Fuel

Discussion in 'Trucks and Trailers' started by tthomass, Apr 4, 2008.

  1. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    When you look at the big picture.........fuel, all fuel, could be $5 gallon and it wouldn't really matter. It is a minor expense in this industry. Yes, more so if you're mowing etc daily but I don't see where it would be hard to round up a few extra bucks a day.

    When I got my International, fuel was at $2.89 for months and now is $4.00 per gallon. I get 8mpg in that truck and lets look at 1,000 gallons of fuel.

    @ $2.89 = $2,890
    @ $4.00 = $4,000

    1,000 gallons X 8mpg = 8,000 miles.......say thats 6 months of driving

    I'm looking at an extra $1,110 over 6 months.

    Say there are 20 working days per month X 6 months = 120 days

    $1,110 / 120days = $9.25 per day.

    Now lets look at the day to day stuff. You forget a tool and have to drive back to get it......need 2yds more mulch to finish the job........have rain cut you short a 1/2 day......need a new tire..........oil changes..........get stuck in traffic losing production time..........say you're billing $50 per man hour x 3 guys held up just 30min in traffic = $75 you lost.........I can make one mistake and lose several hundred dollars instantly on a job.

    That extra $9.25 per day.......I don't care nor give it the time of day to waste thinking about. Its NOTHING.

    I am setup on a fuel network here recently with Quarles and I save about 15 cents per gallon on fuels. Its handy to me where they're located and I can save a few bucks........especially now that I can run off road diesel in the Bobcat that I buy from them. I get a bill at the end of the month, pay it and I'm done. So over the course of teh year I'll save a decent chunk of change that I in turn look at that small savings as a free tank of fuel here and there.

    Just a thought............fuel, don't worry about it. Your time is better spent on maintaining your equipment and doing your job.

    Feel free to add, I know there are variables and different businesses etc but whatever I do will not effect the fuel market and I must simply pay whatever it is and keep moving.
     
  2. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    agreed, last year i was spending about $1000/month in fuel, so another $1 a gal translates to about $300 a month?? if i raise my 100 lawns up $1 a visit is $400 a month, but since a handfull are bi-weekly etc im back down to about$300 which covers my fuel increase only. however, i raised all lawns $1-$5, both for fuel as well as typical inflation. im not saying i wouldnt mind paying a bit less, but ive passed the fee along, our profits shouldnt be affected all that much.

    i like to complain about it, but in the grand picture, its not all that bad. my health insurance for my family is almost $1100 a month and we dont ever use it except for the few Dr. visits a year. so we dont use $13200 worth!
     
  3. jkason

    jkason LawnSite Senior Member
    Posts: 548

    I know I've posted this in another thread, but it's worth mentioning again....

    In your off-road equipment (mowers, heavy equipment, trimmers, whatever), you can recoup some of the TAX that you pay on your fuel when you file your taxes.

    Might not be worth doing for everyone, but the bigger operators will definately see some savings. (Check with your accountants - laws vary state to state.)
     
  4. lawn king

    lawn king LawnSite Silver Member
    Posts: 2,281

    Im in complete disagreement with all 3 of you! Diesel has jumped from $1.24 in march of 2003 to an average of $4.10 per gal. Look at the big picture here, everything from freight to fertilizer has increased in price due to the cost of fuel. When the average american has to spend such a high portion of their net houshold income on fuel, they have to cut back on the luxurys. Lawn services, pool,house cleaning, sealcoating and car-washing are among the first luxurys to get the axe. Super high fuel costs kill the economy, i went through this in the 1970's, its a very bad situation!
     
  5. OH, now I feel so much better about it all now.
     
  6. Chilehead

    Chilehead LawnSite Bronze Member
    Male, from Stockbridge, GA
    Posts: 1,925

    Thank you! Thank you! Thank you! I am tired of all the whiners who complain about fuel costs--fuel in the US is still cheaper than most of the rest of the world. Furthermore, the extra $10.00 a week you might be paying in the future is the equivalent to what? Two or three lattes at Starbucks every week? Or maybe a fast food lunch twice a week? Quit complaining!! Start brown bagging your lunches for cripe sake! Fill your 5-gal. cooler with ice water, and quit buying beverages from the local quickie mart! There are plenty of ways you can economize. Americans, for the most part, are the biggest bunch of sissified babies in the world! You can just hear them, "Waa-a-a-h!! I want my venti mocha! You just CAN'T take that away from me!" Grow up America! And for all of you who LCOs who think I am off my rocker: go to hell.
     
  7. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    I'm speaking specifically to our daily operation............not trucking companies, W-Mart, grocery stores etc.
     
  8. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    Diesel fuel right now in B.C. Canada is 4.84 a gallon the gov't is slapping a carbon tax onto it so by this summer it should be 5 dollars a gallon maybe 5.50 in the peak of the summer.

    The expenses go up the hourly rate goes up on the equipment and labour etc.

    Oil companies are putting the screws to North America nothing we can do about it. They have us by the familly jewels, they know we need vehicals to get around.
     
  9. lawn king

    lawn king LawnSite Silver Member
    Posts: 2,281

    (quote) Fuel is a minor expense in our industry? You cant be serious.
     
  10. PlatinumLandCon

    PlatinumLandCon LawnSite Bronze Member
    Posts: 1,315

    Its minor in the grand scheme of things. It gets more of a "major" appearance since its such a commonly used consumable, regardless of the size and type of equipment. Of all bills for your business, is fuel the highest?
     

Share This Page