1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .

    Dismiss Notice

Gas Prices Soaring :(

Discussion in 'Lawn Mowing' started by All_Toro_4ME, Nov 9, 2007.

  1. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Posts: 1,578

    I heard some crazy analyst on the news the other day stating that the predictions are that gas will soar past $4.00/gallon and in some areas of the country get close to $5. If this actually happens, will you guys raise your prices from the $35/yard or whatever it is you charge to a new amount, or just suck it up?
  2. stuffdeer

    stuffdeer LawnSite Bronze Member
    Posts: 1,538

    So what...Add a fuel surcharge, and my customers will pay all my gas for me.

    And plus, Getting 20mpg towing the trailer has it benefits.
  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    If you're a business man, you HAVE to raise your prices.

    In the last 5 years, my fuel costs have gone from $8,000 / 6 month season to $17,000 this season, and I'm just a solo op.

    Next year I'll be raising prices by 10% across the board.

    Yes, fuel is still only 9% of my gross, but my customers don't know that.

    Fuel costs are what will drive this country into the ground. At some point, people will only be able to afford to drive to work, especially if they drive more than 10 miles one direction to get to work, and there's nothing that can be done about it.

    Just look at the service industry, or more of an example the trucking industry where some of the larger national companies are burning 500,000 gallons of fuel / week. You and I not making the extra trip to Wal-Mart are going to do nothing in conserving fuel.
  4. Phaneuf

    Phaneuf LawnSite Member
    Posts: 30

    I quote prices with fuel factored in at $5 a gallon already. Prices WILL reach $5 a gallon, its just a matter of when. I've been researching Cordless Electric, but it looks like that technology still has far to go.
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Nope, my prices were already raised by 5 bucks across the board, went through this process between last year and the year before.
    It cost me a lot of customers and some headaches, but I had to do it, eliminate that nonsense, it hurts at first but I'm better off now.
    No fuel surcharges ever, no mid-season cold sweats, well... At least not because of that!

    I remember the days when 70 and 80 bucks gave me enough fuel for the week, wasn't that long ago.
    Now $100 is good just for the truck, equipment is extra, for me fuel has passed 10% of gross.
    But +$5 more than compensates, once fuel goes much past $5 a gallon I may worry again.
  6. SimonCX

    SimonCX LawnSite Senior Member
    Posts: 729

    I read an article about this last week and it said the we can expect $4-5 a gallon in the next 3-5 months and that what seems high now we look cheap. I want to see the guys who mow for $15 then. I though gas was expensive 4-5 years ago when I was filling up my truck but now it's just getting ridiculous. The oil companies just keep getting more and more greedy and it seems like anyone farts in the middle east and gas goes up the next day.
  7. packey

    packey LawnSite Senior Member
    Posts: 556

    Gas is already 3.40 a gallon here and I believe it will be 4.00 a gallon this summer if not more. this is why I am chargeing more I really want to go all diesel this way I can make my own fuel. Has anyone tried to run bio diesel in a mower
  8. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Posts: 1,578

    Man if that aint the truth.

    And I understand where someone on here mentioned "if I were a business person, then I would have a built in fuel charge, blah blah blah." I get that, and I have that already. The reality is it looks good on paper, implementing it in the field is a different breed of cat. You're either faced with losing long term customers who have payed you well over the years and on time, and dropping you for someone cheaper, or the cust sticking to the price that they feel is fair and what "everybody else in the neighborhood" is paying. And new accts are just as difficult to obtain trying to market this concept. IMO, theres not a good happy medium. I've raised prices before, but never like to. Always ends up in losing some good accts. I'm just saying these fuel prices are getting crazy...
  9. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    I hear what everyone is saying so makes me wonder why a guy has a add in local; paper thats says this ........Lawns mowed $13 and up . How in world this guy makes any money at 13 bucks is my guess . Like someone told me it prob takes him 7 bucks just to show up in his truck before taxes and insurance, oh yeh he has no insurance and pays no taxes
  10. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Posts: 1,330

    Yea but if gas keeps going up...I think you'll even see some of those prices going away. Around here the big number seems to be 25. Whatever...charge your 25 and starve for all I care...cause I wont.

    Ya know...we here all kinds of bull crap answers...but what the hell is going on with these gas prices??? This is insane! Sure we can raise prices, and we will...but our customers get screwed at the pumps too...and since the American dollar is turning into a peso...God knows where this is all headed.
    But hey...at least we have Bush Jr to "configure" it all out for us! :usflag:

Share This Page