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mypage
02-13-2012, 01:09 PM
Hello Everyone... I Was Curious To How Your Company Handles Raising Prices For Gas Prices Going Over $4 /gallon?? Surcharge Or Raise Per Mow Price Etc.... What Percent Do You Raise Prices??
Thanks

jklawncare
02-13-2012, 01:47 PM
Hello Everyone... I Was Curious To How Your Company Handles Raising Prices For Gas Prices Going Over $4 /gallon?? Surcharge Or Raise Per Mow Price Etc.... What Percent Do You Raise Prices??
Thanks

In the past i have set my overhead costs higher than what it currently is. Say gas now is 4.00, i would set it at 4.75. That way you have room to stretch out. If it gets any higher than that i just re-figure my overhead. Say gas is now 5.00 ill set for 5.25. Then give my customers a notice that cost will be rising slightly.

I have never had to raise my prices for anyone (fingers crossed)
I'm sure the reaction would be somewhat unpleasant

P.S Gas here is 3.50

JeffK26
02-13-2012, 09:18 PM
Hello Everyone... I Was Curious To How Your Company Handles Raising Prices For Gas Prices Going Over $4 /gallon?? Surcharge Or Raise Per Mow Price Etc.... What Percent Do You Raise Prices??
Thanks

Agree with JK, plus i use it as a marketing tool such as "sign now to get locked into 2011 gas prices..." Most people don't realize what a company spends in gas until presented to them...but instead of saying "hey gas prices go up, your price goes up." put it in an ad that gives them the information.

mark123
02-13-2012, 10:24 PM
According to my records gas is my lowest expense. Changes in gas prices have little effect on the bottom line.

nickeckes
02-13-2012, 10:28 PM
when gas jumped up about 2 years ago, i set out a letter saying there will be a surcharge of fuel added to the invoice due to the rise in the fuel. . no one complained at all besides one old lady. .then she dropped me 2 months after the price raise. . which was no big deal. . you win some and loose some. . she said $15.00 a week was to much because it only took me 20min to cut her grass. .(in my case 15 bucks was cheap. . was only that low because i had 4 other houses on her street. . i tried to explain my operating cost. . but she didn't understand

turfmaster
02-15-2012, 09:14 AM
Surcharge for anything above $4.00/gal.

lawnboy07
03-02-2012, 03:01 PM
being in Canada we have been dealing with $4.00+ fuel prices for a while. We started charging FSC a number of years ago. We sent a letter out to clients explaining why we had to implement a FSC and how it would work. We set the base fuel price at X and set out a formula that for every $0.05 increase in the price of fuel the FSC would go up X%. The FSC would also come off when the price returned to what we had set as our baseline. We had one client refuse to pay the FSC all of our other clients understood why we had to do what we did. Most of our clients are commercial and have been dealing with FSC as part of their transportation costs for bringing in or shipping out their goods.

brian'slawncare
03-02-2012, 11:48 PM
what if you just explained: "If it goes over $X.XX per gallon, a surcharge of X will be placed. Have the surcharge go up with the gas price...for instance- if you set your prices with gas being $3.50/gal, and it goes up to $3.90/gal and it takes a 2/3 of a gal to cut the lawn...have it go up 2/3 of the 40 cent increase...so 27 cents..I would round to say 50 cents or you could even have a minimum surcharge of $1.00