004, 02:47 AM
congress just pased a bill to start drilling for oil in northern alaska said there there was billions of gallons of oil there cnn news was talking about today maybe know we will not have to be so depented on the middle east for oil and opec playing with the fuel price

tiedeman
01-24-2004, 03:01 AM
How come Barkleymut, that gas prices are 40 to 60 cents higher this time of year compared to last year? And we haven't even hit Memorial Day, Forth of July, and Labor Day prices yet.

Metro Lawn
01-24-2004, 05:14 AM
Most of the reason is this cold spell. Most of the crude oil is being made into heating oil.. that has caused a strain on gasoline.. not a biggie really, but if gas were to go much over $2 a gallon, our economy would come to a screeching halt.. and the government knows this.. they have control...

GarPA
01-24-2004, 07:10 AM
Tideman...you might want to look at the post we had going here yesterday on fuel surcharges...some strong opinions both ways on this topic... seach on titles for fuel as I think there are a couple more out there in the archives...personally if I thought projecting $2 would cover it, I would just build that into the prices and not have a fuel clause in the agreement...however, the thread I started was more about cost spikes that may be as high as $3 or greater...it may just be media hype like the flu season, but if it isn't, then we each handle it the way we think is most fair for all concerned

upsondown
01-24-2004, 08:09 AM
Barkleymut
LawnSite Addict quoted some gas tax information for Virginia - but you must realize that historically - Virginia has some of the lowest taxes on fuel in this region of the country. In the very near future that is going to change - as the big dogs in Richmond are hashing out the the deficit of the commonwealth right now - and one very serious item for consideration is raising the fuel tax. New York has always enjoyed extremely high fuel taxes - and the resulting costs at the pump........ Baby Bush and his side kick are driven by fuel - so don't be blown away when prices continue to escalate. The bottom line is that the increased prices will effect your bottom line - unless consideration is given to these added costs of doing business. As with any business - the costs are always passed on to the consumer - Do you think UPS is going to keep their rates the same and absorb the extra costs? NOT !!!!

DennisF
01-24-2004, 09:44 AM
Originally posted by Barkleymut
What in the world makes you think prices will hit $2-$3/gallon? I think the media is getting into your head. If the prices here hit $3/gallon in the summer of '04 I will personally drink 5 gallons live on the web for your amusement.


Would you prefer 87, 89 or 93 octane sir?

Barkleymut
01-24-2004, 10:00 AM
5 gallons of your choosing. July 1st I will take a pic of a local gas station and their prices. Once again I will be right. If the price is over 2.99/gallon I'll drink. But I'll bet near anything it is under 2.00/gallon.

The flu is gonna kill us all. Well that is what I heard. Still haven't even gotten sick.

brucec32
01-24-2004, 03:12 PM
Originally posted by NCSULandscaper
Better get ready to drink then. This is what the gas companies have been trying to do for years, get the prices way up for their greedy pockets. They are finally coming up with some good excuses to raise prices and its going to be bad in the next few years.

"greedy" . What is that exactly?

Are you saying that someone has an obligation to sell you something at the price YOU want to pay?

It's called supply and demand. If you don't like it go buy your own well and refinery and risk your investment and make your own fuel.

Fuel prices are amazingly low here compared to the rest of the world and compared to historical levels after adjustment for inflation.

Companies can't use "excuses" to raise prices. There's a free market out there, a worldwide market, and if someone raised prices above true market level someone else would just step in and take over their share of the market.

Quit buying into the propaganda. Are you "greedy" if you want to make more than the bare minimum you can live on mowing lawns?

Where did this "entitlement" mentality come from in America today? It's not like they're selling jugs of water for $100 after a natural disaster.

NCSULandscaper
01-24-2004, 03:57 PM
Originally posted by brucec32
"greedy" . What is that exactly?

Are you saying that someone has an obligation to sell you something at the price YOU want to pay?

It's called supply and demand. If you don't like it go buy your own well and refinery and risk your investment and make your own fuel.

Fuel prices are amazingly low here compared to the rest of the world and compared to historical levels after adjustment for inflation.

Companies can't use "excuses" to raise prices. There's a free market out there, a worldwide market, and if someone raised prices above true market level someone else would just step in and take over their share of the market.

Quit buying into the propaganda. Are you "greedy" if you want to make more than the bare minimum you can live on mowing lawns?

Where did this "entitlement" mentality come from in America today? It's not like they're selling jugs of water for $100 after a natural disaster.

Yes it is all about greed. Since the prices are mainly set by OPEC, which controls about 40% of the oil export in the world and owns 3/4 of the oil reserve. Then you have all the activists who dont want us to tap our own oil reserves cause it may harm the environment, which throws the price up even more, and the fact that it just happens to be a coincidence that the prices at every single gas staion go up at the same exact time, and they raise the price for the gas thats already in their tank. Its all about getting more money. And yes anyone thats govt funded and basically govt run can make any excuse they want to raise prices on items, who is going to argue with them. And since they know we HAVE to have gas in order to survive in this world makes it even worse on the consumer. They can charge whatever they want and know we will still pay it because in the end its all one big monopoly.

"It's not like they're selling jugs of water for $100 after a natural disaster"

Thats what you think. how many disaters have you gone through? Ive been through plenty and you see people selling water for $20 a gallon and ice for $10 a bag. What do you call that? GREEDY

NCSULandscaper
01-24-2004, 03:59 PM
Originally posted by Barkleymut
5 gallons of your choosing. July 1st I will take a pic of a local gas station and their prices. Once again I will be right. If the price is over 2.99/gallon I'll drink. But I'll bet near anything it is under 2.00/gallon.

The flu is gonna kill us all. Well that is what I heard. Still haven't even gotten sick.

Just because it hasnt happened yet doesnt mean it wont.

craigs lawncare
01-24-2004, 04:14 PM
Originally posted by Barkleymut
What in the world makes you think prices will hit $2-$3/gallon? I think the media is getting into your head. If the prices here hit $3/gallon in the summer of '04 I will personally drink 5 gallons live on the web for your amusement.

That would be interesting. :D

There are just to many variables to predict whether gas is going to get above $2 or $3 per gallon. Last year I thought for sure it would, but it never did. At least not in Michigan.

I simply set my-self up with an insurance policy that I have been doing since 9/11.
At the beginning of every summer I tell my customers that if gas gets over a certain price per gallon than I will raise my price $5 per cut. If the price per gallon drops back down, so do my prices. Simple.
It's fair for both me and my customers.

Craig

Mac V2.0
01-24-2004, 05:58 PM
Even if it does get over $2 per gallon, its not a life threatening thing. At .75 gal per hour that my mowers use, thats an increase of $.3 per hour. Are you really gona charge your clients an extra $.60 per month just cus it 'appears' all your profit is gona be sucked up by gas prices? If $.3 per hour increase in expenses is gona sink you, then you have bigger problems.

Barkleymut
01-24-2004, 09:26 PM
By NCSU Turfpacker= "Thats what you think. how many disaters have you gone through? Ive been through plenty and you see people selling water for $20 a gallon and ice for $10 a bag. What do you call that? GREEDY"

After Isabel people here were selling gallons of water for $8. Everyone was screaming price gouging. The fact was they had supply and there was a huge demand. The city was 95% out of power and the pumping stations that were left just couldn't put out any water. And then you were supposed to boil it before you cooked anything. I say more power to them. In NYC there are hotels that sell bottled water for $5 for 20 oz. That is some expensive stuff but you DO have a choice. Here in Richmond we could have driven west for 70 miles and bought all the H20 we wanted for 50 cents per gallon but we were not going to waste 10 gallons of gas to do so. Simple supply and demand and a few folks being opportunistic.

By the way, ever go into the 7-11 and buy a 20oz. Dasani for $1??? That is just over $6 per gallon. You just gouged yourself.

NCSULandscaper
01-24-2004, 09:41 PM
By Barking Mut= "By the way, ever go into the 7-11 and buy a 20oz. Dasani for $1??? That is just over $6 per gallon. You just gouged yourself."

Sorry bud but i have better sense than to buy that water, i get it for free at home and tastes just as good. I guess we will just have to agree to disagree on this issue. I respect your opinion, but its not enough to change mine. PM me and we can discuss this more if you are up to it.

Barkleymut
01-24-2004, 09:52 PM
I agree that we will never agree on this subject.

I'm with ya on bottled water. I have a buddy who drinks at least $10/day of it. I swear he's nuts.

BTW- the ol Wolfpack got a big win today.

fishnetman
01-24-2004, 10:20 PM
price here in RI 199.9 for super now that's unusualy high for winter

Grassmechanic
01-24-2004, 11:09 PM
Originally posted by brucec32
[B
Fuel prices are amazingly low here compared to the rest of the world and compared to historical levels after adjustment for inflation.

Actually, all the other countries pay approximately the same price for crude oil. They just prefer to tax the daylights out of a gallon of gas.

Woody82986
01-25-2004, 12:56 AM
Let me solve the rise in gas prices with one word. "Inflation" and it is inevitable. You know, gas goes up just like car prices do, and meat, and houses, and almost anything else you can buy. But it won't go up to $3.00 per gallon by this summer. Before I die it will, but not in 6 months.

bizkit04
01-25-2004, 12:59 AM
Not too worried about prices going much higher, worse comes to worse, I would just send a letter explaining the situation and ask for x amount more per cut or whatever.. When prices went up for a while 2 years ago i had one customer give me an extra 5 bux per cut.. from 25 to 30... just my 2 cents..

mtdman
01-25-2004, 03:48 AM
First off, gas and oil prices are not determined by supply and demand. After OPEC and the taxes, both State and Federal, and this new gas formulation bs, prices are no where near a true supply and demand price.

Secondly, it's not just the gas my mowers and equipment use, it's the truck and travel use as well. If gas prices go beyond $3 per gallon, that will double my costs from last year, and directly eat into my profits. No, it won't break me, but I'm not going to eat those expenses. Why should I? Most other businesses don't. And if I eat the expenses and don't pass them on to my consumer, my consumer doesn't feel the pinch of the increased gas prices like I do. The more they understand that, the more they will be upset with gas prices. The more the average consumer is upset with gas prices, the more the demand that we drill our own oil and move to alternative fuels will be heard.

Third, as I understand it, there are like 3 gas refineries in the US. A lot of the seasonal gas increases come from the reformulation that is now required for gas in the summer. Depending on your air quality, the gas sold in your area has to be reformulated for fewer emissions and smog. And every reformulation is different. So those 3 refineries have to do all that work, which adds to the gas prices. If we built a few more refineries which would process the gas quicker, we wouldn't feel the season increases so much.

Lastly, I'm putting my gas clause in this year. I'm not going to eat that gas increase on my own.

:D

SHOW ME STATE RIDER
01-25-2004, 03:53 AM
What are you guys going to raise each customer? $2 or $3,$4,$5
I'm thinking about 3 each yard.

mtdman
01-25-2004, 04:15 AM
I was thinking $1 at $2/gallon, an additional $1 for each $1/gallon after that. That might be too steep, though. I have to run the numbers.

GarPA
01-25-2004, 05:16 AM
if at all, we only pass on the pro rata portion of the increase, times the amount of fuel allocated to that account per month.
We know exactly the fuel usage is, per account, per month, including the vehicles.

For ex: if Account A uses 10 gal a month, and we go from $2 to $3, the fuel adjustment for that month is $10. No profit is taken from the surcharge

craigs lawncare
01-25-2004, 10:31 AM
Originally posted by mtdmaster
First off, gas and oil prices are not determined by supply and demand. After OPEC and the taxes, both State and Federal, and this new gas formulation bs, prices are no where near a true supply and demand price.

Secondly, it's not just the gas my mowers and equipment use, it's the truck and travel use as well. If gas prices go beyond $3 per gallon, that will double my costs from last year, and directly eat into my profits. No, it won't break me, but I'm not going to eat those expenses. Why should I? Most other businesses don't. And if I eat the expenses and don't pass them on to my consumer, my consumer doesn't feel the pinch of the increased gas prices like I do. The more they understand that, the more they will be upset with gas prices. The more the average consumer is upset with gas prices, the more the demand that we drill our own oil and move to alternative fuels will be heard.

Third, as I understand it, there are like 3 gas refineries in the US. A lot of the seasonal gas increases come from the reformulation that is now required for gas in the summer. Depending on your air quality, the gas sold in your area has to be reformulated for fewer emissions and smog. And every reformulation is different. So those 3 refineries have to do all that work, which adds to the gas prices. If we built a few more refineries which would process the gas quicker, we wouldn't feel the season increases so much.

Lastly, I'm putting my gas clause in this year. I'm not going to eat that gas increase on my own.

:D

Well said MTDmaster, there is more to figure than just what gas is used in our equipment. Remember, your truck uses gas as well. Plus, increasing gas prices have an indirect affect on what ever else you purchase for your equipment.
Like I said earlier in this thread. I make my customers aware at the beginning of the mowing season that if gas prices surge over xyz per gallon, than I will increase my prices a set amount.
On the other hand, if gas prices dip back down below the set price, their weekly rate will return to the original price as well. This is fair for everyone and lets the customer know you are not just looking for a way to gouge them.
I have my increase set at $5 per cut on all of my yards.
If your customer has a very small yard, I would drop that figure.
My customers have always been OK with this, but I have never had to use it either.

Craig

Barkleymut
03-16-2004, 11:50 AM
Just had to bring this fun fun thread back up. I paid 1.49 yesterday. So the price has stayed the same since January. But I guess you guys are right. The price is going to more than double from now till this summer. I hope that ya'll are smarter than you appear on this thread.

timinkc
03-16-2004, 11:59 AM
It's just too bad we can't invade and take over some small country with lot of oil.....oh......wait a minute.....

NCSULandscaper
03-16-2004, 12:52 PM
Price has gone up 15 cents per gallon in the last 2 weeks to a $1.75 a gallon here.

Mdirrigation
03-16-2004, 01:36 PM
The rising cost of fuel has to be looked at in a bigger picture . You will be paying more for food , farmers burn fuel to plant and harvest, truckers who deliver goods burn fuel, Electricity may be coal , nuclear or oil fired , all have transportation costs assoicated with them. Heat for your home ,and the list goes on.

Every business around you will be raising their prices and passing it on to the end user , If you dont raise yours you are not just losing the difference in dirrect fuel prices, but your overall profit and standard of living could or will decrease due to the increase in other goods and services you purchace. It wont be noticable at first , 2 or 3 dollars here and there but it will add up. Along with inflation and the rising cost of real estate your purchacing power will a lot less.

.

Barkleymut
05-04-2004, 10:16 AM
Paid 1.60 today. God I love being right!

N4PSN
05-04-2004, 11:14 AM
Gas prices are $1.90 per gal. here is Oconee County now. This is the reason I run a diesel. I don't have but 8 accounts but I can fill up before I leave and mow all 8 yards on a 5gal. tank full.
The new 4-mix Stihl FS-110 weedeater I bought this year I can trim 6 of the 8 yards on one tank full. Yes the Stihl FS-110 will cost you $400.00 but it is worth it.
For what it's worth.
L&L Lawn Care

upsondown
05-04-2004, 11:48 AM
Originally posted by Barkleymut
Paid 1.60 today. God I love being right!


Just paid $1.75 a gallon - and I'm in Virginia too.........

twins_lawn_care
05-04-2004, 11:56 AM
near about $1.95 here in Chicago
you can almost feel the suction out of your wallet as you fill up :angry:

tiedeman
05-04-2004, 05:41 PM
just jumped from $1.89 today to $1.97

NCSULandscaper
05-04-2004, 06:05 PM
jumped from 1.73 to 1.80 today

Barkleymut
07-02-2004, 12:01 AM
By Barkleymut
"5 gallons of your choosing. July 1st I will take a pic of a local gas station and their prices. Once again I will be right. If the price is over 2.99/gallon I'll drink. But I'll bet near anything it is under 2.00/gallon."

Well well well, seems as if once again I am right and all ya'll are way wrong. Time to stop listening to Brokaw and Jennings and start listening to the all knowing Barkleymut.

Do I really need to post the pic???? I think I just might so I can revel in my own superiority. By the way $1.69 here today. Only 56% of the 3 bucks ya'll said it would be.

"Lord its hard to be humble when your perfect in every way" -some song I heard, but man it always seems to fit me and none of you who doubted me. Go ahead and admit your faults now and sign up for my superiority classes now being held at www.I'mrightyourwronggaswillnotbe3.00pergalloninthenext10years.com