Surcharges for gas prices

[Ocutter]

I asked about this topic last summer and wanted to ask again. Now that you know gas prices are going to go up will you add in your contracts and agreements a surcharge if gas goes beyond a certain price. I have raised my prices to accomodate up to $1.55, (its now $1.33 here). I can always adjust landscaping prices a little, but what about you guys and gals that rely only on lawn cutting.

[Michael Fronczak]

I figured it out last fall for snowplowing, with the amount of gas I went throught (20 gal) per trip, the increase cost me an additionl $ 150 through season, divided by all contracts I would have had to raise seasonal prices by somthing like .5 % to account for that(nothing), I normally raise my prices every year anyway so it didn't matter. I would assume roughly same percentage for lawn work, I also raise that so I don't worry about it.

[Richard Martin]

I average 92 cents in fuel and oil per lawn cut and that includes 2 cycle oil and oil changes on the mowers. My average price paid for gas was 1.539 this year. My average service is $33.35. Even if gas were to go up a dollar a gallon it still wouldn't cost me 50 cents more per lawn. I cannot justify using the price of gas as a way to charge a surcharge. If gas goes up 20 cents what am you going to do? Charge them a 8 cent surcharge? You simply treat increasing gas costs as you would any other cost associated with any business. I raised prices on almost 50% of my customers this year by 5 dollars a cut. That should cover any increases in gas costs. In fact, the additional money received as a result of the increase will pay for the entire year's gas and oil cost.

[powerreel]

SMART!!!

[bob]

Last year, Chem-Lawn added a $1 fuel sur-charge on every visit they made.

[kutnkru]

We have always figured our pricing based on fuel consumption at dollar-79 per gallon. I dont think I will be adjusting them for a while, regardless.

Kris

[gusbuster]

If I was able to guess how much gasoline will cost 3 months from now, I sure wouldn't be a L.C.O..:)Your operating cost most often always go up,not down. The best way is a general price increase all accross the board. Don't use gas as an excuse. Use your operating cost as a reason to raise prices. How much, it's very rare to loose a client if you only raise your price up a $1 per cut if you use that system, or $3 to $5 for a monthly billing system.
John

[1st impressions]

When gas hit $2.25 a gallon last summer I put a surcharge
on my maintenance accounts that lasted approx. 2 months.
Only 2 customers balked. I don't use contracts so maybe
it was easier for me to do.
This year I'm just going to raise my seasonal rates to reflect where I think prices are going to go. If they climb over $2.00 a gallon again I will consider imposing the surcharge again.
I work hard for my money. I am just not willing to eat an
extra .75 a gallon. Many other industries saw no ploblem
imposing a temp. hike. I know the airlines and U.P.S. did.
People understand.

[MOW ED]

No surcharge but rate increases for multiple reasons, along with gas , insurance, maintenance, advertising, parts, new equipment and oh ya I forgot to mention - PROFIT.

None of the above have come down except profit, we will change that this year or I'll have more free time.

[awm]

Around here going up is tough with competition
and such.But they all fussing about gas prices
so if i ad 5 to lawn chg,they just blame it
on the gas company AND I FUSS RIGHT ALONG WITHUM
BAD BAD GAS COMPANY.