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

price escalation clauses

Discussion in 'Business Fundamentals' started by NW Snow Removal, Mar 4, 2011.

  1. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    Anyone adding fuel escalation clauses? terrorism clause? We are adding something to ensure that if **** hits the fan with the US Dollar, and it is greatly devalued, and prices of material skyrockets, we can change to price to reflect market prices. you should too.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Season is over wait till summer to see what happens.
     
  3. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    you don't resign any people at the end of the winter? we always try ASAP.
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    No need to. In our area loyalty is bigger then price.
     
  5. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    our clause reads something like this.

    We will not be responsible for any delay or failure to service caused wholly or in part by any cause not resulting in negligence on our part, including without limitation, fire, flood, accident, strike, labor trouble, civil commotion, rioting, acts of terrorism, war, demands, requests, or requirements of governmental authority, product available, inability to obtain fuel, power, raw materials, or acts of god, including naturally occurring conditions.
     
  6. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    I hear ya, but It helps our nerves to not have to wait til september to have the signed client folder start filling up.
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Not to start a pissing match,but in your other posts your going on about having the right equipment and stuff yet you don't stock and extra supplies for an emergency? We it snows here I don't give a rats as about any of those things my only job is to get my stuff taken care of.
     
  8. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    I appreciate any and all input, it only helps for understanding of what is actually happening. Multiple perspectives are always welcome! Thanks for your ideas. We have 1000s of tons and 100s of pallets on hand during winter, but what happens if salt becomes unavailable due to something unimaginable. What if gas is unavailable? What if there is rioting in cities due to the collapse of the dollar. I am a conspiracy theorist so I am always thinking worst case scenario and I am buying the hell out of silver. Dollars might soon be worthless. http://online.wsj.com/article/SB100...6132170181013248.html?mod=WSJ_hp_mostpop_read
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Well unless your being paid in gold bars and if the dollar collapses ,why are you still plowing these places?
     
  10. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    with a 30 day termination clause, you don't really have to worry that much.
     
  11. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    that's why the clause is there; to exempt us from service if this unspeakable happens. without the clause we would still be required to service and the value of our payment would have gone through the floor.
     
  12. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    good point.
     
  13. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    You can always move up here... our dollar is getting stronger, (Just remember you won't be stacking for me.lol.):) I hear Mexico used to be nice.
     
  14. rcn971

    rcn971 Senior Member
    Messages: 213

    If there is rioting in the city because the dollar collapsed and there is a war going on I dont think anyone is really gonna care about your snow plowing...lol. On the other hand it sounds like you have a standard contract written by a laywer. None of it really covers or even addresses for that fact your original concern of escalating fuel costs. There needs to be writing in the contract that your pricing is based on fuel costing $x per gallon and if that cost on your local average goes up by Y% than an increase will be incurred to cover that cost.You can not add profit into that number, it is only ensure you make the same.Likewise, if the riots cease,the war treaty is signed and fuel costs go back to original pricing at the time of contract signing, you will have to once again adjust your pricing....if all your trucks weren't flipped over and set ablaze in the streets on their way to plow your sites by then that is.To simplify it....you are gonna pass the buck down the line. Oh and the other guy that mentioned the 30 day "out" clause was right as well...don't know how that wasn't in there already.
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    NW, I don't usually ask this but are you a man or women?
     
  16. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    next you are going to ask if NW needs Cranberry juice! hahahaha
     
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Just curious about something.
     
  18. NW Snow Removal

    NW Snow Removal Senior Member
    Messages: 533

    Both! Ha there are many people behind the posts. A few of us have access. :)
     
  19. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    Wow, I only have 3 personalities...I think you've got me beat!:eek:
     
  20. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    NW I think you have a very good idea here. Not sure to what extent you should go but covering fuel and salt are a good start.