Rising Gas Prices and Raising the per Cut Price

Discussion in 'Lawn Mowing' started by Lawn Cruiser, Jun 2, 2008.

  1. Lawn Cruiser

    Lawn Cruiser LawnSite Member
    Posts: 78

    I am curious what everyone is doing to their per cut price as oil prices keep going up? Not only does it effect the cost of fuel but almost every aspect of doing business. I have thought about holding my prices where they are until gas were I live hits $4.20 a gallon at that point raise the price per cut 10% and if the price continues to go up throughout the summer increase 10% for each additional rise of $0.50. Am I out of line in doing this?
  2. Petr51488

    Petr51488 LawnSite Silver Member
    from NJ
    Posts: 2,372

    I just had a thread on this a few days ago. I plan on adding 5.00 at the end of month on every account if gas goes over 4.00 and diesel goes over 5.00. As of now, the price for regular is 3.79 and Diesel is 4.61
  3. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,899

    Cruiser - do you utilize an agreement for your weeklies?
    If so, might be a bit tricky to change the price on people if you locked in a per cut amount at the beginning of the season. With gas trending the way it was (and is), might have been better off bidding everything $5 high but hindsight is 20/20.
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I would have to agree, if you gave them a good price to begin with they'll balk at you raising them and you'll lose customers.
  5. Lawn Cruiser

    Lawn Cruiser LawnSite Member
    Posts: 78

    I have no contract with my customers and plan on sending a letter to all of them letting them no my intentions.
  6. Hawg City Lawns

    Hawg City Lawns LawnSite Bronze Member
    Posts: 1,072

    my customers have actually started to raise prices themselves.. for the ones that are on account im thinking about adding a fuel surcharge

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