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Rate increase

Discussion in 'Lawn Mowing' started by Titans Fan, Mar 9, 2008.

  1. Titans Fan

    Titans Fan LawnSite Member
    Posts: 96

    How are you guys going to handle the soaring gas prices? I am thinking of charging a $5 gas/oil surcharge to every account.

    What do you think?
  2. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    i am going to do a increase but i don't know how much yet!
  3. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    Good luck!!!!!!!!
  4. millenium_123

    millenium_123 LawnSite Member
    Posts: 186

    I am also going up $5 on most lawns
  5. bigw

    bigw LawnSite Bronze Member
    Posts: 1,540

    Yep 3-5$ added to each and every job i land and if you dont like it call someone else...i am not in this business to work for peanuts sorry! With these prices all companies big and small will be adding a increase do to gas even if they hide it in their pricing and are not honest about it. here you go read this.....

    NEW YORK (Reuters) - U.S. average retail gasoline prices have reached a new high of almost $3.20 per gallon and will likely jump another 20 to 30 cents in the next month, worsening the pain of consumers struggling to make ends meet in an economic downturn.

    Gasoline prices are rising sharply as refiners, who have kept prices down in order to compete for sales, become more willing to pass on their higher costs of crude oil, according to an industry analyst on Sunday.

    The national average for self-serve regular unleaded gas was nearly $3.20 a gallon on March 7, up about 9.44 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations. The price has risen 64 cents per gallon in the past 12 months.

    "The price increase was entirely due to the higher costs of crude oil," said survey editor Trilby Lundberg.

    Although the latest price represents a nominal all-time high, when adjusted for inflation it is a smidgen below the record of $3.18 per gallon reached on May 18, 2007, Lundberg said.

    Lundberg said things will likely get worse, with prices at the pump rising 20 to 30 cents per gallon in the next month as refiners begin passing on to customers more of their higher costs for crude oil.

    "Should prices indeed rise 20 to 30 cents, they would vastly exceed previous prices on an inflation-adjusted basis," Lundberg said.

    Refiners since last spring have deliberately refrained from passing on their higher costs for crude oil, in order to compete for sales, she said.

    "But refiner profit margins have become so slim that they will now raise prices to recover their lost margins," said Lundberg. Likewise, she said retailers will also be less willing to hold back from passing on their higher costs to drivers.

    Moreover, prices will also rise because of the return to daylight savings time and the approach of warmer weather, Lundberg said.

    "Spring demand growth will soak up the current surplus of U.S. gasoline and put more pressure on prices," Lundberg said.

    At $3.58 a gallon, the San Francisco Bay Area had the highest latest average price for self-serve regular unleaded gas on March 7, while the lowest price was $2.95 in Cheyenne, Wyoming.

    The average U.S. diesel price was $3.80 a gallon in the latest survey, up 22 cents a gallon from two weeks ago, and $1.02 higher than this time last year.
  6. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Posts: 3,758

    As bad as I hate to I am just going to bite the bullet and absorb it. My area has more LCO's than there are lawns to cut and I know many will do them for half what I get. It sux to have to eat the gas prices too!
  7. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    Fuel costs used to be around the 4% of gross area, and are now in the 6% of gross area. I just used the winter months to make some innovative additions to my mowers that will save time and for the most part compensate for the fuel costs. Besides that, I have worked myself into a position that most of my accounts have hired us for the type of work we do. In fact we just landed a large county job this winter, and were actually the highest bidder. It seems the low bidders over the last 20 years never lived up to their expectations, and they heard about us from the county I have been doing for the last 4 years. We get it done on a timely and quality orientated basis. So fuel costs is not the big deal - just get more efficient.
  8. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Correct Flex.

    I spent the winter raising all my prices between 6-15%. Now mind you, this is the first year in about 3 that I did it, and the minimum increase was $25 / month.
  9. dennys-lawn

    dennys-lawn LawnSite Member
    Posts: 135

    10% Across board for all...:dizzy:
  10. Looking Good Lawn Service

    Looking Good Lawn Service LawnSite Senior Member
    Posts: 272

    diesel is 4.09 in ri

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