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  #11  
Old 04-21-2011, 10:11 PM
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I sent out a message with my renewals this year that if gas hit $4 there would be a surcharge added. If it goes back down I'll remove it again.
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  #12  
Old 04-21-2011, 10:18 PM
RBatten RBatten is offline
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Thanks for all the feedback. I was thinking of just adding a $5-$10 fuel charge to the bills. I don't want to do the % thing as some of my customers have larger amounts of detail work which doesn't consume large amounts of fuel. They are paying for extra time. I wrote a letter a couple of months ago but didn't mail it out. I think I will include the letter this month and implement the sur charge next month. I know a couple of years ago when gas was $4.25 it hurt real bad and I don't want to go through that again.
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  #13  
Old 04-21-2011, 11:15 PM
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No.
No plan's to raise any price's....
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  #14  
Old 04-22-2011, 12:28 AM
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Quote:
Originally Posted by watatrp View Post
I sent out letters for the season in late February stating that prices for this year were based on $3.50 per gallon. Anything above $3.50 results in a fuel surcharge. I don't have a set amount but just a weekly surcharge that covers just the increase in cost due to fuel only. Example-if I use 3 gallons of fuel to service a customer and gas is $4.00 a gallon, the difference between the prices is 50 cents per gallon. The customer gets a $1.50 fuel surcharge for that week.
How big a lot is it that's taking 3 gallons of gas? I thought about a gas surcharge but even the price difference of $2/gallon vs $4/gallon the amount of gas in the mower per mow is next to nothing. Fortunately I have a very tight route so gas in my truck in next to nothing also.
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  #15  
Old 04-22-2011, 01:23 AM
Dr.NewEarth Dr.NewEarth is offline
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Your gas surcharge should reflect the increase in costs as it effects all of your
business requirements.

Think about it. Include gas for your vehicle, the increased cost of all of your supplies your insurance increase and more. Focus on your big picture, not just a mower.

The trucking company that brings in the fertilizer you use is charging more for shipping, The fertilizer is more expensive. The stores won't take a loss.

Although I love long term contracts....Some-times I think that it's unfortunate that we have to get locked into agreements for long periods of time, with no safety net.

Clients and their agents do break agreements

Last edited by Dr.NewEarth; 04-22-2011 at 01:25 AM. Reason: spelling
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  #16  
Old 04-22-2011, 01:47 AM
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RLS24 RLS24 is offline
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Quote:
Originally Posted by goodgreen View Post
I sent out a message with my renewals this year that if gas hit $4 there would be a surcharge added. If it goes back down I'll remove it again.
I did the exact same thing. Not one complaint. Mine is 8% or something, it works out to like $2.00 on a $25 lawn. Just gotta be careful how you word it in your contract. Mine says "If fuel reaches or exceeds $4.00 per gallon FROM OUR SUPPLIER....." that kinda weeds out the the people who would say "well so and so has it for $3.99..."
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  #17  
Old 04-22-2011, 07:25 AM
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Quote:
Originally Posted by justgeorge View Post
How big a lot is it that's taking 3 gallons of gas? I thought about a gas surcharge but even the price difference of $2/gallon vs $4/gallon the amount of gas in the mower per mow is next to nothing. Fortunately I have a very tight route so gas in my truck in next to nothing also.
I include the cost of driving to the customer's property also plus it is a 2 acre property.
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  #18  
Old 04-22-2011, 07:28 AM
yardguy28 yardguy28 is offline
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Quote:
Originally Posted by watatrp View Post
I sent out letters for the season in late February stating that prices for this year were based on $3.50 per gallon. Anything above $3.50 results in a fuel surcharge. I don't have a set amount but just a weekly surcharge that covers just the increase in cost due to fuel only. Example-if I use 3 gallons of fuel to service a customer and gas is $4.00 a gallon, the difference between the prices is 50 cents per gallon. The customer gets a $1.50 fuel surcharge for that week.
wow no wonder my clients love me.

my fuel surcharge is only $2 for the entire month.

i've found other ways to save money/cut costs. mostly i'm just willing to eat a little bit of the extra expenses.
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  #19  
Old 04-22-2011, 07:35 AM
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watatrp watatrp is offline
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Quote:
Originally Posted by yardguy28 View Post
wow no wonder my clients love me.

my fuel surcharge is only $2 for the entire month.

i've found other ways to save money/cut costs. mostly i'm just willing to eat a little bit of the extra expenses.
I could probably eat the increased cost of fuel too but it's kind of an open ended deal with the way prices are going up. I do try to group my routes so that the increase in cost to drive my truck is shared. I didn't have a price increase this year for cuts so the only increase my customers see is for fuel usage above $3.50 a gallon.
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  #20  
Old 04-22-2011, 07:37 AM
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AI Inc AI Inc is offline
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Almost everyone could eat it. but why should you? Did your customers take a pay cut?
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