Long-term contracts

Discussion in '<a href=http://www.plowsite.com target=_blank ?>Sn' started by thelawnguy, Jun 22, 2000.

  1. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    Anyone out there set to be burned by skyrocketing fuel prices, and long-term plowing contracts? My existing long-term contract is for two more years, I failed to put in a clause to recoup higher fuel prices but on the other hand the fuel use at the job is such my expense will only rise maybe ten dollars a push. Anyone with large contracts, how will it affect yourselves?<p>Remember, first day of summer is past, the days are already getting shorter!!!<p>Bill
  2. Deere John

    Deere John LawnSite Senior Member
    Posts: 327

    I wrote a program to calculate the effect of a fuel increase (or other cost variables) on my actual operating cost. So far, my fuel has gone up by 50% for diesel, but the impact on the operating cost has been about 7%. That's enuf over the course of a year to not leave sitting on the table. I have recurring contracts, and they will get passed the increase, plus maybe a 3% tip for Johnny to make it an even 10% increase. Most people see fuel went up 50 %, and their rates may only go up 10%, so I think they will be ... happy. Ha<br>John
  3. plowking35

    plowking35 LawnSite Bronze Member
    from S.E. CT
    Posts: 1,687

    We just add a fuel surcharge. My customers already have seen it from others, so its no big deal to see one from me. All I know is that diesel is .30 less per gallon than gas,<br>I LOVE MY DIESEL<p>----------<br> Professional Ice and Snow Management <br>Products:Services:Equipment www.sima.org

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