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What to do about Gas Prices

Discussion in 'Lawn Mowing' started by gumby1, May 19, 2004.

  1. gumby1

    gumby1 LawnSite Member
    Posts: 24

    I am considering sending a note along with my next billing that reads something like:

    Do to the high gas prices, a 2% surcharge will be added to your bill. Our pricing is based on gas prices around $1.50 a gallon. We will only be charging the surcharge when gas prices are over $2.00 a gallon.

    Do you think this is a good or bad idea?
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    My clients probably wouldn't mind it, but I dont think my clients ever read the invoice anyway
  3. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    I' m going to sell my gas powered mowers and get electric ones.:laugh:
  4. gr8cutter

    gr8cutter LawnSite Member
    Posts: 91

    So if gas dropped back to 1.00 a gallon would you give them a refund? I am complexed about the gas surcharge. How much does it effect your profit margin?
  5. gwwilson

    gwwilson LawnSite Member
    Posts: 89

    Fuel Tax Credit. Fuel that a business uses for off-highway equipment or machinery is entitled to
    a fuel tax credit. For example, if a landscaping company purchases fuel to power its lawnmowers
    or other equipment, the company is entitled to a credit.
    Its about .48 between state & federal taxes.
  6. gumby1

    gumby1 LawnSite Member
    Posts: 24

    To gr8cutter: when your average gas bill is about $1000 a month, the $.60 a gallon (what we are currently paying over the $1.50 a gallon) comes out to be about $400. And to answer your first question the answer is NO, if you read my first post I said if the gas went over $2.00 a gallon. You see I have eaten the cost of the majority of the increase. So to answer your next question (if it was a question or you just being a smartie!!!!) yes i would consider lowering in some way the price if the gas went below a $1 a gallon.

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