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Adding Fuel Surcharge to the bill

Discussion in 'General Industry Discussions' started by kemmer, Aug 15, 2005.

  1. kemmer

    kemmer LawnSite Senior Member
    Messages: 608

    I am thinking of adding a fuel surcharge to my bill, i was trying to see a good number to use.

    A $30 bill
    6% Sale tax @ $1.80
    2% Fuel Surcharge @ $0.60
    Total $32.40

    Does 2% look good, or should i make it higher?
    I dont know what overboard....i dont want to make it 6%
    @ $30 bill
    3% $0.90
    4% $1.20
    5% $1.50
  2. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Messages: 2,955

    i do $2.00 a cut. becuase i use a gal per home between 2 mower's, edger, trimmer, & blower
  3. kemmer

    kemmer LawnSite Senior Member
    Messages: 608

    so u think 4% sounds good?
  4. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Messages: 2,955

  5. ken0564

    ken0564 LawnSite Member
    Messages: 141

    sales tax on what? labor? i could be wrong but here you don't tax labor. just curious.
  6. JRAZ

    JRAZ LawnSite Member
    from NW
    Messages: 143

    Depends on your state. Here we charge tax on everything.

    I just revised my billing policy to send out to all cst's at the end of the month adding a 3.5% fuel charge on all maintenance invoices. I have been against this idea but thought I would give it a shot. My catch is when we hit 2.70/gallon or higher. Almost there.
  7. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    My analysis is this. I use approx. 1 gal per hour running the mower (just under). An average 1/2 acre lot is .4 to .5 hrs. running time. This gives me 1/2 gal of gas (including trimmer). If I consider 1/8 to 1/4 gal. for the truck, this is 2.09 per stop (based on 2.79/gal.). Now, I am not meaning to re-charge for ALL my fuel expenses, BUT if I cut that cost in half (back to the likeness of spending 1.40/gal. I can live with this, and STILL come out ahead. So, I figure about $1.00 per stop will make a significant difference. Now, I COULD refigure this, and figure it at $3/gal., and that might even be a smarter thing to do. .75 (3/4 gal.) @ $3 = 2.25..divided by 2, = $1.12. So, we are STILL better of to justcharge $1. I think I'm going to do this. $1 does NOT sound like alot to the customer. This is not to mention that much can be made up on future pricing of other sidework.
  8. kemmer

    kemmer LawnSite Senior Member
    Messages: 608

    Yes i do charge tax on mowing, we dont think of it as labor, but more of a service.

    I think im going to make it 2.5%
  9. DLS1

    DLS1 LawnSite Bronze Member
    Messages: 1,619

    I am thinking of adding $1 per mowing starting in September. Please post how your customer responds to you the increase.
  10. PR Fect

    PR Fect LawnSite Bronze Member
    Messages: 1,076

    You need to take heed to Joe's post. Do the math and then you will answer your own question. You need to know your increase is justified. If you just bump your price with out knowing your costs its a shot in the dark, and your clients will know and if could bite you back. We are part time and use around 700 gals of premium gas for the lawn service per year. Truck, blower, mower, ect. At a 50 cent increase in gas per gal over last year we would need to make up $350.00 this season to cover our cost. That's about 1% of our total gross. So if we added 1% to our bills if would be more than enough to off set OUR cost. PR

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