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Long-term contracts

Discussion in 'Commercial Snow Removal' started by thelawnguy, Jun 22, 2000.

  1. thelawnguy

    thelawnguy PlowSite.com Addict
    Messages: 1,011

    Anyone out there set to be burned by skyrocketing fuel prices, and long-term plowing contracts? My existing long-term contract is for two more years, I failed to put in a clause to recoup higher fuel prices but on the other hand the fuel use at the job is such my expense will only rise maybe ten dollars a push. Anyone with large contracts, how will it affect yourselves?<p>Remember, first day of summer is past, the days are already getting shorter!!!<p>Bill
     
  2. Deere John

    Deere John Senior Member
    Messages: 410

    I wrote a program to calculate the effect of a fuel increase (or other cost variables) on my actual operating cost. So far, my fuel has gone up by 50% for diesel, but the impact on the operating cost has been about 7%. That's enuf over the course of a year to not leave sitting on the table. I have recurring contracts, and they will get passed the increase, plus maybe a 3% tip for Johnny to make it an even 10% increase. Most people see fuel went up 50 %, and their rates may only go up 10%, so I think they will be ... happy. Ha<br>John
     
  3. plowking35

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

    We just add a fuel surcharge. My customers already have seen it from others, so its no big deal to see one from me. All I know is that diesel is .30 less per gallon than gas,<br>I LOVE MY DIESEL<p>----------<br> Professional Ice and Snow Management <br>Products:Services:Equipment www.sima.org