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  • Fill er UP!

    Crude is almost touching $71 a barrel, currently sitting at $70.74. It has gone up almost $2 in the last day. This is going to be a long summer

  • #2
    From what I have read it seems this isn't the peak either.
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    • #3
      What do you guys think is a good price to enact a fuel surcharge? All my current customers are priced with fuel at $2.50 a gallon, so i'm somewhat safe on them, but for new customers I want to include in the contracts a fuel surcharge over X amount per gallon. I was thinking $3.50 a gallon is when I'd put a surcharge on. I was going to go $3, but heck we're almost at $3 now so that wouldn't work, I can just bid accordingly using the current price of $3 a gallon.
      \"Every strike brings me closer to the next home run\"

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      • #4
        That sounds resonable.

        CNN - Oil smashes record, settles over $71
        Iran worries and Nigeria supply disruptions push price of crude to record trading and closing high; fund buying provides support.
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        • #5
          yup, I just checked www.nymex.com and it's like $71.20 right now

          I personally don't agree with a fuel surcharge. Because of two reasons:
          1. How are you going to keep track of the gas prices going up and down during the day and justifing that to your customers
          2. This is big kicker. If gas prices go down, will you give customers a refund? Probably not.

          That is why I feel that from now on, all new work, so have a higher price tag on it. Bascially, make your services a higher price, don't add that fuel surcharge as an additional price. For example, if you are charging $50 an hour right now, raise it up to $52 an hour.

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          • #6
            Great insight.
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            • #7
              Thanks for the infro Troy. I had the same thoughts about trying to justify when the fuel was up.

              So far everything is being priced on a higher scale, so I'm good for now. I'm just looking for future when/if fuel jumps to who knows $5 a gallon.
              \"Every strike brings me closer to the next home run\"

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              • #8
                I know what you mean. Currently for misc work rate I am going to raise my hourly rate to $52 an hour, from my current $50. I am ok for spring and fall clean ups, currently sitting at $72 an hour. I raised those up last year, and so far no one is really concerned with that price.

                Also I am debating about either to raise fertilizer prices for new customers, or try to find a cheaper, yet still great quality product.

                Also how I am fixing the problem is by lowering my expenses on this end. It has been really hard so far, because two years ago, I went through a major expense cutting technique, which worked greatly and I continue to use, but I am maxed out at how much more I can cut. The next things on my list to cut are cell phone and credit card processing.

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                • #9
                  What % of your customers pay by credit card now?
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                  • #10
                    that is so funny you mentioned about the credit card thing, because I just finished off some sheets to look at the numbers again. Last year I look at credit card expenses, vs. sales was last November.

                    But I would say only about 1% of my customers use credit card

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                    • #11
                      How does knowing that effect your view then of credit card processing?
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                      • #12
                        For example, if I am doing $1,200 a year in sales by payment with credit card, and $300 in bank fees, to me, it's not worth it then. I am losing a possible $300 a year. Sure, I could be also losing $900 a year if you look at it the other way.

                        No matter what, my basic charge a year is approx $180.

                        Now, I am just taking a brief look at my sales for only 2005 so far...sales were $2,765.40. But my credit card expenses for 2005 (monthly fee, processing charges, etc) were $246.24.

                        Was it worth it to lose $246, to push $2765 in sales? Maybe, maybe not. That is what I have to figure out. Would I have lost those sales if I did not accept credit cards? That is what i have to find out

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                        • #13
                          Here you go guys. *This is the break down of me accepting credit cards

                          ACCEPTING CREDIT CARDS

                          * * * * *INCOME * *COST * * NET
                          2004 $1,892.04 $231.98 $1,660.06
                          2005 $2,881.40 $230.05 $2,651.35
                          2006 $1,295.90 $39.00 $1,256.90
                          * * * * $6,069.34 $501.03 $5,568.31 TOTAL

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                          • #14
                            After I broke that down and figured out the profit margin, I am still making around 91% profit margin off from accepting credit cards. I think that i am going to hold out a little longer, and still process them

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                            • #15
                              Another thing to think of is, could you get more of your customers to pay by credit card?
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