Dear Customers

Discussion in 'General Industry Discussions' started by Gene $immons, Sep 1, 2005.

  1. Gene $immons

    Gene $immons LawnSite Bronze Member
    Posts: 1,028

    Any comments or improvements on the wording??

    Dear customers,

    I have included a $5.00 fuel surcharge on this months invoice. As gas prices continue to climb higher and higher, I must pass along the added expense. Even with the surcharge, I am still taking a loss on my costs.

    Please understand that this is a temporary fee. Once gas prices are lowered, I'll remove the fee.

    Thank you.
  2. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558


    ya know everyone says charge more add a gas fee why....???? lets say you are working at the grocery, a dept store, homo cheapo, lowes, airport etc etc..... has anyone had thier boss come to them and say "hey billy since gas prices are going up we are going to give you an additional .20 per hour raise, but when they go back down we are taking it away from you." ????????? Naw.. it just dont happen like that, sure those stores and others are having to adjust thier prices....................some but not fully otherwise people wouldnt shop there right now.... why raise your prices? all its doing is cutting into your profit..... yeah i know thats wa big deal, no more cable tv, or eatting out for a while..... rough life huh...... thats what i did. no more satelite back to the rabbit ears, no more eatting out on the weekends for a while...... just change your lifestyle some youll figure out you really didnt need all the luxuries in life anyhow , and once your lifestyle is cut down some you will have more money in your pocket then compared to if you had raised prices...............
  3. Gene $immons

    Gene $immons LawnSite Bronze Member
    Posts: 1,028

    thats true

    but why should I have to make changes? Its not my fault gas prices are astronomical.
  4. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    The wording is certainly not the best. "I must pass along the added expense"? Not tahat professional. I would try something different. Pasing it on sounds exactly like are just passing it on, there is no consideration taken to do this. I'll give you one in a bit.
  5. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558

    nor is it your clients so why pass it off.....

    lets says avg price to cut is $40.00

    let say you have 100 yards and it costs you$200 per week in fuel for truck and mowers (lets says 80 gallons total of regular gas @ 2.50 a gallon= $200)( i know it would be more but for the simplicity sakes) thats $2.00 per yard in fiel costs.

    Huricane comes gas goes up.....

    now your fuel expense 3.60 a gallon still the same 80 gallons this would be a total of $288.00 a week for the same amount (80*3.60= 288.00)for the same 100 yards thats now 2.88 per yard a mere .88 per yard increase.

    Ok now so yeah there are 4 weeks in a month assuming gas stayed at 3.60/gal thats $352.00 more a month.

    Big whoop.... considering the high profits in mowing as they are......

    100 clients @ 40.00 (the orig avg)= 4000.00/week in gross revenue or 16000 per month so why complain over a $352.00 monthly expense increase????

    lets say u sent out a letter to each client explaining it b4 the invoice went out ok so now u have 100 clients plus .37 for each stamp ($37 for stamps) plus let make up .15 for an envelope and piece of paper .15*100 = $15 plus computer itme and envelope licking time say it costs you .07 for each one in time to lick and stuff. .07*100= 7.00
    thats a total of $59 to let people know of the increase subtracted from the original 352 only leaves you with 293$ more dollars for your pocket

    thats only 2.93 per client for the month that you would increae your profits.... not to mention out of that 100 say u lost a few clients b/c of it lets say 3 3/100 not too bad huh... yeah til you do the math............ now thats an additional $480 (3 clients@40 a cut for 4x a month) a month you would loose so now your actuall y making less gross not to mention instead of having that $288 a week cost split amoungst 100 clients its now only over 97 which now makes your per client gas costs go up to 2.96 instead of 2.88 so in reality if it happened this way and it is bound to when raising prices you always loose a few now ur actually making LESS with a fuel surchage than had u not raised prices in the first place......

    SO... is it worth it??????????? or can you live without eatting out and cable t6v for another 6-10 weeks (depending on where in the US you live and mowing seasons)
  6. stumper1620

    stumper1620 LawnSite Bronze Member
    Posts: 1,889

    I've tried to post this a bunch of times, this is my last try,

    Here is a rough copy of my letter, I hope!

    Attached Files:

  7. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    yeah but don't we have the right to earn are bottom line. I know we add to the problem buy raising prices but how much should we eat. Really Do you think other companies are just staying in there by taking a loss.
  8. i_plant_art

    i_plant_art LawnSite Senior Member
    Posts: 558

    since i originally made this post i think im goign to take my original $59 and send out letter indicating to my clients that there will be no need for a price increase that i am operating a stable lawn care business and can more than absorb the increase and also that if they hear of any of thier friends talking about how their lco has increased rates that if they will refer them (homeowner friend) to me and mention that i am not raising rates that i will send them a $30 gift card to any business of thier choice as my way of saying thank you. this way i will then have more income per month and be spreading out the gas costs over more lawns thus causing my cost per lawn to go down. yeah it willl take a little more gas but at 2.88 per yard (hypothetical) vs $40 more income its well worth the investment if i sign on a new client for the year.
  9. qualitylandscaping

    qualitylandscaping LawnSite Bronze Member
    Posts: 1,581

    There is a god damn fuel surcharge on my NYSEG (NY STATE ELECTRIC & GAS) for them to drive here and friggen read my gas meter..

    The cost of fuel will be passed along to the customers.. I'm not eating a penny of it..
  10. fullburn

    fullburn LawnSite Member
    from ct.
    Posts: 42

    it's not a loss it's just a little less, for now think big picture in spring, more accounts because your the good guy times a rate increase, I think you will come out ahead in the long run.

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