Originally Posted by DennisF
The rising price of gas is not only affecting the fuel cost per hour for mowing, it is also affecting prices for replacement parts (blades, belts, tires, filters, etc.) so I factored in those costs as well when I raised prices in February.
To make a point, I just placed an order with J-Thomas for a number of items that I'll need for this mowing season. Things like blades, deck belts, cannister air filters, oil filters, trimmer line...all the items that I will need for the season. It is the exact same order that I placed last year at this time. The total price for the order has increase by 21% since last year for the same parts.
This increase in cost has to be recovered just to maintain the same level of profit as last year.
One other thing. I was at the dealer the other day and I noticed that they increased their hourly labor rate to $74 per hour. Last year it was $68 per hour. Not a big deal if you service your own equipment, but it indicates that everyones costs are rising and those costs are being passed on to consumers.
It's a form of inflation yes. Everyone is feeling it. Swift Transportation just up-ed their fuel surcharge. Not much you can do about it in a fuel based business except tighten that route, and use the most fuel efficent stuff possible. I visted the Greasel site the other day and they are swamped by people looking to get around the fuel problem. The cost of electric is still not practical yet. I can't believe that more companies aren't toying with it. I've seen a few greens mowers that are electric and that makes sense on triplexes. Last thing you want is fuel leaking onto a green or a tee.