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Uping price because of price of gas?

Discussion in 'Commercial Snow Removal' started by RYDER, Sep 24, 2006.

  1. RYDER

    RYDER Senior Member
    Messages: 281

    I started plowing last year. And I was wondering how much to rise my prices because of the price of gas this year?:cry:
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I doing some contacts right now while I'm on plowsite:waving: . With lawn cutting i had a surcharge but with plowing I just bump up the price a little. You don't want to mention gas prices right now with them coming down.
  3. RYDER

    RYDER Senior Member
    Messages: 281

    Thanks that helps.

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    well last year i raised the prices of all my driveways 5 bucks, when gas was on the rise, dunno if im gonna go another 5 ill prolly stay the same this year.
  5. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Are you going to lower prices as the price of gas falls?

    Fuel only takes about 5% of income, I just can't get that excited even when fuel goes up by 30¢ or so. If the price doubled, it would take 10¢ instead of 5¢ of every dollar. I set new customer rates at the fuel price at the time and can usually absorb a year or so of increase. With turnover, I keep it going and the long term customers usually don't get upset with a 10% increase every other year or so.
  6. DeereFarmer

    DeereFarmer PlowSite Veteran
    Messages: 3,296

    The way that I see it, if you loose an account because of trying to squeeze maybe $5-$10 out of a customer, you are going to be much further in the hole than before. You could loose nearly 10 times that much on one account. Not worth the risk to me.
  7. gene gls

    gene gls PlowSite.com Veteran
    Messages: 481

    Fuel has raised the cost of everything we use. Raise your price because of that and not just for the cost of "your" gas. Price of parts and equipment won't come down with the gas price . I went up $ 5.00 plus last year and will go up again this year.
  8. shamp

    shamp Member
    Messages: 33

    I raised my price 5.00 last year I'am going to stay the same this year.
  9. dmontgomery

    dmontgomery PlowSite.com Addict
    Messages: 1,238

    Staying the same this year on current customers, I may raise my new bids a little....
  10. mayhem

    mayhem PlowSite.com Addict
    from Peru MA
    Messages: 1,016

    My plow guy bumped his prices by $5 per pass last year, making it $30 per pass and $35 per sanding.

    Same year I got my own plow truck so I don't have him do it anymore. I probably would have tried to buy a beater if one hadn't been given to me since that price in a typical winter would put me in the $800/season range.

    Prices should have gone up last year, not this year since fuel prices have dropped sharply in the last month to (I think) lower than last year.
  11. Yaz

    Yaz PlowSite.com Addict
    from NH
    Messages: 1,061

    Not if you running Diesel fuel! It was 30 cents more than Super Unleaded this week for me!

    Don't forget almost every thing you buy get there via Diesel fuel. That's why everything is going up.
  12. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    we spend about about $4,000 on fuel and about $40,000 on insurance per year. fuel could go to $3.50 again and it woudn't make an impact on snow removal for us. if i raise it's beacuse of the the insurance companies not because of the oil/farming companies.
  13. hillndale

    hillndale Member
    from Maine
    Messages: 60


    Keep in mind that it's an election year--Midterm this November. Prices will be on the rise again soon after.

    hillndale :D
  14. DeereFarmer

    DeereFarmer PlowSite Veteran
    Messages: 3,296

    SHHHHHH... don't give them any ideas!
  15. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,258

    What Mick said. Last year about this time I wasted a whole bunch of time explaining this to some members here, but none of them could understand. So raise it for higher prices, lower it when the price comes down. Keep your customers guessing on what you are going to charge them, JMO.

    PS Some of you are saying that your prices went up 17% in 1 year? $25 to $30? When fuel costs don't account for nearly that much of your costs of doing business? No wonder people start shopping around for contractors. If you're going to raise your prices, have a dang good reason to do it. I raised the price on one customer 75% one year, because I screwed up on property lines, still have them because I had a reason for raising the price that much.
  16. DBL

    DBL PlowSite.com Addict
    Messages: 1,310

    i hope prices dont go back up im so happy with where their at now
  17. mayhem

    mayhem PlowSite.com Addict
    from Peru MA
    Messages: 1,016

    No. My cost went up 20% from $25 to $30. xysport The reason given was the rising costs of operating his trucks due to rising fuel costs.
  18. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,258

    OK, but what I am saying is that unless he has the biggest gas hogs in the world, his cost of operating his vehicles did not go up 20%. I looked back last year when this all started, my cost of fuel and oil went up 1% of gross sales, not 20%. He is blowing smoke if he says his vehicle operating costs went up 20%. Granted it won't be the same for every company, but like I said, if his operating costs went up that much from just fuel, he needs to look at more efficient vehicles. Some of these guys are saying that because gas\diesel prices went up 50 or 75% that is how much they need to raise their prices. What they don't understand is that fuel makes up only a small percentage of their overall costs and they can not truly justify even a 20% increase in prices based on fuel alone. Not if they really know their numbers.

    Mick is one of the few who truly understands what I am talking about here.
  19. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

    What am I chopped Liver??????? :waving:
  20. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,258

    Big Dog, notice I said "few" ;) :D

    No liver for me, chopped beef, sure no problem.