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Gas prices....are we going to lose business?

Discussion in 'Lawn Mowing' started by Carolina Cutter, Mar 7, 2005.

  1. Carolina Cutter

    Carolina Cutter LawnSite Senior Member
    Posts: 987

    Well talked to a gas distributor rep today. Bad news fellas. He said that regular 87 octane will be at $2.60 a gallon by memorial day and that it will probably NEVER drop below $2.00 after that.

    So if these prices do this, what do you think the impact will be on customer loss ratios? I am a little concerned over this news today.

    BUt hey......on the upside of things.....maybe this will lower the number of uninsured, unlicensed, no tax paying scrubs that start up this year because the prices will bo so high....dunno.
  2. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Posts: 3,503

    The sad thing is a scrub will start mowing for $20 just to make extra money to get by on because gas prices are so high. I was thinking it may actually be more people mowing to try and offset some of there exspenses.
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    People always find a way of paying for what they want. Are you thinking the rise in fuel costs to the homeowner who will now spend more per week in their own car is going to be a problem? I don't see it as that big of an impact for them as it would be for us. Who knows? Besides, nothing we can do to change it anyways.
  4. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    If and when the prices do soar, all we can do is sit back and take it. We will have no choice.
  5. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    If gas prices get too high the economy will tank and business's will begin laying people off. These newly un-employed people will be looking for ways to make a buck. What will be the easiest way to make money quickly? You guessed it...lawn mowing. This business could be overun with grass cutters in a few months.
  6. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Time to find other ways to conserve fuel and keep costs low. Keep air filters clean, keep blades sharp and balanced, air pressures up, plugs good, fuel filters clean, etc.
  7. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Posts: 2,267

    You are probably right everybody with a truck and a mower or two in the garage will be looking to start up.
  8. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    Let's just hope things don't go that way.
  9. treedoc1

    treedoc1 LawnSite Senior Member
    Posts: 319

    The sky isn't falling...

    what % is fuel on your sales?
    It's less than 4% for me...6 trucks, 3 skid steers, a track hoe.

    Gas going up 25% (1.85 to 2.30) adds 1% to my expenses.
    Can you find efficiencies to equal that 1%? I think I can.

    If you average $30 a cut you need to raise your price 30 -35 cents. 20 cuts a day is $6. If you don't surcharge your customers, pack your lunch, don't stop at Mickey D's, you come out ahead.

    Put it in perspective
  10. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    Good point, treedoc. Still, I'm glad I raised most of my clients this year.

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