Gas Surcharge......

Discussion in 'General Industry Discussions' started by Logan's Landscaping, Apr 4, 2005.

  1. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    The commercial trucking firms that we use charge a rate of 12.8% of the total delivered value. They do this becuase if gas were to go down the end user of the products would see their prices go down. The end users wouldn't accept a regular rate price increase because that would be there for ever. A fuel surcharge is temporary. (well supposed to be anyway)
  2. wagil

    wagil LawnSite Member
    Posts: 21

    So what's everyone's game plan now that we're well over $3 a gallon?
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  3. 205mx

    205mx LawnSite Silver Member
    Posts: 2,355

    One tank for a day?

    Hahaha. I do 3 gal/week
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  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    As back then as now. Fuel is just an expense as any other expense. One's prices should cover the cost of one's expenses.

    To raise one's prices and add a fuel surcharge is wrong.

    As a business owner I do not want to raise prices just because I feel like it. Though if I need to raise my rates I will have no problem telling my customers that there will be a price increase.

    I will not hide an increase as a fuel surcharge. I have yet to see any LCO's raise and lower their fuel surcharge as fuel prices go up and down.

    A surcharge does not follow fuel prices is not a surcharge. Just a person hiding a permanent price hike.
  5. GRPM LLC.

    GRPM LLC. LawnSite Member
    Posts: 21

    As others did in 2005 when this thread started, I started charging a surcharge for fuel once it reached $ 2 a gal. I remember that increase went out to my customers in the June statement of that year. I simply wrote a note on their statement that due to the price of fuel, that a surcharge of $ 1 per cut would be charged. It has gone up and down along with the price of gas, I'm now at $ 2 a cut. I have never heard any backlash from my customers, and a few I did happen to speak about it face to face completely understood. Everyone has their way of running their business. The rising gas prices were and still are a cost of living increase for everyone of us. It costs more to eat, send or receive a package, and to heat your home in the winter, all due to higher fuel costs, so why should it not cost more to have your grass cut?
  6. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    This little blast from the past is funny. I see one guys average price for a lawn was 35 in 2001. Now with gas at 3-4 per gallon i have to compete with morons charging 25 for any lawn. Dont sweat the small stuff boys.
  7. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    So, in the span of 8 years you only increased lawns $2 ???!!!
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  8. Marshmallow

    Marshmallow LawnSite Senior Member
    from IL
    Posts: 329

    Time to hop on the Murray and go down the street yelling out $12 any lawn!
  9. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    At least you wont get any competition from the 12 year olds. They arent that stupid.
  10. wagil

    wagil LawnSite Member
    Posts: 21

    I think my yard man has a better cut than a Murray ha ha.
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