Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

how do i add a fuel charge


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-19-2012, 06:43 AM
strength strength is offline
Member
 
Join Date: Oct 2011
Location: easton pa
Posts: 33
Rep Power: 4
strength is on a distinguished road
Default how do i add a fuel charge

how do i add a fuel charge to my weekly and bi weekly grasscuting accounts there is word that gas might hit a all time high of $5 a gal this summer and i don't want to bid the cuts high and gas not go up so I'm going to put in my contract a fuel charge over x per gal so at the end of the month when i invoice i can add the charge but i need help as to how much thax
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 01-19-2012, 07:47 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
you will just have to set a base line of what would be considered normal pricing and then come up with a average of the gals used for each customer and hit them up the difference.

even though nothing in this day and age would suprise me anymore and it is not only believable as well as likely that fuel prices will increase i also found history has proven that during a election year the prices will stay within reason to what we are used to.
Reply With Quote
  #3  
Old 01-19-2012, 03:38 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,574
Rep Power: 10
Steve has disabled reputation
Default

Quote:
and hit them up the difference.
Do you mean if prices go higher than you expected, to charge a fuel surcharge on invoices or what would you suggest?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #4  
Old 01-19-2012, 04:47 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
Do you mean if prices go higher than you expected, to charge a fuel surcharge on invoices or what would you suggest?
the way i see it the only fair way if it is in fact a fuel charge would be to set your prices for your services around the baseline average of say $3.00 per gal and then calculate what you use on each property each time as well as what you guess on driving to the job.
i only include one way on the travel, it only includes the mileage getting to the job because the next customer pays for the trip from there to their house.

then if the average price of fuel for the month was $3.75 per gallon and you use 2 gals per week they would pay the $.75 per gallon extra per week.

it is the only fair way i can come up with because i don't think it would be fair to profit off of it when it is supposed to be a charge to offset the additional costs.
if you inform them and they see the prices went up at the pump and it only reflects a couple bucks a week on their service they won't care too much.

our nursery does that to profit, they charge a 10% fuel charge to your total order.
the problem is a fully loaded tractor trailer of new nursery stock will usually average $60,000 retail and 10% is $6,000 and any load coming in might have a extra $500.00 charge for them tops so where they get off tacking that kind of money on i'll never know, but it has cost them a lot of customers.

Last edited by dpld; 01-19-2012 at 04:54 PM.
Reply With Quote
  #5  
Old 01-19-2012, 06:06 PM
TiedemanLLC TiedemanLLC is offline
Senior Member
 
Join Date: Dec 2011
Posts: 226
Rep Power: 4
TiedemanLLC is on a distinguished road
Default

I am personally not a fan of fuel surcharges. We tried it once years ago, and we hated, so did our clients. I have since personally believe that you should just figure a higher fuel cost into your bidding.
Reply With Quote
  #6  
Old 01-19-2012, 09:01 PM
Sprinkler Buddy's Avatar
Sprinkler Buddy Sprinkler Buddy is offline
Senior Member
 
Join Date: May 2011
Location: Florida
Posts: 757
Rep Power: 5
Sprinkler Buddy is on a distinguished road
Default

Quote:
Originally Posted by TiedemanLLC View Post
I am personally not a fan of fuel surcharges. We tried it once years ago, and we hated, so did our clients. I have since personally believe that you should just figure a higher fuel cost into your bidding.
I agree, it's a good way to lose a customer over a few dollars.
__________________
Don't Keep Replacing Lawn Sprinkler Heads
Protect them with "Sprinkler Buddy"
CLICK HERE > http://www.sprinklerbuddy.com
Reply With Quote
  #7  
Old 01-19-2012, 11:00 PM
ringahding1's Avatar
ringahding1 ringahding1 is offline
Senior Member
 
Join Date: Mar 2010
Location: Stillwater, MN
Posts: 316
Rep Power: 6
ringahding1 is on a distinguished road
Default

You could in your spring mailings prepare customers for a fuel surcharge. If the price goes over $4/gallon add $1/week. $4.50 add $2 etc.
Or just add a percentage to their invoice and not say anything. I did this way 2 years ago and was yelled at by a customer...she said 5% was NOT enough.

I did not lose any customers over this, and we actually ended up raising rates for the first time the next season(last year)
Example: $30 per week lawns~~~$32.50


Hope that helps..
__________________
08 F250 Ext Cab/04 Chevy 3500
05 F350/04 F350 Diesel/12 Ram 4500 Dump
4 -60 Toro Zmaster/Lesco 48
3 -8'2" Boss V-Plows
1- Hiniker 9'6" V-Plow
20' Enclosed trailer
18' Skid & 16' Open Trailer
2012 - S185 Bobcat


Reply With Quote
  #8  
Old 01-20-2012, 05:37 AM
strength strength is offline
Member
 
Join Date: Oct 2011
Location: easton pa
Posts: 33
Rep Power: 4
strength is on a distinguished road
Default

i do under stand where you all stand is hard with fual in 2010 it was $250 a gal in 2011 $350 a gal 2012 might be $550 a gal on a 32 gal tank i went from $80 -$112 in a year and might go to $176 and lets not forget my z takes 10Gal -$35 could be $55 thats $231 for truck and Z

Last edited by strength; 01-20-2012 at 05:41 AM.
Reply With Quote
  #9  
Old 01-20-2012, 08:02 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by TiedemanLLC View Post
I am personally not a fan of fuel surcharges. We tried it once years ago, and we hated, so did our clients. I have since personally believe that you should just figure a higher fuel cost into your bidding.
there is nothing wrong with it as long as it is fair and not being abused as another way to make a buck.
also, by having a baseline fuel price in your rate it allows you to keep your price more competitive and not risk pricing yourself out of a job as well as it leaves you a saftey net in the event the fuel gets out of hand.

i myself do not have a fuel surcharge and never charged one but i do have a provision in my contract for that if the price of fuel were to exceed a dollar per gallon or more from when the contract was written that the difference would be charged.

what if the price of fuel was low and there were no signs of fuel prices becoming unstable when you bid the job, how would you be able to "figure" that in? would'nt that be worse then a fuel surcharge?
just overcharge someone for something that may or may not happen.

like i said the purpose of it is to allow you to keep your prices fair to you clients but at the same time allow you to have a saftey net when the crap hits the fan.

everything everywhere goes up when fuel prices rise from soup to nuts what makes the landscaper any different.
Reply With Quote
  #10  
Old 01-20-2012, 11:31 AM
TiedemanLLC TiedemanLLC is offline
Senior Member
 
Join Date: Dec 2011
Posts: 226
Rep Power: 4
TiedemanLLC is on a distinguished road
Default

Quote:
Originally Posted by dpld View Post
there is nothing wrong with it as long as it is fair and not being abused as another way to make a buck.
also, by having a baseline fuel price in your rate it allows you to keep your price more competitive and not risk pricing yourself out of a job as well as it leaves you a saftey net in the event the fuel gets out of hand.

i myself do not have a fuel surcharge and never charged one but i do have a provision in my contract for that if the price of fuel were to exceed a dollar per gallon or more from when the contract was written that the difference would be charged.

what if the price of fuel was low and there were no signs of fuel prices becoming unstable when you bid the job, how would you be able to "figure" that in? would'nt that be worse then a fuel surcharge?
just overcharge someone for something that may or may not happen.

like i said the purpose of it is to allow you to keep your prices fair to you clients but at the same time allow you to have a saftey net when the crap hits the fan.

everything everywhere goes up when fuel prices rise from soup to nuts what makes the landscaper any different.
Don't get me wrong, if you want to add in a fuel surcharge that is fine, but for me it's not. I have come up with some other problems with fuel charges, in which one of them you actually stated "what if the price of fuel was low"

1) What if you put a fuel surchage in your contract to go above a certain price. Would you lower your price then if a customer comes to you and says "hey, you have a fuel surcharge in your contract, but since fuel prices have been low lately, shouldn't you lower my price then?" The fair thing is to lower their price then because they have a valid argument. The argument is that if you are going to raise prices for higher fuel prices, then you need to lower their price with lower fuel prices.

2) What average are you going to use for the fuel surcharge? The national average, state average, local average? What happens if you fill up your gas in the morining and it's above the fuel surcharge price, but then in the afternoon the price lowers? How will you explain that to your client? What if the gas station you fill up is more expensive than the gas station across the road? There are way too many variables involved when trying to say when the fuel surcharge will take effect and how long it should be in effect for.

That's why it's easier just to built the price in your bids. When it comes around for contract renewal, if the gas prices are higher, then you know you need to raise the prices.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
fuel prices snakeman Starting a lawn care business. 9 01-05-2011 05:57 PM
How to charge a fuel surcharge vl2007 General Business Discussions 5 07-12-2008 04:20 AM
Fuel Prices and advertising grounded Lawn Care Marketing & Post your marketing material for review! 13 03-23-2008 04:32 AM
Could you use bio-fuel to help you stand out? Steve Lawn Care Marketing & Post your marketing material for review! 6 01-17-2008 06:36 PM
Fuel surcharges Gopher Software Support Archived Question & Answers - Read Only 1 08-31-2005 11:33 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Your 2015 summer review.
Steve
09-01-2015 11:01 AM
Yesterday 09:04 PM
by Chilehead
5 172
Sample commercial bid
burtle
09-02-2015 06:02 PM
Yesterday 10:48 AM
by Steve
1 81
SCAG Tiger Cat DECK...
rower30
08-24-2013 10:07 AM
Yesterday 08:50 AM
by Sunpointair
15 4,982
best way to.....
Wolf4dk
09-02-2015 11:35 AM
Yesterday 06:45 AM
by Chilehead
4 87
John Deere 667a
acrajchel
08-30-2015 10:00 AM
09-02-2015 07:45 PM
by Just for Cuts
5 134
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 104
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 651
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 439
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 465
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,826
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,517
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 1,056
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,801
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 144
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,276
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
16 1,661
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 199
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 604
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 449
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 410
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 287
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 1,053
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 508
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,489
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 637
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,289
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
08-14-2015 11:08 PM
by scaypa
95 11,559
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 242
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 451
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,127
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 402
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 386
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,869
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 574
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 558
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 566
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 472
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 397
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,788
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 285
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 502
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,193
Best commercial contract...
sanlanct
08-04-2015 12:18 PM
08-06-2015 06:20 AM
by sanlanct
2 428
I came across this on a...
rootytalbot
08-02-2015 11:04 AM
08-05-2015 08:17 PM
by SC93
9 668
Help bidding a hedge...
hopolb33
08-02-2015 06:09 PM
08-05-2015 02:07 PM
by Steve
3 464
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush contract help curb appeal services demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hiring how to hydro increase customers jobs landscape landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:16 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 12:16 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy