Fuel escalation clause

Discussion in 'Lawn Mowing' started by Turfdude, Aug 24, 2003.

  1. Turfdude

    Turfdude LawnSite Bronze Member
    Posts: 1,900

    I always include them in my contracts. This year may be the first I have to impliment them. Fuel was under $1.10 a gallon in January when I mailed my original batch of contracts to existing clients. My clause adds 5% at $1.50 - and prices here just went over $1.60. I will be enclosing a reminder letter moting the 5% increase in all prices as of September 1, 2003. The newer contracts (any newer accounts acquired after 3/1) received a higher pricing structure and fuel was higher, so their prices won't move until gas surpasses $2.00/ gal.
    I for one hope that this will be a short lived fuel hike - my 460s d 351 just love the stuff too much.
     
  2. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    we're getting close to that marker here in CT.

    regular/mid/high is $1.93/1.99/2.03 now.

    we've got $.43/gallon tax for the state right now i believe. unfrigginreal
     
  3. 1grnlwn

    1grnlwn LawnSite Bronze Member
    Posts: 1,261

    Relax as soon as all the last minute vacations and all the college travel has subsided the gouging will lighten up. Remember don't buy any soda or ciggs from these --- holes.
     
  4. sniggly

    sniggly LawnSite Member
    Posts: 190

    Hadn't thought of that. Not a bad idea now that I have pondered it. But you know something? (here we go.......).....

    America has been strapped to the table by the environmentalist's incessant lobbying of all legitimate U.S. governing bodies in existence.......for the continued hampering of our own countries ability to provide for itself with regard to petroleum based fuels!!!!! I am sick of hearing about gas shortages when so much more drilling technology exists today than 10 years ago. AND WE HAVE DISCOVERED that there is more oil available (exponentially) than previously thought!!!

    Makes me sick that we are so dependent on countries that would just as soon nuke us if the opportunity presented itself.:angry:

    MY OPINION!!! (whilst I beat my chest!)
     
  5. GLAN

    GLAN Banned
    Posts: 1,647

    Gas prices go up every summer than come down towards winter. This year after year after year. SOP.
     
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    At $100 per cut (im assuming you charge per cut up where you are) that will pay the price difference for 10 gallons. $5 extra per cut X >50 per gallon. You wont use nearly that much in gas soo you will definately come out ahead. It just seems like alot of work to me. And written agreement or not some will think your being cheap evan though your not.
     
  7. Red Dwarf

    Red Dwarf LawnSite Member
    Posts: 99

    An excellent point. We don't have any choice but to buy gas from a gas station...but we sure don't have to buy groceries there! Plus they're usually more $ than the grocery store anyhow.
     
  8. imograss

    imograss LawnSite Senior Member
    Posts: 796

    if im not mistaken this increase is due to the ruptured lines that the crazy iraqis blew up causing a so called shortage. i dont know why the u.s. cant tap into the reserves weve had for years and dont use, especially if this will be an all time record high for fuel prices. i think we (the u.s.) should be more self sufficient, and less dependant on other countries resources. just my .02 gas in my area is around 1.70 for reg.
     
  9. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Posts: 4,347

    Just buy like 500 gallons in the winter when prices are at their lowest... HAHAHAHA. Question, how many gallons of gas do you guys keepo in your rigs each day?
     
  10. Rob T

    Rob T LawnSite Member
    Posts: 165

    5% seems a little too much to me.

    If you mow a lawn for $40 and it takes 1 hour of running one mower that would be about 1 gal to 1.5 gal of gas.

    So $40 x 5% = $2.00

    Now gas went up from 1.10 to 1.60 or .50 cents

    So $0.50 x 1.5 gal = $0.75 in additional cost to you. Your now charging $1.25 extra for what?

    Now I know there are other fuel costs (truck, 2 cycle etc.) but I still think 5% is too much. Will your customers go for it?
     

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