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fuel surcharge

Discussion in 'Lawn Mowing' started by turbo5560, May 10, 2008.

  1. turbo5560

    turbo5560 LawnSite Senior Member
    Posts: 304

    after putting it off as long as possible I am forced to start charging a fuel surcharge after gas hit $3.89 this week. Does anyone have a letter that they sent to their customer explaining their fuel surcharge that they might want to share?

    thanks in advance
  2. Ed Ryder

    Ed Ryder LawnSite Senior Member
    Posts: 541

    Last year in my area, the price of gasoline peaked around Memorial Day at $3.17, then dropped after June 17th.

    If you call your price increase a fuel surcharge, are you going to cancel the fuel surcharge when/if prices fall? I would just label it a necessary increase to cover the rising costs of servicing your customers. Then if gasoline prices fall, it's easier to keep your increase in place.
  3. totallawncare25

    totallawncare25 LawnSite Senior Member
    from TN
    Posts: 288

    I would agree in the beginning of the season i contacted all my customers about me having to raise my rates due to the obvious rise in overall cost of everything that they were well aware of already and most were pretty much expecting it anyway and were cool about it.
  4. turbo5560

    turbo5560 LawnSite Senior Member
    Posts: 304

    ya i have talked to several customers and they seem fine with it. I was going to put somewhere in the letter that as long as gas is over 3.60 a gallon on a weekly average then i would have fuel surcharge.
  5. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    The letter I wrote. went something like this,

    dear: "Customer"

    Due to the current situwation, we regerat to inform you that our prices have changed. Please make note: that as of xx-xx-xxxx. the increase will be ineffect.

    if you have any questions or concerns Please do not hesitate to call xxx-xxx-xxxx

    thank you.

    Of corse check spelling, I kno I suck at it..........lol.

    But stirght and to the point nd hopefully you " and I " wont loose too many of em.

    Good luck
  6. jaybird24

    jaybird24 LawnSite Senior Member
    from midwest
    Posts: 623

    We raised rates this year in anticipation of higher gas and higher everything. Nothing is getting cheaper, and I don't believe it will. I believe in sticking to a price that was contracted. Sure fuel cost is high, but nothing that can't be compensated for before the season. If it were to jump to $6.00 a gallon sure, and people would understand, otherwise live with it and adjust prices accordingly for next season. In the grand scheme gas has inflated less than many other things in our business and we don't surcharge for all of the other variables. I can understand a trucking company having to surcharge for fuel, but not a service industry. Just my .02 cents worth.
  7. mag360

    mag360 LawnSite Silver Member
    Posts: 2,446

    We have had a fuel surcharge in effect for two seasons now with great results. No complaints from the customer and it allows us to mirror the cost of fuel without cheating the company or the customer. Last month our surcharge produced about $800 which offset fuel costs by about $1.45 per gallon (basically anything over $2.00 per gallon). The price of fuel has gone up for the month of may and our fuel surcharge will reflect it without having to re-price each property.
  8. SimonCX

    SimonCX LawnSite Senior Member
    Posts: 729

    I think everyone is going to have to raise there prices pretty soon or go out of business. Now there saying that if nothing changes we could see prices hit close to $10 a gallon. Gas is already 30% more then last year so it's not out of the question to see $5-6 by the end of the year, diesel is around $4.30-4.50 in my area. I think there will be alot of companies shuting down if it goes up another 40-50%.

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