Price increase due to fuel cost?

Discussion in 'Lawn Mowing' started by Kykutter, Feb 24, 2008.

  1. Kykutter

    Kykutter LawnSite Member
    from ky
    Posts: 20

    Anyone raising prices this year if gas prices stay where they are right now?

    If so is it best to go up a % across the board or just a flat $5 or $10 on your larger accounts? My accounts are priced all over, from $25 minimum to $500 commercial,as i am sure alot of yours are as well.

    Gas is now about .25 higher than at the end of last season.

    Trying to stay away from the $33.25 or the $27.75 price that a % increase would cause.

    By the way...first post for me.Nice site.

    Thanks
     
  2. bnorton

    bnorton LawnSite Member
    Posts: 140

    Welcome to LAWNSITE! Good to see someone elso from good ole' KY! I am increasing based on % this year. About 6% will cover the gas increase I believe but could always go up more later.
     
  3. Fishhd

    Fishhd LawnSite Member
    Posts: 17

    I brought this issue up yesterday.(new to site as well) No one seems to care. A 20 dollar lawn will always be a 20 dollar lawn.

    My prices are going up. my minimum is 35. I'm going 30 is 2, 40 is 3, 50 is 4, and over that 10%.

    When will our great leaders of this country realize that fuel cost are destroying our country and do something about it. :realmad::realmad:
     
  4. LawnscapesUnlimited

    LawnscapesUnlimited LawnSite Member
    Posts: 12

    Sane here we are going up a flat rate of 6% on all accounts.
     
  5. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    Gas was $2.75 last year and $3.10 now. That is 11.3% increase. If you have a $50 cut and only increae $5.00 that is only 10%. Insurance, grocerys, equipment maintance, hair cuts, steel prices are also up. You better get out of this business before your children starve to death. By the way your taxes will be going up next Jan. 1st. Not to worry, lawn boys are like cockroachs. No matter what happens there will always be a lawn boy.
     
  6. Fishhd

    Fishhd LawnSite Member
    Posts: 17

    Someone who understands.:clapping::clapping:

    I would be better off :walking: around town with a push mower.
     
  7. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    Your price should go up atleast once every 2 years. But don't try to justify it by just the price of gas going up. As I said in Fishhd's thread if a rise of $0.50 in gas is going to put a big hurt on you, get out now. If your mower uses say 1 gal per hour, it only costs $4 more per day (8 hr day) in fuel to run that machine, no big deal. Now I think increases are more then justified due to equipment prices increasing, workers costing more, trucks, trailers, etc. I try to add 5% per year to clients unless they're multiple accounts side by side in groups of 4 or more.
     
  8. Fishhd

    Fishhd LawnSite Member
    Posts: 17

    OK, I don't understand why everyone has there head in the sand.

    Last Feb gas was @ 2.20/gal now it's @3.39/gal and expected to be at or above 3.50 by May. That's a 65% increase. I don't know where you live but I live in a rural area and It's a long way to get from point A to B. Fuel is 50% of my cost.

    Diesel fuel will be @ 4.00 this summer. What % of that comes out of the Truckers pocket. How about the little farmer trying to run his tractors.

    How many small Bus have to suffer before something is done to stop the insanity.:hammerhead:

    Thanks for the rant. I needed that.:angry::(:D
     
  9. deason

    deason LawnSite Member
    Posts: 236

    We are adding a "surcharge" to all residentials that are 1 year old and older. All new accounts will have the charge built in. This will help us re-capture 50% of the cost of spiked fuel prices up to $3.50 per gallon (gas).

    We seem to think that the surcharge will be better accepted by customers rather than a price increase. The surcharge can be adjusted at anytime to accomidate rising or falling prices during the year. A price increase on services cannot be adjusted throughout the year. By adding the surcharge rather than increasing prices, we have the ability to monitor and cover fuel expences and adjust per our costs.
     
  10. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    I evaluate my prices every two years in order to maintain a profitable business and this year I'm increasing my prices 7.5% to cover gas and general cost of living expenses. I lock my rates in for 2yrs so the actual increase is 3.7% a year
     

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