Fuel Surcharge

Discussion in 'Lawn Mowing' started by jwl5510, Apr 23, 2008.

  1. jwl5510

    jwl5510 LawnSite Member
    Posts: 85

    How much are you charging your customer's for fuel surcharge?

    I was thinking of a 4% fuel surcharge for all
     
  2. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,121

    I would just flat out increase prices. A fuel surcharge imply's that it will eventually be lifted. Customers understand that prices go up, no need to lower prices later.

    Also, you don't have to blame it solely on fuel. Everything has gone up, state in your increase letter that you are raising prices because if increases in the cost of doing business. If you blame it on fuel if (and a big if) it comes down, they will expect you to lower the price.
     
  3. cgaengineer

    cgaengineer LawnSite Fanatic
    Posts: 15,783

    I had a customer yesterday that I increased her monthly buy $20 to cover cost increase on fuel, oils, and parts and she canned me! If you knew the the whole story and what I was charging you would wonder why I was even cutting her lawn in the first place.
     
  4. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    we charge a flat fee no matter the size of lawn, it fluctuates with price of fuel we use, it is a little odd i know, but it works. i think the bigger lawns should have a bigger surcharge but that is how my dad has done it and that is how it will be i think for a while. everything is in the air for the future!
     
  5. mngrassguy

    mngrassguy LawnSite Silver Member
    Posts: 2,167

    Surcharges suck. Charge what you need from the beginning and be done with it
     
  6. LedgedaleLawn

    LedgedaleLawn LawnSite Senior Member
    Posts: 377

    You are better off raising your prices across the board, people in general do not like surcharges.
     
  7. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767


    yeah they suck, but when you go from using 250.00 of gas a week to close to $500.00 within a year and a half you have to do something. Always have options, over the years I have learned that piece of advice the hard way. Maybe you don't need them or want them, thats totally fine. We need them and use them... successfully too I might add. Have not lost anyone yet over them, came close last week though.
     
  8. jwl5510

    jwl5510 LawnSite Member
    Posts: 85

    I agree But when you bid the job 3 years ago and fuel was at 1.98 per gallon and now it will be around 4.00 per gallon you have to do something.


    Have any of you added an increase to all customer's and what did you say in the letter? Did any customer's drop your service? and what % was your increase?
     

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