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Anyone charging a Fuel Surcharge Yet?

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

  1. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    same here. the only increase that i need to make adjustments for this season is the actual cost i pay at the pump per gallon. thats why chose a fuel charge instead of raising prices. if fuel doesn't reach the $4 a gallon mark or eventually falls back below that the fuel charge will disappear.

    i have sympathy for my clients and my number 1 reason for doing this business is not the profit.

    everything is going up for everyone. some people have lost there jobs or had there hours cut. others are on fixed incomes.

    if you have read the other price raising/fuel charge threads you'd notice that i'm willing to cut back my spending on say going out to eat, to the movies, to the bar, entertainment wants to have the extra money to eat the cost of fuel or at least some of it.

    america as whole has had to cut back on spending. people are cutting out the luxuries in life. so why should we expect to still have those luxuries? as i've said before if you are struggling to afford the needs (heat, water, etc.) in life then yes raise prices.

    but i personally will not raise prices just because i find myself not being able to go out to eat as much or go the movies as often. i won't be raising prices so i can get that motorcycle i've always wanted or have that pool put in my back yard.

    we don't need to debate it because it's been debated to much already. but i personally take care of my needs and thats my concern. if i need to cut back on my wants, thats something i personally am willing to do. i go out to eat less, i don't go to the bar as often.
  2. RBatten

    RBatten LawnSite Member
    from FL
    Posts: 101

    Exactly. I could eat the difference but that would come straight off the bottom line. If you are running a business and not working on the truck you as the owner are the last one to get paid. I am the last one to get paid and I personally would be the one paying for the added costs. That is what I did two years ago and it wasn't fun. Fuel was up more than 40% and my pay was down the same amount. I am not going to work for free or for less than what I pay the crew guys. I have to make sure there is money in the bank for unexpected expenses, fund projects, and the many other items that are unbudgeted.
  3. rreyn1812

    rreyn1812 LawnSite Senior Member
    Posts: 444

    I've been doing the same, with the same results (no complaints), but I also told my customers that when it goes over $4/gal, then I will add another $1 per mowing.
  4. krackerjack9

    krackerjack9 LawnSite Member
    Posts: 55

    Right now at the company I work for were adding $100 per truck anything over 40 miles and $55.00 per hour standby time. we got a job coming up and the fuel charge is going to be right at $200.00 per truck. but they want to build a house about 80miles in the middle of no where. And from the main road its another 12 miles down a ranch road to the site.
  5. GreenscapesWV

    GreenscapesWV LawnSite Member
    Posts: 65

    when gas went over $2.89 i added $5.00 to each lawn, now that gas exceeded $4.00 for reg unleaded i am starting to add a fuel surccharge of $1.50 per stop. went up on my mulch from 90 per yd installed to $95 installed. Also went up on hourly rate from $50 to $52. Also switched trucks went from 9mpg 6.9 chevy 2500 hd to 5.7 5 speed 1500 hd at 13 mpg. so overall im making more money than when gas was $2.99 per gal
  6. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    i'm actually the only one to get paid. i'm a solo operation. and i rarely pay myself in the first place. everything i get from clients goes straight into the business accounts.
  7. Yardguy

    Like I said before, if people cant affored a luxury service like lawn care, they should buy a mower and do it themselves. A few extra bucks will not make a difference if they can actually afford it.

    Yes, you are a solo, but guys who have employees are the last to see $$. I agree with some of the stuff you say, but you have to understand there is the other side of the coin which is a company with employees and not a solo.....
  8. rcslawncare

    rcslawncare LawnSite Bronze Member
    Posts: 1,684

    Iv increased by prices a little each year so I dont have to do and tack on extra prices to my bid. It accounts for $4.75 a gallon, so hopefully it wont go over $5.00 this year or everybody will be hurting.
  9. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    and what makes you think i don't see the other side of the coin?

    i've been trying as of lately to make sure what i'm putting down is my opinion and sometimes what applies to my situation.

    although this goes for solo and guys with crews a like. i think to many think nothing of raising prices. maybe it works for them and thats great. but no matter how large i get. i plan to only raise prices as a last resort.

    yes to some lawn care is a luxury and if you can't afford it get a mower and do it yourself. but not everyone who has a lawn service is using it as a luxury service.

    what do you say about all those disabled and all those senior citizens who can't physically do it themselves? thats about 90% of my business. people who are on fixed incomes. people who's cost of living is going up in every way, shape and form, but the amount they are taking in remains the same. for those people a couple bucks does matter when everything is going up a couple bucks.

    a couple bucks per mow means $8 a month, thats $72 (assuming 9 months of mowings) a year.

    i see where most are coming from when they raise prices. but like i said, i feel to many have the casual attitude that raising prices is just part of the business and it's what you do. some also have the attitude that you can't be running a successfull business if your not raising prices every so often.

    i'm not sure who started the argument in the first place. i know all i ever said was that i'm not raising prices. i've decided to cut out some of my entertainment wants to tighten up my budget. meaning i need less to live off of. by now everyone knows i don't mind giving up the bars, movies or going out to eat to keep from raising prices. and i'm not saying everyone should be this way. it would be nice, but to each there own.
  10. Clark Griswold

    Clark Griswold LawnSite Senior Member
    Posts: 554

    In order to pay for your FREE health care!

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