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Wanted some other thoughts on the amount one may charge. I applied 8.5% last June on Non-contract customers, when contracts comes due I increase. My question is the the 8.5% is only covering 1/2 of extra monthly fuel bill as it is up by avg $1,500 month vs last yr. Would another increase be too risky in one year. Roughly costing me monthly 750 dollars a month out of pocket. Thanks Greg

my thinking is good loyal customer, I'll suck it up till Jan 1, take all suggestions
 

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i think it'd be risky, how much are you driving? any way to cut fuel cost? Suffer turnover, drop less profitable yards, pick up new yards near by, and of course quote higher. we can all see a tight customer from a mile away, tell'em you don't have time if they don't like your rate.
 

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Greg:

It looks like you goofed this one up, as you know fuel is now dropping in price around the country, you should have went up to cover your cost back when fuel was up.
Now that's it's down it makes no sence and people will give ya heck over that.

We raised our prices with the higher fuel prices, and now were lowering them.
that's waht a surcharge is.

good luck
 

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I charge a fuel surcharge of 3% for every $.25 over $3.50 on a monthly average to all customers contracts or not. so for a couple months we were charging a fuel surcharge of 6% and now we are going down to 3% for aug. I sent out a letter letting everyone know that our contract pricing was quoted not knowing fuel prices would go above $3.50 a gal. and now in order to provide the same quality of service we are needing to implement a fuel surcharge. we received no call after to letters went out and only like 3 or 4 little notes we sent back with checks, really no problems most everyone understands.

Oh and that 3% covers our fuel increase.

If your surcharge of 8% doesn't cover the increase in fuel you either need higher base or contract rates or you need tighter routes.
 

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Suck it up for this year. It's the price of doing business. I charge a surcharge too but only 3% of the total bill which isn't squat, but it's something. Next year I'm eliminating the surcharge, but will make up for it in renewal increases. I haven't raised my prices on most of my accounts for the last 2 years, so I think I can get by with a 10-15% increase. Hopefully.
 

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No surcharges for me. I raised rates at the start of the season and didnt lose anyone. That surcharge stuff is a big farce and if the customer is on their toes they will expect the surcharge to go away if gas goes down. You think groceries are gonna go down as gas prices ease?
 
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