How many of you have added a fuel surcharge?

Discussion in 'Lawn Mowing' started by Petr51488, May 26, 2008.

?

Fuel Surcharge

  1. Yes, i've done it allready

    18 vote(s)
    28.6%
  2. No, and don't plan on.

    18 vote(s)
    28.6%
  3. No, but i will soon.

    27 vote(s)
    42.9%
  1. Petr51488

    Petr51488 LawnSite Silver Member
    from NJ
    Posts: 2,371

    Well, how many of you have done it yet? I will add an extra 5.00 to each bill at the end of the month once gas goes over 4.00, and diesel goes over 5.00 Their very close, and i would really hate to do it, but this is ridiculous allready! 5.00 doesn't sound like much, but multiply that by 72 customers, that gives me an extra 360.00 a month in fuel. For me, thats good enough for the gas truck and equipment. Forget about the diesel truck.. i'll be at the bank tomorrow trying to get a mortgage loan! lol
     
  2. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    In the first place, 5/ month prolly isnt enough. Why not just raise rates? This is the perfect opportunity to do so. Why are lawnboys the only business not raising rates?
     
  3. gorknoids

    gorknoids LawnSite Senior Member
    Posts: 316

    We looked at doing that, but felt it was more justifiable to consider everything which has gone up (Seed, fert, chemicals, oil, beer, hookers, etc....) when considering price hikes, and doing it in an organized fashion annually. Gas won't be going back down until we have a conservative congress which isn't afraid to tell the tree-huggers where to get off. The first shovelful of dirt at the groundbreaking of our first oil refinery will knock a dollar off the price of a gallon of gas because OPEC and the oil speculators will see that we intend to compete with them.
     
  4. Imow4u2

    Imow4u2 LawnSite Senior Member
    Posts: 377

    I base mine off current Natl. avg. fuel price.. I take a percentage of the gross invoice and add to the original.. 47.50 cut @ 3.83 Gas = 47.50+16.5%=55.34 My Surcharge increases .75% every dime fuel increases...
     
  5. DreamtheGreen

    DreamtheGreen LawnSite Member
    Posts: 141

    4% right now and if gas goes over 4.25 gallon then 6% and no complaints yet.
     
  6. General Grounds

    General Grounds LawnSite Senior Member
    Posts: 902

    $2.50 a week added to everyones bill, its in our contracts so people havent said a word. tony
     
  7. Pietro

    Pietro LawnSite Senior Member
    Posts: 857

    we have many small accounts that we charge 27.50 for...those will be getting a 3$ per cut surcharge, and the other accounts will be getting between that and 7$. Its just too much money to be spending. Costs about $250 to fill my F250 mower and 3 5 gallon cans with diesel.....that doesnt even include gas! I am adding surcharges next week
     
  8. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Posts: 1,100

    if gas goes up to $5.00 a gallon, then ill go up $5.00 on all my yards. either that or 10%.
     
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Been there, done that.
     
  10. lawnwolf

    lawnwolf LawnSite Member
    Posts: 7


    Just my opinion but that seems kind of steep for a surcharge?

    Let's say you use 2 gallons of fuel for a $47.50 cut and gas were to go up by $1.00, then your costs increased by $2.00 yet your surcharge is $7.84, almost four times the increase.

    If fuel go up by 10 cents your surcharge goes up by 36 cents?
     

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