lawn maintenance and gas prices.

Discussion in 'Lawn Mowing' started by richard coffman, Feb 17, 2003.

  1. richard coffman

    richard coffman LawnSite Senior Member
    Posts: 341

    :rolleyes:
    I don't know what to think about this, I've been gearing up for the new season and watching the news. they say that gas is allready $2.00 a gal in some area's allready, and with the upcoming war, they predict that gas will be $3.00 a gal by spring. how's everybody here going to prepare for this? With the horable no snow season here in utah, it's shurly going to pinch my pocketbook this year. shurly I'm going to raise my prices a bit to meet this challenge. what's are you guy's doing to meet this demand?

    Richard Coffman/Owner:rolleyes:
     
  2. lawnagent

    lawnagent LawnSite Senior Member
    Posts: 529

    I sent out a note with my newsletter this month stating that prices would increase this year by $5.00 a yard. Now not all of that is gas price. Its both gas price increase plus the fact that I have not raised prices at all in about 3 years.:blob3:
     
  3. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Posts: 916

    I put a note in the proposals that if gas rises above 2 dollars per gallon, there will be a surcharge added to appropriate service. I have been putting it on there all the time maybe i might have to put it into affect this season due that the prices here are already 1.75 and it is always higher in the summer. Iam scared that it would rise to 3.00 a gallon my most economical vehicle gets 10 miles per gallon.
    Jason
     
  4. PR0 TURF

    PR0 TURF LawnSite Bronze Member
    Posts: 1,089

    Just communicate with your customers...they'll understand where your coming from. Have a stipulation regarding it in your contracts. Thats our plan...let them know there is a possibilty the price may go up...dont just let them know mid-season that there is an increase...keep them informed!
    :blob4:
     
  5. o-so-n-so

    o-so-n-so LawnSite Bronze Member
    from Alabama
    Posts: 1,218

    8.5 working mpg on my 2002 2500HD 4X4. That hurts.
    4X4...8.1 ci...gets the job done.
    I like the "surcharge" idea to get through the gas thing. Maybe itemize it on the invoice so the customer knows exactly what the extra charge is for. I don't think any one would have a problem with that.
    I do a lot of windshield time in season. Might try to tighten up might route some. Trim some FAT.
     
  6. Shady Brook

    Shady Brook LawnSite Bronze Member
    from Indiana
    Posts: 1,517

    I am hesitant to use a gas surcharge.

    1. what if prices go down, will you go back to original price? And if you do, where do you draw the line before going back to that price? Will the customer know the threshhold, or will they be calling you when prices drop. Seems like possible problems there.

    2. I don't know of any other businesses that charge me in the manner. The mail will come, and they will not add a surcharge to my stamps. The power companys that maintain lines will not add a surcharge, nor ups, or other businesses that transport goods using fuel, or making goods using petroleum products.

    Businesses may raise prices, but I have not experienced surcharges.

    I would rather raise rates $1 a lawn, or whatever you think will cover the cost of gas. If gas prices do not go as high, apply the extra money to your outrageous insurance bills.

    Jay
     
  7. wojo23323

    wojo23323 LawnSite Senior Member
    Posts: 608

    Since I haven't raised prices in 3 years, everyone gets a 10% increase. That covers infaltion over 3 years and the rising gas costs now.
     
  8. Shuter

    Shuter LawnSite Bronze Member
    Posts: 1,171

    I decided to start off the season with no increase. I am getting a pretty good price for the lawns I do know. Most customers would understand if prices rose so much. But from last season to this season gasoline is about 30 cents higher now. If I am only using about 20 gallon per week it is an increase of about $7.00. To me it is a cost of doing business.
     
  9. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    Gas price
     
  10. How true Soupy
     

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