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Fuel Surcharge

Discussion in 'Lawn Mowing' started by Organix, Feb 10, 2003.

  1. Organix

    Organix LawnSite Member
    Posts: 113

    I know there was a thread on this last week, but just wondering again how many of you plan to add on a fuel surcharge and at what price will you kick it in.

    Also, would like to get opinions on the idea that if we go to war, picking that time to spring the surcharge on customers. Perhaps a letter stating that because the war and fuel prices yada yada we will have to charge a fuel charge until prices goes back to X amount. What do you think?
  2. grassworks

    grassworks LawnSite Member
    Posts: 134

    I think it's a good Idea and yet there is nothing I hate more then looking at my mobile phone bill or Nat.Gas bill and seeing those Da mb FACILLITY CHARGE ... SURCHARGE ... UNIVERSAL SERVICE FEE or any other 1/2 doz random fee's. Every other utility or service is adding on Fees for Less Practical stuff and you and I have to pay it. I think the surcharge is a good way to go about it though. If and when the fuel costs lower it is easy to remove it. I can't see adding %35 to my fuel costs without raising my fees in some manner.
  3. we'll be adding a surcharge this year. as for the time i'll kick it in? if you haven't signed by march 1 it'll be added into the cost of regular maintainence. for customers that are already signed we'll send letters out in late March to just let them know whats going on and to respond to the calls that if you add a surcharge "i'll have to think about it." gives us some time to pick up a customer here and a customer there to make up for the ones we can afford to lose, the ones that are on the fence and the ones we do lose. as for when, i'm not sure yet i like to do a quick audit of the company about every other month and see objectively how things are looking for profit, so if things aren't going with the economy and we do go to war, yadayadayada, i could add it as early as may
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I just added a fuel surcharge in my proposals I will be getting ready to send out to new and old customers. With the spikes that fuel takes, I'm not eating that cost anymore. If a 3% surcharge is too much, let them walk. I will add 3% per visit, when the fuel jumps over a designated price. I'm thinking when it gets over $1.80 a gallon. It's over that now, and I'm thinking that it's about $0.20 higher than it should be now. The number for it to get over is the tough question.

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