Fuel surcharge?

Discussion in 'Network: Central' started by Lawn Tech LLC, Mar 16, 2008.

  1. Lawn Tech LLC

    Lawn Tech LLC LawnSite Member
    Posts: 69

    I, like alot of you, have my commercial contracts for the 08 season all signed back in October of last year not knowing that fuel would be at or near $4.00 per gallon. Has anyone figured out a surcharge price that is enough to cover costs but not make the client start shopping around for a new contractor?
    Most companies understand a surcharge but there is a point that they think you are taking advantage of them.

    Thanks

    LT
     
  2. Atlantic Lawn

    Atlantic Lawn LawnSite Senior Member
    Male, from Outer Banks NC
    Posts: 939

    That's not an easy sell and that's the reason why contracts are put in writing, protects You and the Client. How much do you estimate you will lose with a base fuel price of $4.00 ?
     
  3. Lawn Tech LLC

    Lawn Tech LLC LawnSite Member
    Posts: 69

    My bids were based on a price ceiling of $ 3.90. Not a good thing since our fuel prices are $ 3.85 for diesel and $ 3.10 for unleaded already. I will need to go up about 5% at $ 4.00 but I do not think it will stop going up until after the election. If I am lucky enough to get a surcharge 5% will not cut it by This summer.

    LT
     
  4. pinto n mwr

    pinto n mwr LawnSite Senior Member
    from gr8, mn
    Posts: 422

    yet another thread on fuel costs.....
    KNOW your costs.....
    5%, come on, I thought the oil companies were the only ones profiting on rising prices...
    Yeh, fuel is increasing all around us, and yes our price will need to be increase at some point, but not yet. I will not get into this in great detail because I have a headache from people not knowing their costs. To put it shortly, for every dollar gas may increase it would ONLY mean a 1% increase in total expense. This is just my example though.
     
  5. Lawn Tech LLC

    Lawn Tech LLC LawnSite Member
    Posts: 69

    I asked a question to see what everyone else was thinking. I nor anyone else needs to listen to a guy who has nothing important or relevant to say other than coming down on someone who is not as perfect as you. You are the reason alot of guys will not ask the questions they need answers to because people like you do not have the understanding that all of us are not perfect. I thought this web site was to help each other out, even if it is a Stupid question, not to try to prove that you know it all and have all the answers. Next time you see a stupid question, just don't reply to it. Nobody wants to hear what you think anyway.

    LT
     
  6. ffemt1271

    ffemt1271 LawnSite Bronze Member
    Posts: 1,285

    Amen!!!!!!
     
  7. pinto n mwr

    pinto n mwr LawnSite Senior Member
    from gr8, mn
    Posts: 422

    nobody wants to hear what I say? I suppose this is a free counry and all, but if someday the garage at your house gets a little tight and expansion of business is in the future then maybe you might want to listen.
     
  8. Lawn Tech LLC

    Lawn Tech LLC LawnSite Member
    Posts: 69

    Well lets see. I have been in business since 1984 and have not worked out of my garage since 1986. I have raised 4 kids doing this and 1 is in college and 1 starting next year. This history lesson is just to let you know that we all do not have to cut others down to make us feel high and mighty. I am happy to help others out without making them feel like they should kneel down and be thankful that I talked to them. In the future if someone needs help and you want to give them your wisdom leave the sarcasium out of it and just help if you can. By the way my "garage" is 75'x75" and 18' tall and paid off so I do not need your advise.

    LT
     
  9. POPO4995

    POPO4995 LawnSite Bronze Member
    Posts: 1,206

    Wow, that was good. I have adjusted only a few accounts that needed to catch up to the others and all balance out. Thats about it. I will revisit the issue next year...
     
  10. Lawn Tech LLC

    Lawn Tech LLC LawnSite Member
    Posts: 69

    Sorry about the rant. What are your fuel prices up there and how many miles on average do you run a week?


    LT
     

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