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2005-2006 Rates

Discussion in 'Commercial Snow Removal' started by dmjr77, Jul 11, 2005.

  1. dmjr77

    dmjr77 Senior Member
    Messages: 225

    Hello! Well I have been thinking about getting together my 2005-2006 contracts in place here soon. With the price of gas being so high, how much does everyone think they are going up? I have been thinking about going up between $5 and $7 per driveway. I also have been thinking about charging a fuel surcharge either at the start of the season or during each time I plow? Any suggestions would be helpful
    Thank you
  2. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    I write a fuel surcharge into my contract. However it has to reach a point during the season. To early now to tell what fuel will be in the winter.

    Also, how will your customers react to raising the price $5-7 per drive because of higher fuel? Do you really burn 2-3 gallons per drive? I know fuel is a big expense but I think that will be considered extreme. During the winter each of my trucks uses a tank for a storm. Around here we have seen about a 15% increase in fuel, so you would have to divide that by the driveways on the route and then assess. It will end up being less then a dollar a drive likely.

    Now you could just raise rates, but watch that you stay in your market. I am thinking now that I will just keep them the same and go with a surcharge of my percentage (yet to be determined) if the price goes above $2.50 (mayu change if price changes).

    Incidently my summer contracts for mowing and such just hit their surcharge at $2.40.