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Surcharges for gas prices

Ocutter

LawnSite Senior Member
Location
S. Jersey
I asked about this topic last summer and wanted to ask again. Now that you know gas prices are going to go up will you add in your contracts and agreements a surcharge if gas goes beyond a certain price. I have raised my prices to accomodate up to $1.55, (its now $1.33 here). I can always adjust landscaping prices a little, but what about you guys and gals that rely only on lawn cutting.
 

Michael Fronczak

LawnSite Member
Location
Rochester NY
I figured it out last fall for snowplowing, with the amount of gas I went throught (20 gal) per trip, the increase cost me an additionl $ 150 through season, divided by all contracts I would have had to raise seasonal prices by somthing like .5 % to account for that(nothing), I normally raise my prices every year anyway so it didn't matter. I would assume roughly same percentage for lawn work, I also raise that so I don't worry about it.
 

Richard Martin

LawnSite Fanatic
Location
Greenville, NC
I average 92 cents in fuel and oil per lawn cut and that includes 2 cycle oil and oil changes on the mowers. My average price paid for gas was 1.539 this year. My average service is $33.35. Even if gas were to go up a dollar a gallon it still wouldn't cost me 50 cents more per lawn. I cannot justify using the price of gas as a way to charge a surcharge. If gas goes up 20 cents what am you going to do? Charge them a 8 cent surcharge? You simply treat increasing gas costs as you would any other cost associated with any business. I raised prices on almost 50% of my customers this year by 5 dollars a cut. That should cover any increases in gas costs. In fact, the additional money received as a result of the increase will pay for the entire year's gas and oil cost.
 

bob

LawnSite Platinum Member
Location
DE
Last year, Chem-Lawn added a $1 fuel sur-charge on every visit they made.
 
If I was able to guess how much gasoline will cost 3 months from now, I sure wouldn't be a L.C.O..:)Your operating cost most often always go up,not down. The best way is a general price increase all accross the board. Don't use gas as an excuse. Use your operating cost as a reason to raise prices. How much, it's very rare to loose a client if you only raise your price up a $1 per cut if you use that system, or $3 to $5 for a monthly billing system.
John
 

1st impressions

LawnSite Member
Location
Chicago,IL
When gas hit $2.25 a gallon last summer I put a surcharge
on my maintenance accounts that lasted approx. 2 months.
Only 2 customers balked. I don't use contracts so maybe
it was easier for me to do.
This year I'm just going to raise my seasonal rates to reflect where I think prices are going to go. If they climb over $2.00 a gallon again I will consider imposing the surcharge again.
I work hard for my money. I am just not willing to eat an
extra .75 a gallon. Many other industries saw no ploblem
imposing a temp. hike. I know the airlines and U.P.S. did.
People understand.
 

MOW ED

LawnSite Fanatic
Location
N.E. Wisconsin
No surcharge but rate increases for multiple reasons, along with gas , insurance, maintenance, advertising, parts, new equipment and oh ya I forgot to mention - PROFIT.

None of the above have come down except profit, we will change that this year or I'll have more free time.
 

awm

LawnSite Gold Member
Location
stanfield nc
Around here going up is tough with competition
and such.But they all fussing about gas prices
so if i ad 5 to lawn chg,they just blame it
on the gas company AND I FUSS RIGHT ALONG WITHUM
BAD BAD GAS COMPANY.
 
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