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Fuel Surcharge

Discussion in 'Commercial Snow Removal' started by Aspen Snow, Aug 20, 2000.

  1. Aspen Snow

    Aspen Snow Senior Member
    Messages: 148

    Does any one have a fuel surcharge in their snowplowing contract.

    If so, how have you persented it in the contract to make the customer understand the reasons.
     
  2. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    Come on Ron,
    If you dont have enough profit in your bid to suck up an extra 20 in fuel why bother. Last season I can see you being a little short with the extreem fuel raise, but now just add the extra in before the bids go out.
    Why do we all need to justify our expenses to the customer. Its our business, not theirs.
    If any customer would balk at an 10-20$ on a bill, who needs them. Or simply add extra work to the invoice to cover it. I added a fuel surcharge to my invoices last year and didnt get one call. This year its figured into the contract.
    Dino
     
  3. Aspen Snow

    Aspen Snow Senior Member
    Messages: 148

    Dino,

    I am basing my prices on the fuel cost now, but if the fuel hits, $2.25 or more over the winter as they say it is, then I want some type of insurance on my contract to cover it.
     
  4. GeoffD

    GeoffD PlowSite.com Veteran
    Messages: 2,266

    Just have a statement in your contract, that if the cost of fuel is over $ 2.00. Then you will add an $ xxx.xx per month surcharge to there bill.

    Geoff
     
  5. Deere John

    Deere John Senior Member
    Messages: 410

    Said the Mystical God of Snow Removal: "If one prices one's jobs as they should be priced, one should expect to make $120/hour plus - don't sweat the small stuff". Fuel cost for me within that 1 hour is about $8.00. A fifty percent jump in fuel is significant, and would cost me four dollars per hour. However, refering to my first sentence - I'm not too worried about it.
     
  6. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    Ok lets do some math. Lets say fuel cost is $ 2.25 per gallon. If you burn 2 gallons on a lot hile plowing, dont you think that a $ 5.00 fuel surcharge is a little petty.
    Now IMO I would add the fuel surcharge clause, and then add a $ 25.00 fuel surcharge per account and then make money off the deal. But as a matter of profit and loss alone, I wouldnt worru about it, in the long run it will be a minor elevation in cost.
    Dino