Gas Prices

Discussion in 'Starting a Lawn Care Business' started by RandyAndSons, Jan 23, 2006.

  1. RandyAndSons

    RandyAndSons LawnSite Member
    Posts: 22

    Hello all im new here and just wanted to ask a ? about gas prices and how you all are dealing with it? :)
     
  2. 6'7 330

    6'7 330 LawnSite Bronze Member
    Posts: 1,822

    Raise prices, and include a fuel surcharge in 2006 contracts.
     
  3. n2h20

    n2h20 LawnSite Senior Member
    Posts: 503

    fuel surcharge for everyone? What do you tell them? its 50 for the cut and another 5 or so for gas to get here?
    I have wanted to add something like this to my billing for awhile and not sure how to go about it.
     
  4. RandyAndSons

    RandyAndSons LawnSite Member
    Posts: 22

    Yes what i am going to do is just put the fuel surcharge in the monthly invoice 2.50 per visit on my bi weekly jobs and for my weekly jobs 1.50 per vistit, Make sure you send that letter out expaining what is going on and why.
     
  5. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    These arent the exact words I use in all my service agreements, but it should give you the general idea on how I word it:

    "Your weekly service call fee is based on the average monthly cost per gallon of fuel to be between 2.10 and 2.50 per gallon. Should the average cost of fuel be above or below this range, a small credit or surcharge will be applied to your invoice for that particular month. Please be advised that we derive no revenue or profit from any fuel surcharge."

    fyi we know how much fuel we use per month, per account. You also need to make sure you allocate truck fuel down to each account as well. We have never had a single question or customer problem as it relates to the fuel surcharge. For most residential, it rarely exceeds a whopping $5 per month, but larger for commercial properties. Some may say "why bother" with small surcharges? $5 or $10 per month for each account does add up to a not so insignificant total dollar figure. In addition, profit margins on mowing are thin enough as it is let alone having to eat increased fuel costs.
     
  6. rfed32

    rfed32 LawnSite Senior Member
    from Hatboro
    Posts: 680

    i give new prices every year i will just add on a few dollars and tell them why...most of my custermers are fine with it...you always get that one or two that give u crap and then i tell them have fun find someone else cut ur grass that way and not charge for this and this and this tell them i dnt need their lawn and then a few weeks later they will call back and ill charge them five bucks more and they will still go with me..
     

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