So how much did increased fuel cost you last year?

Discussion in 'Lawn Mowing' started by Richard Martin, Jan 30, 2006.

  1. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Now that a lot of us are getting our numbers together let's take a look at exactly how much increased prices of fuel cost us.

    My mower fuel went from 2.5% of gross to 3.1% or .6% total.
    My vehicle fuel went from 1.5% of gross to 1.7% or .2% total. The reason it didn't change like the mower gas was I was able to increase my truck mileage by 2 MPG with a rear gear change.

    In any case I saw a total of .8% total increase. Given my average mowing price of $49 a yard I would have to increase the price 49 cents to cover my increased costs. Since I took the high price of fuel as an opportunity to raise prices an average of $5 on over half of my customers last year I think I pretty well got it covered without a fuel surcharge.
     
  2. jtkplc

    jtkplc LawnSite Silver Member
    Posts: 2,646

    I did more business than last year so it's hard to say. But I did read a headline this morning that said:

    Exxon Mobil posts nearly $100 Billion quarterly revenue, up 20%

    Now I really see no need or $2.40 a gallon...
     
  3. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    Last summer I did not raise my prices.

    This year I am going to.

    My prices are already low, so I am including a general price raise but saying it is for the gas prices.

    Along with that I am going to offer payment plans based monthly, seasonally, and yearly.

    Tim
     
  4. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983


    Good post Richard.

    My FUEL EXPENSE went up 33% (in dollar amount) in 2005 compared to 2004.
    As a percentage of GROSS it went from 7.4% in 2004 to 8.5% in 2005.
    My GROSS was up about 15% in 2005.
    I raised prices at the beginning of the season (before gas jumped). When gas jumped in put a $2 per stop surcharge to take care of fuel. This took care of the gas spike expense.

    Even though gas was up along with other items (rent, etc) NET was up considerable over 2004. All in all a pretty good year! But it could have sucked if I didn't put the Fuel Surcharge on when I did.

    Mike
     
  5. slebeau20

    slebeau20 LawnSite Member
    from USA
    Posts: 103

    I didn't raise my prices last year. My customers buget the total for the year. Now this year they'll get hit with the increase. So far not one customer has said a thing about it. Small yards are going up by $5.00 and the bigger lawns will increase $10 per acre.
     
  6. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    My numbers are the same as you gents. 34% in dollar amount. Everyone is getting a bump and they all expect it. I am not going to be unreasonable in my raises but something has to even out. I hear my fert prices are also taking a big jump, how much is yet to be determined.
     
  7. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    I did like you did. I got the fuel increase while the getting was good....
    While fuel was near $4 a gallon.

    I didn't force an increase on anyone. I didn't have to.
    Gas prices like that are something everybody understands.
    So everybody accepted a voluntary increase.

    Long story short, the voluntary increases covered all of the gas gouge.
    Plus, because of this I will only be making a small annual increase on most.
    This is one year that I'm doing it purely for the sake of increasing.
    I increase everybody just a little every year just so they know to expect it.

    Everyone else gets a raise. Why not me?
     

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