Price Increases due to gas prices?

Discussion in 'Starting a Lawn Care Business' started by rockandroller, Aug 3, 2004.

  1. rockandroller

    rockandroller LawnSite Member
    Posts: 121

    :cool:

    Hey Ya'll. I'm new to the forum so please cut me some slack. I'll try not to waste all the veterans time with my newbie questions but I gotta ask about this. I'm in my second year of the lawn biz, my first year full-timing it. Things have gone really well thus far as far as securing a solid client base. My question is this: Should I charge more now that gasoline prices are still hanging high, or is that going to upset my new customers who are still getting used to me?? If the consensus is yes to price increases, how much more should I charge?? Hope this hasn't been asked to many times. I tired the search feature first but had no luck...
     
  2. BW4486

    BW4486 LawnSite Member
    Posts: 244

    i've read several threads about it, and most people don't see anything wrong fuel surcharges.

    Let me ask a question. If prices fell below normal would you charge less?
     
  3. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    i added a fuel charge to my clients this year. i figured out how much more it was costing me in fuel (this requires some record keeping) and then split the costs up amongst my customers. I built in a little more cushion than absolutely necessary to make sure i covered all my bases. mine worked out to +$2.25 weekly fuel surcharge.
     
  4. Groundcover Solutions

    Groundcover Solutions LawnSite Bronze Member
    Posts: 1,254

    My lawn service increased it services charges $2 after two weeks. I was fine with it because i know how much fule costs to operate equipment all day all of wich requiers large amounts of fule. If you did not plan on gas prices being so high it can truly hurt your bottom line. I see no problem with it and I gladly pay the charge as long as there work is good and timely as it is.
     
  5. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I just raised everyone $1 across the board. I suppose I could have gone higher, but $1 covers it for me. Only had one person complain, but they paid it.

    I'll only drop it if prices were to drop, say 50 cents or so from where they are now ($1.90-2.00 around here as of now)
     
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Rockandroller,

    Here is a quote from this post that might be helpful.

    "I'm sending all of my customers a postcard this week informing them of my new "Fuel Charge". Here's what it will say:

    Dear Customer,
    As many of you may have noticed, fuel costs are rising dramatically. Unfortunately, my business is affected adversely by these price increases. I have tried to maintain my pricing at the current levels but I can not continue to absorb these rising costs. Starting with your June statement I will be adding a “fuel charge” to your monthly bill. I will base this fuel charge on the price of “regular gas” at the Chevron Convenience Store located on the corner of Spring Hill Dr and Linden Dr. This is the gas station closest to where I live and where I fuel up each morning.

    Effective with your June statement the Fuel Charge will be:…… $2.00 per month
    When regular gas reaches $2.25/gal the Fuel Charge will be :…..$2.25 per month
    When regular gas reaches $2.50/gal the Fuel Charge will be :…. $2.50 per month
    When regular gas reaches $2.75 /gal the Fuel Charge will be :…..$2.75 per month
    When regular gas reaches $3.00/gal the Fuel Charge will be:……$3.00 per month

    If gas prices come down to $1.75/gal I will be glad to discontinue the Fuel Charge.
    Thank you for your understanding in this matter."
     
  7. rockandroller

    rockandroller LawnSite Member
    Posts: 121

    Hey everyone,

    Thanks for all the feedback. This is a great site!
    I think it's time to add a fuel surcharge.

    :cool: Hasta luego
     
  8. Groundcover Solutions

    Groundcover Solutions LawnSite Bronze Member
    Posts: 1,254

    Your welcome,
    I got about the same letter from my lawn guys as gopher put up. Just with out the brack down like they had.
     

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