Anyone charging a Fuel Surcharge Yet?

Discussion in 'Lawn Mowing' started by RBatten, Apr 21, 2011.

  1. RBatten

    RBatten LawnSite Member
    from FL
    Messages: 101

    Gas is quickly approaching $4 and diesel is already over $4, so has anyone implemented a Fuel Surcharge? If so what did you charge and how did it go over with the customers?


    KINGMADE LawnSite Member
    Messages: 237

    Not yet but it gas hits 4 I will implement an 8% fuel surcharge. I think it will go over fine for the most part.
  3. ashgrove landscaping

    ashgrove landscaping LawnSite Gold Member
    Messages: 3,529

    I'm paying $4.10 at the moment and it's onl going up so yes the fuel surcharge and extra time charge is in full effect. $45.00 to fill the Z.

    KINGMADE LawnSite Member
    Messages: 237

    We are down around 3.72 for the cheap stuff.
  5. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    We charge $2 per mowing stop. I've been doing this ever since gas hit $2.50. Not one complaint.
  6. lukemelo216

    lukemelo216 LawnSite Bronze Member
    from ...
    Messages: 1,267

    Yes, i made the decision today to implement a fuel surcharge on all work besides seasonal contracts. Those will remain in tact at the agreed upon rate, but we will no be using a 4% fuel surcharge for all mowing customers. All landscape work will have a smaller charge worked into the bid.

    I think it will go over just fine. Figure on a $30.00 per week account, thats $120.00 per month, adding in 4% for fuel will be there bill will be an extra $5.

    I dont have it in my contract or anything, however; i will send out a letter explaining this additional surcharge. And I wil also explain that it will go down when gas goes below $3.75 (as that is what I budgeted fuel at for the year). I was eating the additional .15-.24 per gal I was paying but with mowign getting ready to ramp up i cant.
    Last edited: Apr 21, 2011
  7. jsslawncare

    jsslawncare LawnSite Bronze Member
    Messages: 1,673

    No, I just went up on my prices. No one complained. $5.00 increase.
  8. yardguy28

    yardguy28 LawnSite Platinum Member
    Messages: 4,463

    not using the fuel charge yet but soon will be.

    it is going to go over fine with my clients. they are already aware of it. they like it because it keeps me from raising prices. and if gas would not hit the $4 a gallon mark or as soon as it would go under $4 a gallon again no fuel charge.

    but for me it has to stay $4 a gallon for 2 weeks or more out of the month for me to use the fuel charge. otherwise i'm not gonna bother.
  9. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    In Vancouver, B.C. our gas works out to about $5.55 a gallon.

    We pump and pay by the litre(quart)

    We really took a beating the last time gas went really high a few years ago.

    For the past two years I have had it written in our contract that "if gas goes above
    $1.30 per litre, then we will charge 3% on the gross before taxes." Today it's $1.38/litre

    Gas went above $1.30 back in February. We pay alot for taxes here.
    That's one way we are paying for the Olympics that we had.

    I just got paid from one HOA and their manager deducted the gas levy from the bill.
    There was no explantion or even a note with the cheque.

    I talked to the HOA President, and he said they never approved the manager taking money off of our bill.

    So, now I am in a dispute with the manager. I have been operating for 15 years.
    I don't like dealing with many of the property managers out there!

    I wrote about this in the general landscaping forum a couple days ago.

    I hope I can resolve this problem.

    Maybe I can run my equipment on my indigestion.
  10. watatrp

    watatrp LawnSite Senior Member
    Messages: 511

    I sent out letters for the season in late February stating that prices for this year were based on $3.50 per gallon. Anything above $3.50 results in a fuel surcharge. I don't have a set amount but just a weekly surcharge that covers just the increase in cost due to fuel only. Example-if I use 3 gallons of fuel to service a customer and gas is $4.00 a gallon, the difference between the prices is 50 cents per gallon. The customer gets a $1.50 fuel surcharge for that week.

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