Register free!


Reply
 
Thread Tools   Display Modes
  #1  
Old 03-22-2010, 10:13 AM
DVS Hardscaper's Avatar
DVS Hardscaper DVS Hardscaper is online now
LawnSite Fanatic
 
Join Date: Aug 2005
Location: County Jail
Posts: 5,920
Fuel $$$$ are rising - Fuel Surcharges

In 2008 diesel fuel hit $5.00 per gallon here in our area. Five bucks per gallon for trucks that get 7-10 miles to the gallon is a little painful.

So much stuff going on in the industry - recession, competitors working for pennies on the square foot, etc.

In 2008 I absorbed the outlandish fuel costs.

But this year I'm thinking of adding another clause to our contracts, something along the lines of (the wording needs fine tuning):
"In the event the National average for diesel fuel and or gasoline reaches $3.50 or more per gallon - a fuel surcharge of $250.00 will be added to the proposed job cost...."


FOLKS -keep in mind - fuel costs go further than our trucks and skid steers. Suppliers tack on fuel surcharges as well. IT ADDS UP. Factor in your direct fuel costs (trucks, loaders, saws, tampers, etc) and factor in the fuel surcharges your suppliers will hit you with......ALL THAT ADDS UP, in an already cut-thorat market!

Anyone do fuel surcharges? Or thinking about fuel surcharges?




,
__________________
"It's You vs. You"

"People Throw Rocks At Things That Shine"


My Equipment Brag List:

-1 CAT hat
-16 pairs of Hanes socks (the Heavy Duty model), many with holes.
-12 pairs of underwear, ranging from Joe Boxers to Jockey, many are in need of replacement. (no more photo requests please)
-hundreds of t-shirts. Some w/ grease stains, some torn & tattered.
-7 pairs of jeans, ranging from Levis to Polo to GAP. 1/2 of them have holes in 'em.
-1 belt
-1 pair of old worn out Nike shoes.
Reply With Quote
  #2  
Old 03-22-2010, 10:35 AM
brickpuller brickpuller is offline
Sponsor
 
Join Date: Feb 2010
Location: LaGrange, IL
Posts: 62
It's almost impossible to charge on hardscaping unless you add it to delivery of the pavers. I have never had any luck adding $250 to a $25,000 job after it is signed. I would add it to your prices ahead of time and sell a little harder while explaining your costs. Most of the guys working for pennies do so becuase they have no insurance or overhead, of course you already know that. The customers that hire these people are the customers that none of use want. All they care about is price. In 2008 my fuel cost went up about $70,000 and I had a really hard time recovering. In 2009 I added $100-$300 to each estimate. If you have X amount of job, make a quess and add X amount of dollars to each job.
__________________
Hardscape contractor www.prairiepathgroup.com
EZ Paver Puller/Mixer J&M Tools www.brickpuller.com
Reply With Quote
  #3  
Old 03-22-2010, 02:12 PM
tthomass's Avatar
tthomass tthomass is offline
LawnSite Gold Member
 
Join Date: Jun 2006
Location: N. VA
Posts: 3,448
So you're on a project for two weeks, fuel goes up in the middle of the project and you're going to bill them another $250. I think most people would take it wrong. If I price a job at $25k, I can easily slip another $100 in there. I need to concentrate more on production than a few dollars of fuel. I forget a tool or skip something.....I just lost a lot more than fuel.
Reply With Quote
  #4  
Old 03-22-2010, 03:37 PM
Rex Mann's Avatar
Rex Mann Rex Mann is offline
LawnSite Senior Member
 
Join Date: Nov 2000
Location: Phoenix, Arizona
Posts: 621
Does not seem practical to me. If you are at $3.50 a gallon and it goes to $4.00, then you are charging a flat fee of 250.00, which is 500 gallons. As a client I would be apprehensive about that clause.

I would build it into the price.

Peace,

Rex

PaverExperts.Com
__________________
Rex Mann
Pavers Installed Company
http://PaversInstalled.Com
Reply With Quote
  #5  
Old 03-22-2010, 05:33 PM
DVS Hardscaper's Avatar
DVS Hardscaper DVS Hardscaper is online now
LawnSite Fanatic
 
Join Date: Aug 2005
Location: County Jail
Posts: 5,920
Letz not get carried away with numbers I stated. Those numbers were intended as an example of the principle of the idea. Being this is the world wide web, do you really think I am going to post true numbers when it comes to rates?

Again - for those that did not read my award winning opening post - Keep in mind suppliers are known for tacking of fuel surcharges.

So even though you may only use a grand total of 65 gallons direct for the job - your paver supplier may be taking on a fuel surcharge, and the trucking company that brings your aggregate from the quarry may be tacking on a fuel surcharge.

What we NEED to remember is fuel costs goes further than the fuel we buy and put in our vehicles and equipment. I remember about 2 years ago on another forum a guy with a large mowing business was writing about fuel surcharges. And he made stated "what's hurting us is the surcharge that our suppliers are charging us...."

At the end of 2008 I had an internal way of recovering the fuel surcharges and higher fuel expenses, something I implemented after the costs started coming down. I'm just curious about other's thoughts and experiences.




,
__________________
"It's You vs. You"

"People Throw Rocks At Things That Shine"


My Equipment Brag List:

-1 CAT hat
-16 pairs of Hanes socks (the Heavy Duty model), many with holes.
-12 pairs of underwear, ranging from Joe Boxers to Jockey, many are in need of replacement. (no more photo requests please)
-hundreds of t-shirts. Some w/ grease stains, some torn & tattered.
-7 pairs of jeans, ranging from Levis to Polo to GAP. 1/2 of them have holes in 'em.
-1 belt
-1 pair of old worn out Nike shoes.
Reply With Quote
  #6  
Old 03-22-2010, 06:56 PM
tthomass's Avatar
tthomass tthomass is offline
LawnSite Gold Member
 
Join Date: Jun 2006
Location: N. VA
Posts: 3,448
Did you know you can deduct the road tax for off road use!! Shhhhh, keep it secret haha. For the heck of it, I'd be curious to see how much people are deducting for that.
Reply With Quote
  #7  
Old 03-22-2010, 08:18 PM
DVS Hardscaper's Avatar
DVS Hardscaper DVS Hardscaper is online now
LawnSite Fanatic
 
Join Date: Aug 2005
Location: County Jail
Posts: 5,920
I have created a kickass spread sheet that tracks our off road gas and diesel purchases for the calander year
__________________
"It's You vs. You"

"People Throw Rocks At Things That Shine"


My Equipment Brag List:

-1 CAT hat
-16 pairs of Hanes socks (the Heavy Duty model), many with holes.
-12 pairs of underwear, ranging from Joe Boxers to Jockey, many are in need of replacement. (no more photo requests please)
-hundreds of t-shirts. Some w/ grease stains, some torn & tattered.
-7 pairs of jeans, ranging from Levis to Polo to GAP. 1/2 of them have holes in 'em.
-1 belt
-1 pair of old worn out Nike shoes.
Reply With Quote
  #8  
Old 03-22-2010, 09:55 PM
tthomass's Avatar
tthomass tthomass is offline
LawnSite Gold Member
 
Join Date: Jun 2006
Location: N. VA
Posts: 3,448
You should teach Excel.....Mr. Wizard
Reply With Quote
  #9  
Old 03-22-2010, 10:26 PM
DVS Hardscaper's Avatar
DVS Hardscaper DVS Hardscaper is online now
LawnSite Fanatic
 
Join Date: Aug 2005
Location: County Jail
Posts: 5,920
Quote:
Originally Posted by tthomass View Post
You should teach Excel.....Mr. Wizard

I think I just may do that.



,
__________________
"It's You vs. You"

"People Throw Rocks At Things That Shine"


My Equipment Brag List:

-1 CAT hat
-16 pairs of Hanes socks (the Heavy Duty model), many with holes.
-12 pairs of underwear, ranging from Joe Boxers to Jockey, many are in need of replacement. (no more photo requests please)
-hundreds of t-shirts. Some w/ grease stains, some torn & tattered.
-7 pairs of jeans, ranging from Levis to Polo to GAP. 1/2 of them have holes in 'em.
-1 belt
-1 pair of old worn out Nike shoes.
Reply With Quote
  #10  
Old 03-23-2010, 12:10 AM
tthomass's Avatar
tthomass tthomass is offline
LawnSite Gold Member
 
Join Date: Jun 2006
Location: N. VA
Posts: 3,448
I'd pay but you better get a lot done quick because my attention span is shot.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump






Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 08:32 PM.

Page generated in 0.09490 seconds with 7 queries