Mowing prices have to go up, No?

Discussion in 'Lawn Mowing' started by newbomb, Mar 4, 2005.

  1. newbomb

    newbomb LawnSite Senior Member
    Posts: 391

    As others have commented, Fuel prices are soaring here in Baltimore almost over night. Fueled the company rollback today and $100 didn't fill the right tank. I plan to raise the rates for most of my existing accounts and raise my general pricing at least 25% for all new business. I can't see any other way. I don't think all the people who are getting rich from the oil market will be happy til we're paying $3.00 a gallon. Has anyone else decided on a course of action? With prices for everything out of sight, I don't think 25% is out of line. Who knows how high fuel will be by August?
     
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I dont think you can go from $80 to $100 and blame it all on gas.
     
  3. Eddie B

    Eddie B LawnSite Senior Member
    from gone
    Posts: 859

    They don't have off-road gas do they? I know they do it here for diesel. Not paying road tax on gas would save some big $$$ at the pump.
     
  4. Olylawnboy

    Olylawnboy LawnSite Senior Member
    from Oly Wa
    Posts: 312

    The papers here in the NW said yesterday for us to see a .24 increase in the very near future. I expected gas to go up today and it didn't but I filled all our machines and jugs just incase it goes up tomorrow. I don't understand the diesel prices. They have been .50 more than gas here. Funny thing though, I don't seem to hear the truckers complaining loudly. What gives there?....
     
  5. Eddie B

    Eddie B LawnSite Senior Member
    from gone
    Posts: 859

  6. Eddie B

    Eddie B LawnSite Senior Member
    from gone
    Posts: 859

  7. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    25% due to an increase in fuel costs?


    Good luck.
    I don't think it is possible to claim fuel has added 25% to operating costs,2% maybe,25%, hmm................
     
  8. newbomb

    newbomb LawnSite Senior Member
    Posts: 391

    My 25% statement was in accurate. I have a large group of town homes I mow all at one time. I got them 4 or 5 years ago at $15 each per week. (I know that is low but they are all together and turn a nice profit for the time spent.) I have not raised them ever but this year they're getting bumped to $20. Hence the 25%.

    In the past I have priced my work a little low because I wasn't depending solely on mowing for a living. This year that will change so I must be diligent about charging enough to make a living. The point being the higher pump prices were just a reminder to me not to work cheap. No one can afford to now.
     
  9. Olylawnboy

    Olylawnboy LawnSite Senior Member
    from Oly Wa
    Posts: 312

    Like it's been said by dv and lawnman, 25% would be too much at this point but I think we all will have to come up with a sliding surcharge in the very near future as I think gas prices will make a new "peak" this year. And if it's going up this much this early in the year, we may see see some real problems ahead this season. I like to hope not, but it's not looking good....
     
  10. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,137

    Gas is a fairly small part of my overhead, around 10%. So if gas goes up 25%, it only raises my cost my 2.5%. No big deal really.

    The only way I would raise a customer 25% is if I didn't want them anymore, or if I accidently underbid it the previous year. I raised about 1/2 of my customers about 6% last year and will do the same with the other 1.2 this year.

    So my $10 lawns will now be $10.50 and my $15 ones will be $16. :D
     

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