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Estimating fuel costs for long time period

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  • Estimating fuel costs for long time period

    Hi. I'm new to this as a business. I'm bidding on a job where I have to bid multiple locations for a period of over a year.

    I feel pretty good about all the costs except the fuel. With the up/down costs of gasoline and all the uncertainty in the Middle East, politics, etc. how would you estimate your fuel costs in advance. Would you attach some kind of adder stipulating that fuel costs that rise more than X% will be an extra or will have to be re-negotiated, etc?

  • #2
    Are you talking about mowing, fall cleanup, mulch, or plowing?
    The way I look at it is 1 gallon to get to the job and 1 gallon per hour of working
    I don't charge for fuel as long as gas is under $5 per gallon but if it goes over that I would charge 2 times the different "$5.50 = $1.00 charge" on a lawn mow or plow
    Be very careful with fuel charges customers hate large fees for gas going up $0.50

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    • #3
      Could you put in a section in your contract that says something to the effect of, if gas prices go above $X then a fuel surcharge will be applied?
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