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 increase ???

Discussion in 'Commercial Snow Removal' started by Dieselman19, Aug 30, 2005.

  1. Dieselman19

    Dieselman19 Senior Member
    Messages: 141

    What kind of price increase is any one doing based on the latest fuel prices? How should i work that, a straight % increase across the board? Any suggestions would be helpful, both residential and commercial

    Thanks
    Bob
     
  2. ADLAWNCUTTERS

    ADLAWNCUTTERS Senior Member
    Messages: 212

    I'm raising my prices at least 10% if diesel go crazy then it will be 15 %. i don't care who doesn't like it, they either pay more or they can do it them selfs.
     
  3. GENERALL

    GENERALL Junior Member
    Messages: 7

    5%... Spread across the customer base I find it adds just the right ammt of money. I'll add it when prices rise above $2.90... which may be today at the rate things are going. Good luck
     
  4. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    I raised mine 10-15 % above last years price. I'm now not sure that is enough, with gas prices here in lower Michigan above the $3.00 a gallon. This AM most are around $3.15 a gallon for regular unleaded. I only have 6 contracts back right now, any new contracts will have to be priced higher.

    What do you think will happen if gas hits $4.00 a gallon. That would be real bad for the economy.

    Regards Mike
     
  5. home rescue

    home rescue Member
    from wv
    Messages: 94

    Hope i covered my butt well. I did very well lasr year with prices so I am quoting prices for under 3.oo a gallon and have a clause in the contract that anything 3.oo and over can go as much as 10% increase depending on amount of increase. From what I have seen others invoices from last year my prices was bringing a premium last year.
     
  6. derekbroerse

    derekbroerse 2000 Club Member
    Messages: 2,377

    I honestly wasn't going to increase my rates this year....

    Last year, I put a clause in the contracts that if gas topped 80 cents per litre there would be a 10% increase...

    This morning, it was $1.40 per litre... :mad:

    Now I think I have to.
     
  7. EIB

    EIB Senior Member
    Messages: 258

    I increased my prices 10%. Then I put on the contracts that a fuel surcharge will happen, when prices go over 3.10 a gallon.
     
  8. echovalley

    echovalley Senior Member
    from CT
    Messages: 456

    it's $3.37 a gallon tonight.realley not sure what to do about a price increase. :dizzy:
     
  9. derekbroerse

    derekbroerse 2000 Club Member
    Messages: 2,377

    I filled up today at $1.18 per litre today, the cheapest I could find. Up the street was $1.40.

    That would be approximately $4.67 per gallon in US dollars...

    Anyone want to trade with me?
    :(
     
  10. Acmemechanic

    Acmemechanic Senior Member
    Messages: 137

    re;PRICE INCREASE

    last year when fuel spiked i added a fuel surcharge to snowplowing,mulch delivery and cordwood delivery.I came up with a seat of my pants # based on distance and fuel useage.every single customer understood!
     
  11. TriCountySnow

    TriCountySnow Member
    Messages: 34

    Planning on raising it 15% for new cleints, and !0% for returning ones.
     
  12. Crodog

    Crodog Junior Member
    Messages: 23

    price increase

    I plan on raising the price on each driveway by $5. It may sound like alot but I don't make money off the truck the rest of the year. It may go up even more if fuel prices keep increasing. Fuel in our area has risen $0.80 per gallon in the last 2 days! I'm debating getting out of plowing cause its too expensive to keep the truck running the rest of the year!


    Crodog
     
  13. sir spaniourd

    sir spaniourd Senior Member
    Messages: 286

    I already have in mind to increase by 15% last year's rates. Last winter gas was $1.99. I am asuming the cost os gas will rise to $4 by December, So 15% is not that bad. It's going to hurt when I have too fill the tank twice and spend $200 a night.
     
  14. mikes plowing

    mikes plowing Member
    from cent pa
    Messages: 77

    My wife and I are trying to figer out what we want to raise the accounts to. I was thinking of $5.00 for each one.The only ones that would be left go are the ones that went up last year.It's hard to say how I'm going to do them.All I do is residents I don't have any big lots so far this year. Eather way hope this year means big payup .
     
  15. lawnmedic

    lawnmedic Senior Member
    Messages: 703

    compared to last winters gas prices, we are at 1.25/gal more right now. That means each truck will use aprox. 32.00 more per storm. If the truck is bringing in an average of 1200.00 per storm, I think I will just right that 32.00 off on my taxes....
     
  16. sir spaniourd

    sir spaniourd Senior Member
    Messages: 286

    lawnmedic, do you mean like you will write that $32 as a loss?
     
  17. echovalley

    echovalley Senior Member
    from CT
    Messages: 456

    Well in CT gas is $1.65 gal more X 4 trucks[40 gals each]=$264 per storm.[out of my pocket]each truck makes about $750 per storm.Plow insurance is up about 150% from last season,salt is up,as well as ice melt=PRICE INCREASE
     
  18. Makndust

    Makndust Senior Member
    Messages: 324

    I'm raising my prices from 60.00 to 75.00 per hour. We just lost the only other guy in town that plows with a pickup. He always held the prices low. I had to compete with him. Now when people complain, I just tell them that I haven't raised my prices in 4 years up until now. His accounts don't like it but we plow their accounts faster than he did anyway.
     
  19. nysnowman

    nysnowman Junior Member
    Messages: 22

    i thought about meeting with all my commerical clients and negotiating the increase with them,instead of "this is the cost ,take it or leave".at least this way they feel as to have some say in the matter,and hopefully appreciate me trying to work with them
     
  20. Eyesell

    Eyesell 2000 Club Member
    Messages: 2,101

    To close this thread, in my opinion it comes down to this:

    Is it better to raise your price ( to cover fuel ) and take a chance of losing the account to a lowballer, or keep the price the same and just take the money. I have a few accounts I was thinking of raising the price, as it says in my contract, ( fuel clause ), but if they say go bag it, then I lose the account for a few small dollars vs. what I would make of that account in a good year.

    Business is to fierce here in MI, seems every year another fleet of private plow trucks are visible on the road, I'm tooooo nervous to raise my price in fear of them getting someone else.