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2008 Bids-diesel Cost?

Discussion in 'Commercial Snow Removal' started by lawn king, Sep 7, 2008.

  1. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,085

    Its that time of year again. Should we base our bids on an average cost of $5. per gallon for diesel fuel? All our equipment is diesel.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    How much did you use last yr? Then take that amount and figure it at 5.00 and maybe spread the difference around or just bump up your price a few %.
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    What is your profit margin?

    cost x ?

    Fuel can go up $10 a gal and I'll still make a profit plowing...

    If fuel going up a $1 to $5 is going to put you under then you already are, you just don't know it yet.
  4. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    true , but there is a minimual profit to at least aim for , because all the rest take away dollars from my "special fund":drinkup: and boobs
  5. framer1901

    framer1901 Senior Member
    Messages: 852

    Losing money?? How when I just deposited 1500 or 15000........

    Fuel really is a low percentage of snowplowing costs that it shouldn't be a the front of the thought process....

    Say as an example that 50 in fuel plows 750 in billing, fuel goes up 25% so now 62.50 in fuel plows 750 in billing. So, if you are priced that tight, raise your prices that 1.6% and see how many of your every year customers start getting other bids......
  6. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,085

    We get about 24 hours of plowing out of a tank of diesel fuel. I just want to be sure we make approximately 10% more than we did last season. We could have a really good winter season if the snow gods smile upon us.
  7. cet

    cet PlowSite Fanatic
    Messages: 7,257

    If you can run 24 hours on a tank of fuel then that is close to 1.5 gallons per hour. If fuel goes from $5 to $10 per gallon your cost goes up $7.50 per hour. Fuel might go up $2 but I don't think so. You can't be running that close to the line.
  8. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    deisel has dropped here to 3.99 from a high of 4.79 last winter it was about 2.79

    2.79 to 3.99 isnt that big of deal 2-3/hr is all, raise your price a few % and dont worry about it

    good question though with the salt issue everyone has forgotten about fuel