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

Long-term contracts

Discussion in 'Commercial Snow Removal' started by thelawnguy, Jun 22, 2000.

  1. thelawnguy

    thelawnguy PlowSite.com Addict
    Messages: 1,011

    Anyone out there set to be burned by skyrocketing fuel prices, and long-term plowing contracts? My existing long-term contract is for two more years, I failed to put in a clause to recoup higher fuel prices but on the other hand the fuel use at the job is such my expense will only rise maybe ten dollars a push. Anyone with large contracts, how will it affect yourselves?<p>Remember, first day of summer is past, the days are already getting shorter!!!<p>Bill
  2. Deere John

    Deere John Senior Member
    Messages: 410

    I wrote a program to calculate the effect of a fuel increase (or other cost variables) on my actual operating cost. So far, my fuel has gone up by 50% for diesel, but the impact on the operating cost has been about 7%. That's enuf over the course of a year to not leave sitting on the table. I have recurring contracts, and they will get passed the increase, plus maybe a 3% tip for Johnny to make it an even 10% increase. Most people see fuel went up 50 %, and their rates may only go up 10%, so I think they will be ... happy. Ha<br>John
  3. plowking35

    plowking35 2000 Club Member
    from SE CT
    Messages: 2,923

    We just add a fuel surcharge. My customers already have seen it from others, so its no big deal to see one from me. All I know is that diesel is .30 less per gallon than gas,<br>I LOVE MY DIESEL<p>----------<br> Professional Ice and Snow Management <br>Products:Services:Equipment www.sima.org