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coping with rising fuel prices

Discussion in 'Lawn Mowing' started by fullburn, Aug 31, 2005.

  1. fullburn

    fullburn LawnSite Member
    from ct.
    Messages: 42

    I feel the need to adj somehow for the rising price of fuel, can no longer obsorb it. Am going to put letter with this months billing an make adj, but not sure wich way is better to go, raise price per cut or add fuel surcharge per month.was thinking 5 dollors per month. looking for opion, also with fall aproaching an massive gas usage in clup I was considering just raising the labor rate per person rather than a fuel charge. what do you think?
  2. WoodBrothersLC

    WoodBrothersLC LawnSite Senior Member
    Messages: 418

    We're going to be doing the same this month as well. We are currently serving 33 lawns and a 2.5 acre cemetary a month and so at $5 more a month per lawn we'll have $165 to cover the extra gas and we'll probably add $10 or so for the cemetary.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    I would raise more than just $5 a month and did last month for the reason that we don't know where fuel prices will settle out. Customers don't like getting increases every couple months, but I only had 1 complain about the increase and I just told them I held prices as low as I could for as long as I could and the "new" price will be good for the rest of this yr and probably barring any unforseen circumstances next yr as well. The unforseen circumstance is my way of getting out of or raising prices again if needed and it pacified the customers.
  4. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    i have conracts to mow for x amount of dollars for the season..... how do I change the price when we both signed a contract?
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    If you don't have a clause in the contract to cover extenuating circumstances, your stuck. Might be a good Idea for some new contract next yr. and have an attoney that practices in business law prepare them so that you have all YOUR bases covered.
  6. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    i figured that was the case or something like that.... oh well guess ill have to wait till next year.. used a generic conract this year, next year ill be able to get some legal help with it....thanks....
  7. bobcatnj

    bobcatnj LawnSite Senior Member
    Messages: 687

    yea i dont have a gas surcharge in my contracts either. i never thought the prices would be like this. i havnt yet, but am thinking about just charging everyone and see what happens. anyone in my situation? and what have u done?
  8. Potomac Lawns Inc.

    Potomac Lawns Inc. LawnSite Senior Member
    Messages: 412

    well are gas prices here just hit an altime high the cost for 1 gallon of 89 octane at the local safeway 3.46 wawa is still at 2.89 but i guess that will change.
  9. All Seasons Landscaping

    All Seasons Landscaping LawnSite Member
    Messages: 42

    yeah, gas prices here jumped $.60 in the past 16 hours, with no end in sight. cheap (as of an hour ago) was up to $3.18, and premium is around $3.90 at some stations. surcharges are definitely something to consider (no matter how you add it in), and it should be sizeable enough to cover this rapid an increase.

    side note, i was looking at plows to get back into plowing this year, really debating that now...
  10. christoff

    christoff LawnSite Member
    Messages: 139

    1.199 a liter in western Canada for regular. :angry:

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