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Rising Gas Prices

Discussion in 'Starting a Lawn Care Business' started by RPM Lawn Care, May 28, 2006.

  1. RPM Lawn Care

    RPM Lawn Care LawnSite Member
    Messages: 13

    Hey was wondering what some of you are doing to offset the rising gas prices. I want to charge a fuel surcharge, but how much? Should I use a % of the total charge on each property or just come up with a set price for all customers? HELP!!!!!
  2. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Messages: 2,572

    our fuel prices are down about $.20-.30........but I add a 5% surcharge any time I pay more than $2.29 for fuel...

  3. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    If you bid it properly, and knowing this year, based on last year that fuel prices were very unstable, you shouldn't have to add a surcharge, it should already be covered in your cut price.
  4. kc2006

    kc2006 LawnSite Silver Member
    Messages: 2,443

    Yup. Any residential accounts I gained this year were 2 dollars higher then I would of priced in the past, more then enough to cover me up to $4.50 a gallon. Any of last years places were already priced at 2.50 a gallon so I'm safe there too, but I did raise them all up a buck.
  5. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    PLUS, think about this,

    Nobody, our clients included like "surcharges", so if you do it you run the risk of losing good clients.
  6. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I agree, I kept my prices the same all of last year but I raised them by 5 dollars for the most part this year and the extra $5 / yard helps a TON. I have less customers but overall my deposits are higher than last year's, thou it's only May it looks like it might be an ok year money-wise after all, I'm ahead of last year so far by 2,500... Not the most amazing figure, but that's still +500 / month.

    I didn't raise all of my customers, either... But more than a few, and anyone new came on board as well.

    That's my thing, I quote you a straight price, be it 35 or 40 or whatever, it is a straight price rounded to 5 or 0 and once quoted, it does not change for the rest of the year. So for those customers worrying about the budget, they know I don't raise my prices on them mid-season so the world can do what it wants but my price to them stays rock steady all year.

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