1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

2008 Bids-diesel Cost?

Discussion in 'Commercial Snow Removal' started by lawn king, Sep 7, 2008.

  1. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,070

    Its that time of year again. Should we base our bids on an average cost of $5. per gallon for diesel fuel? All our equipment is diesel.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    How much did you use last yr? Then take that amount and figure it at 5.00 and maybe spread the difference around or just bump up your price a few %.
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,921

    What is your profit margin?

    cost x ?

    Fuel can go up $10 a gal and I'll still make a profit plowing...

    If fuel going up a $1 to $5 is going to put you under then you already are, you just don't know it yet.
  4. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    true , but there is a minimual profit to at least aim for , because all the rest take away dollars from my "special fund":drinkup: and boobs
  5. framer1901

    framer1901 Senior Member
    Messages: 805

    Losing money?? How when I just deposited 1500 or 15000........

    Fuel really is a low percentage of snowplowing costs that it shouldn't be a the front of the thought process....

    Say as an example that 50 in fuel plows 750 in billing, fuel goes up 25% so now 62.50 in fuel plows 750 in billing. So, if you are priced that tight, raise your prices that 1.6% and see how many of your every year customers start getting other bids......
  6. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,070

    We get about 24 hours of plowing out of a tank of diesel fuel. I just want to be sure we make approximately 10% more than we did last season. We could have a really good winter season if the snow gods smile upon us.
  7. cet

    cet PlowSite Fanatic
    Messages: 7,196

    If you can run 24 hours on a tank of fuel then that is close to 1.5 gallons per hour. If fuel goes from $5 to $10 per gallon your cost goes up $7.50 per hour. Fuel might go up $2 but I don't think so. You can't be running that close to the line.
  8. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    deisel has dropped here to 3.99 from a high of 4.79 last winter it was about 2.79

    2.79 to 3.99 isnt that big of deal 2-3/hr is all, raise your price a few % and dont worry about it

    good question though with the salt issue everyone has forgotten about fuel