GAS PRICES GOING UP - HOW MUCH More To CHARGE?

Discussion in 'Business Operations' started by petara, Mar 7, 2012.

  1. petara

    petara LawnSite Member
    from NW PA
    Posts: 29

    What is everyone doing about gas projected to go over $4 + per gallon this season?

    I am raising most of my customers at least $1 to $3 more to cover the costs depending on the customers lot size. Is this enough? Most of my accounts are about 1/6 to 1/4 acre or so and they are all within a couple miles apart with some on the same street... I raised most of them last year a dollar or two...
    Any and all comments welcome...
     
  2. THEGOLDPRO

    THEGOLDPRO LawnSite Fanatic
    Posts: 5,223

    Im not going up. I priced my accounts accordenly the first time around and feel no need to raise prices because fuel is going up alittle bit.
     
  3. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    I've always priced my yards a tad higher for a comfort zone.
    Posted via Mobile Device
     
  4. WHIPPLE5.7

    WHIPPLE5.7 LawnSite Senior Member
    Posts: 958

    I got my fuel in bulk when it was cheap. Not saying I won't use it all by July but atleast I will have had a good chunk of the year on cheap gas.
    Posted via Mobile Device
     
  5. blk90s13

    blk90s13 LawnSite Bronze Member
    Posts: 1,452

    Same thing here my prices always a bit higher than I would like to get to cover inflation
     
  6. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    I added a fuel surcharge cause this year......If gas reaches $5.00 / gal there is an additional $3 added on a week by week basis. My lawns are priced right to cover up to there......
     
  7. BrunoT

    BrunoT LawnSite Senior Member
    Posts: 741

    My comment: If you don't have the knowledge of gas your mowers use and can't do the basic math required to figure this out you should probably be working for someone else. This is like going on a financial forum and asking how to figure out how to figure out what the interest on $100 at 10% is each year.
     
  8. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    Likewise, if you think the price of gas only effects the fuel in your mowers you are sadly mistaken. It effects everything. From the prices of trimmer string to the price of tires, to the price of mowers themselves.
     
  9. blk90s13

    blk90s13 LawnSite Bronze Member
    Posts: 1,452

    Amen to that.
     
  10. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Posts: 1,420

    Gas here was near $5.50 a gallon all of 2011 and it's going up more all the time. Plus we have new gas taxes coming into effect again this summer on top of the already high costs.
    I have had a fuel surcharge clause for years now.
    One client we serviced for three years always signed with the clause on their contract. When gas went up last year, they flat refused to pay the surcharge.
    Actually, it was the management company who refused and the HOA wouldn't do any-thing about it either. Very frustrating. We lost the account now.

    I can put a lien on the property, which would eat up the surcharge that I lost. So, I wrote the loss off on our taxes.
     
    Last edited: Mar 10, 2012

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