Anyone charging a Fuel Surcharge Yet?

Discussion in 'Lawn Mowing' started by RBatten, Apr 21, 2011.

  1. goodgreen

    goodgreen LawnSite Senior Member
    Posts: 363

    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.
     
  2. RBatten

    RBatten LawnSite Member
    from FL
    Posts: 101

    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.
     
  3. Get Some...

    Get Some... LawnSite Senior Member
    from Kansas
    Posts: 651

    No.
    No plan's to raise any price's....
     
  4. justgeorge

    justgeorge LawnSite Senior Member
    Posts: 352

    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.
     
  5. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Posts: 1,420

    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: Apr 22, 2011
  6. RLS24

    RLS24 LawnSite Bronze Member
    Posts: 1,601

    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..."
     
  7. watatrp

    watatrp LawnSite Senior Member
    Posts: 495

    I include the cost of driving to the customer's property also plus it is a 2 acre property.
     
  8. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    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.
     
  9. watatrp

    watatrp LawnSite Senior Member
    Posts: 495

    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.
     
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,308

    Almost everyone could eat it. but why should you? Did your customers take a pay cut?
     

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