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How to set rates when fuel keeps climbing?

Discussion in 'Commercial Snow Removal' started by Italiano67, May 24, 2008.

  1. Italiano67

    Italiano67 Senior Member
    Messages: 638

    What are the ideas on pricing for this coming plow season? It is any ones guess what fuel will be at. I also expect alot of competition with most people looking for any extra scrap of cash. It is going to be interesting on how it shapes up. My regular business of dump trucking is operating on a break even basis and every single week takes another hit from fuel. It is hard to try to get higher rates when everybody is strapped.
  2. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    You may have to use a fuel surchage this year. Too early for me to decide what to do just yet.
    I am using a fuel charge on my dock customeers now and wasnt when gas was cheaper in April.
  3. plowman4life

    plowman4life Senior Member
    Messages: 557

    we have been using a fuel surcharge for a year and a half. works great. we charge people for fuel to go and look at jobs. we add in a fuel surcharge for every job. and as fuel goes up the surcharge goes up.
  4. scottL

    scottL PlowSite.com Addict
    Messages: 1,600

    Rates are going to go up as it looks right now. Like the pizza shop who clear stats on the receipt ' Gas fuel surcharge $1.00 ". Were planning on some rates to simply be higher others to clearly indicate a fuel cost.

    If the lawyers/politicians/lords/elitists/etc/etc/etc would consider the part about '...and for the people' we might not be as :angry:
  5. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    I refuse to set prices this early.
    I'm waiting til end of august.
    I simply can't.
    I expect it to be close to X number, but I simply won't quote a price 4 months away when the price of gas is climing 5 cents a day.

    Everyone has understood.
  6. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    Are you guys using a percent of the total cost of the job as a surcharge? Like say, 5%?
  7. Italiano67

    Italiano67 Senior Member
    Messages: 638

    I believe we are going to raise our rates considerably and if I dont get the work so be it. The days of doing anything cheap are over.
  8. bike5200

    bike5200 Senior Member
    from Ky
    Messages: 437

    Salt will go up because of fuel cost at the mine and there will be a fuel surcharge on shipping it. My wife's job deals with shipping. There fuel surcharge for LTL though Fed-X is 13%.
  9. Blazin

    Blazin Senior Member
    Messages: 185

    I have already had a few of my customers ask me what I am going to do next year. i told them price will be going up, but not sure how much until fall! I still haven't decided to do a set rate or a percentage.

    ADLAWNCUTTERS Senior Member
    Messages: 212

    fuel prices

    It's still to soon to set prices yet.My prices are going up 30 % as of now.

    Messages: 47

    $3.99=12% $4.99=15% 3% for every $1.00 a gallon increase.