with gas prices going up...

Discussion in 'Lawn Mowing' started by gstros2, Jan 3, 2008.

  1. gstros2

    gstros2 LawnSite Member
    Posts: 42

    gas in western pa is about $3.19 right now with another probable price hike before the season starts up in the spring. That being said will alot of you raise your prices due to the gas hike? Another question I have is have you done this in the past, and if so how much? Does the customer tend to drop you as a service when you notify them of this?
     
  2. fastcat

    fastcat LawnSite Senior Member
    Posts: 799

    if you dont go up that much your customers should understand. the ones that dont are probaly better off leaving anyway
     
  3. lawnprosteveo

    lawnprosteveo LawnSite Bronze Member
    from Tulsa
    Posts: 1,930

    Will be real picky where I take new yards...will be dropping 2 or 3 that arent close to others...really tighten up my routes even more.
    Get my average price up over $35. Charge ALOT more for hauling anythng off. Will cut out leaf jobs that wont let me just mulch it...no more driving ALL the way out to the dump.
     
  4. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    When I send out renewal contracts to customers, I quote them a price for all the services I offer. THis will take into account the PRICE OF GAS at the time the contracts go out. I have a "gas surcharge" clause advising that price may go up if cost of gas goes over a certain price per gallon. This price is listed and a specific station listed for the cost. This way client knows cost at current gas price level, and cost if gas soars (as it did this year). Most clients understand that it is a part of the business. I haven't had anyone quit me for that reason. In fact, I've had people say they were surprised I didn't raise it sooner. (Contracts also cover my ass in case I need to take anyone to court to collect.) My gas costs were up 30% in 2007 over 2006, and YES, I collected that difference because I made provisions in my contract.

    Mike
     
  5. SpudsM15

    SpudsM15 LawnSite Senior Member
    Posts: 627

    gstros2: I'm putting a surcharge section into my contracts this year. 90% of my work is contracts and the price is set. This year the dump screwed me with a 50% price increase in October :dizzy:
    the surcharge will kick in if gas prices go above $4.15. Not much maybe 2-10 bucks depending on the prop. and on the price of gas
    Also I'm raising prices on mowing by a small .50-$1 since I haven't increased in 3 years on some which is stupid, We're in this to make money if we lose a couple customers to a small price increase to keep the profit atleast the same it's worth it...
     
  6. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,580

    Gas prices around me are up 13% since the last week we mowed this year (1st wk of Nov.), and no sign of them going down any time soon. I will raise my prices in the spring to compensate. It is just good business sense, sure I will lose a few customers, but it sure beats that sick feeling in the back of my head that tells me I am working for free just b/c I am too scared (or dumb) to raise prices.
     
  7. richard1103

    richard1103 LawnSite Member
    Posts: 120

    maybe will be better after 1-20-09 BUSH and Cheney's last day every time bush.chaney or rice goes to middle east oil price go up .I don't think people will stand for another increase for mowing if you went up in 06 or 07 they will mow there own or find someone cheaper
     
  8. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    if you wanna blame someone, blame the chinese for industrializing. they used to ride bikes, now they wanna drive. quit being lazy and leave that to us americans. :laugh:
     
  9. horseman201

    horseman201 LawnSite Member
    Posts: 153


    Did the same thing for 2008.
     
  10. DAR57

    DAR57 LawnSite Member
    from NW Ohio
    Posts: 212

    Can more of you describe your gas surcharge clause? I am hearing more of these included in estimates/contacts on snow removal and now I am wondering if I have made a big BOO-BOO.
     

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