Increasing Gas prices help the green industry

Discussion in 'Lawn Mowing' started by ALarsh, Mar 12, 2008.

  1. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    I was just watching the news and they said there are very good chances that gas will reach $4 per gallon and sustain that price over summer. I think this helps the industry. The lowballers margins are cut by soo much that they can no longer sustain being in business. They can't put food on the table so to speak and realize they aren't making any money with their cheap customers. I am now able to increase my prices by $2-3 without argument on an average residential account but in reality, it only costs me an extra $.50 or so in increased fuel costs.

    The only small area I see it hurting our industry is if people don't raise prices in accordance to the increased fuel prices. I don't really see this being an issue though once they get their monthly gas bill and see how much it now costs to replace their equipment with current steel prices.

    I have a strong suspicion that I will be able to quote slightly higher prices this year and land the job because the residential customer realizes how EVERYBODIES cost of living is increasing. Now will the fellow LCO's raise their prices with everyone else?

    Your thoughts?
     
  2. riverwalklandscaping

    riverwalklandscaping LawnSite Senior Member
    Posts: 759

    Well for me, the average lawn will probably cost 5$ more. At 4$ an hour instead of 3, the average lawn for me will take 1.50$ more for the Z alone. At about 6 miles each way, I'll be buring 2 gallons (8$) to get there and back instead of 6. My weedwacker gas will be more, my blower gas will be more. Sure 5$ is not a whole lot, but thats 10$ more I gotta earn to make some margins.

    I hate when the news puts all this about 4$ a gallon on. It drills it into our head that its somehow okay, then when it goes up no one complains because we all expect it. We don't change our habits, and they just jack it up again. I know fuel is very price inelastic, but what is the limit. WHERE ARE MY HYBRID TRUCKS???! haha
     
  3. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    When I say average residential, I mean 1/2 - 3/4 acre.
     
  4. riverwalklandscaping

    riverwalklandscaping LawnSite Senior Member
    Posts: 759

    Ah yeah ok, I do mainly large lawns, so I guess it hits me more per person. But 1$ from 10 people is the same as 10$ from 1 guy. I do agree I hope it gets rid of some of the low ballers... or at least stops some of the huge companies from undercutting us deviously.
     
  5. ATL Lawn

    ATL Lawn LawnSite Senior Member
    Posts: 318

    what he said above. it will cost me about 25cents more a yard for weedeater, 50cents a yard more for Z or walkbehind.. so about $1 a yard more, or about $8-$10 a DAY more..

    would had been more money in my pocket, but i wont pass it on to the custmers, yet..
    unless it hit $5

    but if it hits $5, they may just cancel my anywayz..
     
  6. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,837

    Alarsh I agree...........if people price correctly a jump in gas prices should not be all that alarming
     
  7. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Posts: 613

    I went up on average $3 per place and what I would have bid at $45 last year I am bidding at $50 this year. Take this with a grain of salt as last year was my first in the lawn mowing side of things. I averaged $50 per hour after the year was complete and I am aiming for $55 per hour this year. I have a cheap trailer, a single 52" ZTR, a pushmower, a weedwhip, and a backpack blower, so my inputs may be somewhat less than other mowing companies and I did all the mowing myself. If I had to pay an employee to be with me my #'s would have been shot because I drove all over town for those 7 accounts. I hope to develop more efficient routes this year as I add accounts.
     
  8. Weekes

    Weekes LawnSite Member
    Posts: 107

    I am adjusting for gas increase as are many others.

    I agree that this may help many of us. I think it may kill lowballers and new guys lowballin to start this year and huge LCO's that underbid just to keep trucks running. It happens in small amount every year, this year will only be a small bit worse.

    Seriously tighten you belt maximize your lawns and hold on and I think we will survive. I know I will, I won't let myself down: so I will suck it up, eat out less, and work harder. Things will get better and already with what I've picked up this year even with higher costs I should have my best year yet. Isn't that what is all about making each year better.


    People will always want yard work done and I plan on being there to do it for them. And if I can't buy that fishing boat this year oh well I get it next year when I have lots of new client cuzz some of my competition went under.




    Did you know that during the Great Depression when most companies were failing in America Hershey (forgot his first name) used that time to grow his company. Look at them know.
     
  9. riverwalklandscaping

    riverwalklandscaping LawnSite Senior Member
    Posts: 759

    I agree. Neccessity is the mother of invention. When we can't afford to mow anymore, someone will invent a mower that runs on solar or hyrdogen or somthing who knows.. To bad they can't do that now tho. I don't mind the price increase because I think we need to find less polluting more renewable energy sources. Mowers pollute as much as 6 times what a car pollutes I've heard. I don't smile at that, I just hope all the trees I plant help make up for it...
     
  10. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    Yes but there will still be guys out there mowing lawns for 10 and 15 bucks a pop as they havent a clue and when they go out along comes another idiot doing same thing . I saw a flyer the othr day that said lawns mowed starting at 15 dollars and we give senior discounts so does that mean he will mow that lawn for say 12 bucks :cry:
     

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