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Contract question

Discussion in 'Lawn Mowing' started by nobagger, Mar 4, 2005.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Do any of you (that actually use contracts) ever put in a fuel stipulation, that if fuel prices jump up roughly a couple of bucks or more that their price would increse also by a certain %
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I used to do it, but no longer. I have a few reasons why
  3. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I did it last year. Not a single complaint from any of my customers. I guess they understood...I was surprised. I plan on doing it again this year.
  4. j fisher

    j fisher LawnSite Senior Member
    Posts: 296

    NO. here's why. If fuel prices actually DROP. are you going to lower there price? Fuel prices fluctuate. This should be taken into consideration when you bid the property to start with.
  5. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I see your point...but you know what...if the price of gas ever drops to dollar a gallon again, then yes I would refund a very small amount since I currently base my costs from gas between 1.75 and 2.00.
  6. Freshcut Lawn Care

    Freshcut Lawn Care LawnSite Senior Member
    Posts: 393

    Good point J Fisher!

    Although I don't expect them to drop much if at all!

    To answer the original question, I don't but might consider it! :p
  7. mowerman90

    mowerman90 LawnSite Bronze Member
    Posts: 1,491

    The best way is to just raise your prices by a couple of dollars per cut. But, if you just recently did that, then you could add a "fuel surcharge". I started doing that back in July. No complaints from any of my 70 odd customers. When the price of gas went back down 2 months ago I eliminated the surcharge. Of course everyone was glad to see that but it went back up so I reinstituted it again and no complaints. My "trigger point" is $1.75 per gal.
  8. chriscampbell

    chriscampbell LawnSite Member
    Posts: 44

    One of the LCO's does that around me and I picked up a few customers from him for it. He charged them the extra few bucks and I tell them that the cost is all included. It helps as a selling point when you are still building a route. But if you have had customers for a few years I can see how they would not mind. my 2 cents
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    that is one of the many reasons I removed mine
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I figure that I already have the gas price increase for the year figured into customers prices

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