Fuel surcharge?

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

  1. POPO4995

    POPO4995 LawnSite Bronze Member
    Posts: 1,206

    Diesel is $4.03, unleaded at $3.37. Using just one truck for most of the season, it gets about 325-375 miles on it per week. This year I will have 2 trucks rolling, so i'm really not exact on what numbers will be this year.
     
  2. nadgnik

    nadgnik LawnSite Member
    Posts: 13

    LawnTech, in 2007 and 2008 I put a clause in my contract that stated if gasoline exceeded a certain dollar amount then I would add a gas surcharge. Only a few clients asked me how much the surcharge would be. There were two months last season where I did need to charge a surcharge, and most people were fine with it. I didn't charge them a surcharge until the following month, after I was able to calculate how much more in gasoline I paid. I charged the client based on percentage of revenue. For example, if my total revenue for the month is $100,000.00, and a certain client pays us $ 5,000.00a month, their percentage of the total surcharge would be 5 %. It wouldn't be fair for me to charge the same surcharge to all clients. This year, however, gas has already exceeded the rate I put in the contract. With the tighter economy I may jeopardize losing some clients if my surcharge is too high. I am considering, in lieu of a surcharge, skipping a few weekly mowing services during the fall. How many services will be determinged by how much gas increases. I will give my client the option of a surcharge or skipped services.
     

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