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Gas prices

Discussion in 'Lawn Mowing' started by moneyman, Apr 5, 2004.

  1. moneyman

    moneyman LawnSite Member
    Posts: 136

    Saw on the news that a Chicago plumber and other types of business are not taking new jobs becuase the price of gas is to high.He said he would not pass on the cost becuase he was afraid of losing customers but wont take jobs until gas prices decline.

    I heard that thois summer gas is supposr to be in excess of $3.00.

    Are any of you going to "pass on " the cost to the customer or soak it up and find more fuel efficent methods?
  2. Luscious Lawns

    Luscious Lawns LawnSite Member
    Posts: 133

    Yes, Yes, Yes, Gas is simply another cost of doing biz. Like the price of feterlizer or tires. If it cost me more It'll cost the new client more. Of course existing service contracts will remain the same price,

  3. Ax Man

    Ax Man LawnSite Senior Member
    Posts: 446

    If you think about it all of your costs are going to rise with the gas. Everything must be transported at some time.
    I'm working on the wording of my disclaimer now.

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Gas is cheaper today than in 1986 after inflation. " I'm not going to get more business till the price of trucks come down" That sounds like a dumb statement, Right. The economy can only go two ways- up , higher prices for every thing, higher pay, strong economy. Or down, lower prices- lower pay, lower profits, Downward pressure on the economy. Lower standard of living. This has the same tone as low-baller, Cheaper Cheaper Cheaper, till there is no service, no quailty, no profit, no reason to do it any more. All the parts of the economy are tied together. They must all go up together. " car dealer go to Wally World. buy cheap China made stuff and food that wally pressured supplier to sell to them at no profit because wally is only game in town because they drove out all the mom and pop stores. Car dealer go home and tell wife how smart he is because he save so much by buying at Wally and how great it is to have Wally close by. Next day he goes to work to sell cars, mom and pop come in and look, cant buy because they no longer have store because Wally put them out. Big food distributor comes and looks but cant buy because he made not profit on food he sold to Wally. Wally worker comes in to look at cars but he cant buy because he only makes $6.50 a hour. Layed off textile worker doesn't even come in because his job went to China. Car dealer go home to wife and says no car sales-- no money-- Call realtor because we cant keep the house AND CANCEL THE LAWN SERVICE." POINT IS-- buy the gas-- pay the price-- pass it on-- keep the economy rolling. What good does not working do, Plumber goes hungry and Chicago has more cr-p plugging up the works. Sorry for the rant but we can not have it both ways, wanting good pay but wanting to pay cheap does not work. Pay good and get paid good or Pay cheap and get paid cheap. Im sure this will open a can of worms about how I don't understand OPEC and why the rich should not be rich, I do know that the economy is much more complex than can be explained in one post but I just worry about this country and how my kids are going to make it.

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Sorry to keep ranting but to bring the point closer to home, think about the the independent lawn mower shop. He use to make a lot by selling to homeowners. Now Lowes and HD have pressured the lawn mower manufactures to build cheap quailty and cheap cost mowers and all homeowners shop there. Independant guy has to make it up some where so our costs are going to go up to help him make it or he will fold up shop and than we can not get the quailty stuff we need or get our stuff fixed. I better stop typing and start cutting grass before I offend somebody. Happy Monday
  6. FFMED74

    FFMED74 LawnSite Member
    from Indiana
    Posts: 242

    I have a clause in my service agreement that if gas goes to $1.90 a gal 87 octane then a $2.00 a cut gas charge goes into effect. After the price drops below $1.90 the extra $2 goes away.
  7. STAN1366

    STAN1366 LawnSite Senior Member
    Posts: 334

    Sounds like a reasonable idea. Even the 'old folks' who don't like it when we have to increase their price have got to know that it's costing them more just to drive their cars, right? I sure don't have much equipment that doesn't use gas, though the 'operator' gives off some now and then! :eek:
  8. ranger520

    ranger520 LawnSite Member
    Posts: 231

    I added a $150 surcharge in the event gas prices rise above $1.85. Doesnt seem to make a dif to the customer. Also I am working with a local gas company to go on a monthly contract. In most cases they give you the best price of the month.
  9. ranger520

    ranger520 LawnSite Member
    Posts: 231

    Sorry, that was a $1.50 surcharge not a $150. That would shock a few clients. Believe it or not, I made that booboo on my contracts and caught it before I sent them out.
  10. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    this gas deal is killing guys with fixed contracts!

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