ccrider2240
ArboristSite Operative
what the best way to go,,,,,,,,,,, up your rates or charge a fuel surcharge?
fuel is a killer
- Thread starter ccrider2240
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Fuel strategy
I naturally quote higher the further the job is or the more gear I have to bring/operate. I try not to go more than 5 miles from my house, any further than that and the rate starts going up.
We need to start thinking about how we are going to survive when it costs over 10 bucks to fill an MS200T. Its going to happen, maybe sooner, maybe later.
I naturally quote higher the further the job is or the more gear I have to bring/operate. I try not to go more than 5 miles from my house, any further than that and the rate starts going up.
We need to start thinking about how we are going to survive when it costs over 10 bucks to fill an MS200T. Its going to happen, maybe sooner, maybe later.
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TDunk
Addicted to ArboristSite
Just up your quotes a little bit to compensate for the fuel. If you start adding a fuel sur-charge or start charging for estimates you may end up losing customers. But that's just me.
Pete M
ArboristSite Operative
Thinking about this too at the moment - hard to put rates up here. Thinking maybe showing fuel costs in quotes....assuming 1/2 litre fuel used per hour per small machine. Better than saying "fuel surcharge" - people don't like surcharges.
ccrider2240
ArboristSite Operative
its more than fillin up chainsaws , im talking bout trucks ect. whats tough it seems there is deffinatly a market for this work, and odds are we can do it quicker than most folks but still,,,,,,,,, actually ive just figured who im working for if your in the oil buisness than your income has doubled in the last 6 months so 90 percent of the time they dont mind the bill hike..... that just how i feel
M.D. Vaden
vadenphotography.com
I hadn't really done much of a price increase in the past 5 year, whether previously here in the west Portland suburbs, or down in Medford.
So I just upped my rates this week by 25%.
One due to fuel. Two, to work at a slightly mellower pace.
The reason I was bidding lower than some, is that my overhead is much lower due to location and a few "etceteras".
So now I've got my prices up near everyone elses - maybe 5% higher, but with the same low overhead.
The estimates should still be competitive.
But the fuel was the tipping point for me lately.
Not only the truck. But it's wierd to pay just over $20 to fill a 5 gallon can for our home mower and stuff.
So I just upped my rates this week by 25%.
One due to fuel. Two, to work at a slightly mellower pace.
The reason I was bidding lower than some, is that my overhead is much lower due to location and a few "etceteras".
So now I've got my prices up near everyone elses - maybe 5% higher, but with the same low overhead.
The estimates should still be competitive.
But the fuel was the tipping point for me lately.
Not only the truck. But it's wierd to pay just over $20 to fill a 5 gallon can for our home mower and stuff.
Bigus Termitius
Addicted to ArboristSite
Bump the rates...everything else is going up as a result, why should we be or feel any different?
Or....follow me in my revolutionary footsteps....
With all this fear, loathing, and propaganda, I've been thinking alot lately about buying a team or two of horses, a couple of wagons, a couple two man saws and going totally green!
I'll even rig it up so the team powers the ol chuck n duck while they walk in circles. I'll just chip into a covered wagon! Yes..yes...of course!
I can turn my operation into a real circus, maybe sell tickets and my kids could sell lemonade and organic green tea when they aren't draggin brush to the chipper. ( Good ole fashion child labor, a lost and all but forgotten natural resource.)
I've even got a name picked out:
I wonder if this could work, I'll keep my rates really low, maybe make up for the difference with ticket sales, and, for a real deal sealer, throw in for free the resulting yard trimming and all natural fertilization. (a company exclusive)
(Record scratch)
On second thought.....maybe not.
Nevermind. I'll just bump my rates and drive on like the unsung visionary that I could have been.
Or....follow me in my revolutionary footsteps....
With all this fear, loathing, and propaganda, I've been thinking alot lately about buying a team or two of horses, a couple of wagons, a couple two man saws and going totally green!
I'll even rig it up so the team powers the ol chuck n duck while they walk in circles. I'll just chip into a covered wagon! Yes..yes...of course!
I can turn my operation into a real circus, maybe sell tickets and my kids could sell lemonade and organic green tea when they aren't draggin brush to the chipper. ( Good ole fashion child labor, a lost and all but forgotten natural resource.)
I've even got a name picked out:
Olden Daze Arborists, Inc.
Going green in historical fashion!
Going green in historical fashion!
I wonder if this could work, I'll keep my rates really low, maybe make up for the difference with ticket sales, and, for a real deal sealer, throw in for free the resulting yard trimming and all natural fertilization. (a company exclusive)
(Record scratch)
On second thought.....maybe not.
Nevermind. I'll just bump my rates and drive on like the unsung visionary that I could have been.
I've baling hay raking amd baling hay this week with a Kubota tractor I used to own. Not so long ago it cost me $25.00 to fill the tank, now it costs over $100.00! Rates have to go up to cover fuel cost just make sure you know how much more you are paying now vs. the last rate increase.
Pete M
ArboristSite Operative
agree about costs of filling truck - rates got to go up to cover that. Filled my 60 litre tank t'other day for £80. That's US$160 or thereabouts..... Just a very short time ago (matter of months) that would have been £50 (or US$100)
We're also liking the idea of a couple of horses - nice pair of Shires, big aluminium high sided and covered trailer. Great for local work - stick them on the lawn to mow the grass too!
We're also liking the idea of a couple of horses - nice pair of Shires, big aluminium high sided and covered trailer. Great for local work - stick them on the lawn to mow the grass too!
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Bermie
Addicted to ArboristSite
I'm with you on this one, its like the airlines nickel and diming you, charging an increasing scale for how many bags you check, no-one wants to know, just tell them what the price is, period. And build in the fuel cost.
I've been thinking about this too, our gas is now $8 a gallon and diesel is about $7.40.
opcorn:Scars2prove-it
ArboristSite Operative
I raised my quota by $200 a day for a four man crew with a bucket truck. It seems people are expecting to pay more since everything else has gone up. I don't charge a fuel surcharge because the people that are price shopping just look at the bottom line anyway. Loyal, repeat customers don't want to see that they are being charged for fuel. Just factor it into the job.
We are lucky that we can adjust our prices quickly. Businesses that have a set price for a year or more are in trouble. I know a landscaper that has a lot of commercial grass cutting contracts. He is trying to cram 40 hours of work into three days in order to save fuel.
We are lucky that we can adjust our prices quickly. Businesses that have a set price for a year or more are in trouble. I know a landscaper that has a lot of commercial grass cutting contracts. He is trying to cram 40 hours of work into three days in order to save fuel.
