Gas Prices???

Discussion in 'Starting a Lawn Care Business' started by RPM Lawn Care, May 24, 2007.

  1. RPM Lawn Care

    RPM Lawn Care LawnSite Member
    Messages: 13

    What are you guys doing about the rising gas prices? Im in the Columbus Ohio area and gas is about 3.50 per gallon. Im trying to figure out how much to add as a surcharge for the fuel. I have 3.00 per gallon figured into my price, but gas is higher then that now. Would it be smart to add the surcharge, and if so, how are you guys figuring it?
  2. Grass Kickin

    Grass Kickin LawnSite Member
    Messages: 167

    I am thinknig about this too. Alot of my work is contract work and the price has already been agreed upon at signing. I can't raise it until people resign. I normally try to cut every week no matter what but I'm finding myself skipping some lawns if they don't need a cut. I don't like to do that but now I have to.
  3. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    I'm filling up my mowers and truck just like I always do. Doesn't anyone watch the news or read a newspaper anymore? We all knew what gas prices were going to do a couple years ago... So if gas prices are such a large part of your expenses, then why didn't you plan for them. It's not really like these "high" prices snuck up on us overnight... I guess I just figure that there is nothing that i can do alone to lower gas prices, so you might as well just plan for them.
  4. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Messages: 1,330

    I dont care about gas prices...I want rain!!!
  5. d&rlawncare

    d&rlawncare LawnSite Senior Member
    Messages: 741

    Yeah but wait til the first big storm of the season hits on the east coast or in the gulf. You think 3.50 is high wait til it goes over $4.00. When most of us bid in Feb/March NOBODY was thinking or talking about $4.00+ per gallon. $3.00 yes but over $4.00.....NO. EVERYONE needs to pass the cost on. I sent out a letter last week with a surcharge notice of 10% on ALL my commercial properties for when gas is over $3.00 a gallon. I also included a surcharge rate of 12% on gas over $4.00; and 14% on anything over $4.50.

    I didnt like the idea of doing it but think its a fair way to handle it. Yes they are all on contracts at a fixed rate. But my contract also states I can give them 30 days notice and vice versa. Next year Ill have to decide if I want to make the surcharge a part of the contract or just figure in the cost of gas at a very high rate..I like the surcharge myself. This shows the costumer that your not overcharging them....
  6. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    Um... I bid everything so far this year with $5.00 a gallon in mind. I don't know where you were getting your news from, but the scuttlebut around here was all pointing toward even higher gas prices this year. I guess I'll go ahead and say it now then... next year you might as well go ahead and bid with $5.00 a gallon gas in mind. I'm not saying it will happen... but you might as well go ahead and plan for it. It's all about planning. I pass my costs on with a yearly increase for clients. New clients get new rates that relfect my new costs. I think surcharges are kind of goofy and hard to keep up with. Just raise the price per service and forget about it. I have a hard enough time remembering all the other stuff I have to remember, so I don't need a % surcharge figure to add to my workload. I listened to all the meteorologists in February when they said it would be an active storm season and I took it into account. I don't think $3.50 gas is all that high compared to other parts of the world. Sure, Venezuelans get it cheaper, but they are 2 steps from becoming a full fledged communist state. I'll take democracy and $3.50 gas over 12 cent gas and a dictator.
  7. mow2nd

    mow2nd LawnSite Senior Member
    Messages: 603

    Sell the mowing business and only do Applications, It's so nice to only use $75 a week for gas. Mowing sucks.........probably wouldnt be so bad if u people would stop lowballing.
  8. Vikings

    Vikings LawnSite Bronze Member
    from canada
    Messages: 1,657

    I'm scart to drive my Sierra I have to slum it in my Ford Ranger :(

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