fuel surcharge?

Discussion in 'Lawn Mowing' started by skurkp, Aug 14, 2005.

  1. skurkp

    skurkp LawnSite Member
    Messages: 248

    I am being asked to bid on a couple of properties. 1@ around 3000 per month and 2 @ 175 per month. Each property will be sreviced 42 times per year. I would like to start to charge a fuel surcharge so that if fuel goes up by 2-3% or more the surcharge would be added. If I bid a job and sign a contract and gas goes to $5 per gal. then I could loose profits. Is anyone presently doing this and is this accepted business practice? :confused:
  2. Itsgottobegreen

    Itsgottobegreen LawnSite Silver Member
    Messages: 2,177

    I got a "The contractor may add a fuel surcharge" in my contracts. Haven't needed it yet. But its there just in case.
  3. Eclipse

    Eclipse LawnSite Bronze Member
    Messages: 1,149

    I know quite a few irrigation guys doing it around here but no maintenance companies as of yet.
  4. 2k1yzfr1

    2k1yzfr1 LawnSite Senior Member
    Messages: 539

    I've had a $3 fuel surcharge added to every monthly statment for the past 5 months. I service 98% residentials and noone has said a thing about it. The extra $200-$220 a month covers all the extra expense on fuel.
  5. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    We charge a $1 fuel surcharge per mowing on all accounts excluding pre-paid. It will soon be going to $2.........
  6. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,004

    we added 10 % last year mid year. this year just raised everyones price couple dollars more above surcharge. prob raise them again next year.
  7. TClawn

    TClawn LawnSite Silver Member
    Messages: 2,036

    I am going to be raising my prices 10% to cover growing expenses, I have been eating the gas bill for awhile, and it is going to be part of price increase, so 10% instead of 7%.

    when I first bid most of these accounts, gas was at a mere $1.80 a gallon. it is $3.00 for regular today, and will probably keep going up.
  8. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    we have a fuel adjustment clause in all our service agreements. THis year the trigger for a fuel charge is 2.10 per gallon. Right now we are at 2/50 per gallon. So the 40 cent/gal increase is multiplied times the fuel we allocate to each property. Have never had a complaint about the fuel surcharge but this month and going forward, the charge will not be small as in the past so we'll see if anyone whines about it. Let them whine. Profit margins are thin enough with mowing and I will not eat these increased costs.
  9. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    I've included a fuel surcharge (ranging from $5 - $30) every month for the 05 season. So far, not one peep from anyone.
  10. QuadRacer041

    QuadRacer041 LawnSite Senior Member
    Messages: 365

    I started ser charging people $5 per month last June and just raised it to $7. That will proably go up again as the gas price's continue to rise.

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