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Fuel Surecharge

Discussion in 'Business Fundamentals' started by RYDER, Aug 5, 2008.

  1. RYDER

    RYDER Senior Member
    Messages: 281

    Is any one charging a fuel surcharge? How do you figure out what to charge for surcharge for a seasonal plow job?
  2. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Is your seasonal a multiple year contract? Is it a renewal from last year? Are you locked into the price from last year? Does it say in your contract that you can charge a fuel surcharge? Does it say that you can increase your rates at all?

    If you can I would approch them with a percentage increase over last year. Something that you feel good about and won't cause them to look for someone new. Probably underr 10 percent. What was the cost of living increase last year? I have no idea.

    Visit Fuel Surcharge 101 for more information.

    Good Luck
  3. RYDER

    RYDER Senior Member
    Messages: 281

    It would be a renewal from last year. I am not lock in to a price. My contracts do not say any thing about a fuel surcharge yet.
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    My contracts run from Nov1st to Apr.30th no fuel charge ,I 'll just be raising my price, just hope the good service from the past will justify them resigning without looking around.
  5. Marbleman

    Marbleman Senior Member
    Messages: 149

    My question on this subject is for people who have multi year contracts (3 year contracts)
    What rate for fuel surcharge for seasonal accounts?
  6. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Having a multiple year contract is like job security. You bid it at a price that you are happy with. The customer doesn't look for another contractor based on price for that period of time. If you don't perform, that's another story.

    I'm sure contracts being written today for multiple years have fuel surcharges built into them.

    I'm with Grandview. Raise your price to cover costs and profits. The assumption with a surcharge is that it will go away when the price goes down. And yes, it will go back down.
  7. RYDER

    RYDER Senior Member
    Messages: 281

    Thanks for the advice. That is a good point if the gas prices go down do thay expect the surcharge to go away?