Due to the fast rising prices on fuel, we are adding a fuel surcharge. I got the idea from a restaurant. Every delivery truck that brings them food has a fuel surcharge. Instead of going into our estimate file and changing every job price, a fuel surcharge seems to be the easiest way to go. We are not trying to make money, just cover the added cost. $12.50 per job is fair when you consider all the diesel and gas we use. We have decided to only add it to jobs outside our small city limits. If it keeps climbing, we will adjust it.
Art O said
Feb 22, 2021
Holy Chit Brett your post got 16 views to my 6 You got them looking!
BlueRidge said
Feb 23, 2021
Art O wrote:
Holy Chit Brett your post got 16 views to my 6 You got them looking!
Iit sucks! Looking at a forum that helped and got them going! We aren't real easy and instant!
DirtyRoofcom said
Feb 25, 2021
Im curious how this will be received by your clients.
For me personally as a consumer a fuel surcharge is a money grab. I understand the thought behind it but when our gas prices shot up around 2003 and skyrocketed all these delivery and municipality companies added a fuel surcharge. When price went back down the fuel surcharge remained.
So now what happens? Gas has been down last few years but I still pay a fuel surcharge for my electric bill my natural gas bill, my lumber yard Etc. with gas prices expected to rise is there going to be a 2nd fuel surcharge or double the old one?
Pressure Tech said
Feb 27, 2021
I like that idea, only I would build it into the pricing of the services. People see a fee or a surcharge and get turned off by it. They'll start to shop around for someone that doesn't 'charge' a fuel surcharge. I've seen commercial customers seek out new vendors due to seeing something like a fuel surcharge on an invoice. Definitely account for the increase in supply/fuel costs, but I think its best to work it into the service costs.
BlueRidge said
Feb 28, 2021
Erik and Andrew... you both have valid points but... I gave this a lot of thought and if diesel comes back under $2.75, the surcharge will not be added. I don't like doing it but I cannot keep going through the year and eat the cost of fuel. We spend between $800.00 - $1000.00 a month on fuel. If the prices jump more, I will just change the number.
Andrew, the amount of work it would take to change our pricing would be crazy. I picked a small number that I think can make up for the increase and not rape them. I would rather be honest than try to hide it.
DirtyRoofcom said
Mar 1, 2021
Brett, I see both sides I was just sharing my perspective as a customer. Your point brings light to how a simple thing like gas increase can really affect the bottom line if you're not on top of your numbers.
I was doing bills this morning and my electric company actually charges me $1.50 to figure out my bill !!
Admin said
Mar 1, 2021
Brett just add the charge into your pricing. Putting it on your estimate would be a negative towards your sale. They may just go looking for a local guys to save a few bucks.
Art O said
Mar 1, 2021
I miss these talks!
BlueRidge said
Mar 1, 2021
Art O wrote:
I miss these talks!
Yea, there use to be a lot of them. Now FB has ruined this. I have little to say to the young ones who know all the answers and endless guessing and sarcasm!
Due to the fast rising prices on fuel, we are adding a fuel surcharge. I got the idea from a restaurant. Every delivery truck that brings them food has a fuel surcharge. Instead of going into our estimate file and changing every job price, a fuel surcharge seems to be the easiest way to go. We are not trying to make money, just cover the added cost. $12.50 per job is fair when you consider all the diesel and gas we use. We have decided to only add it to jobs outside our small city limits. If it keeps climbing, we will adjust it.
For me personally as a consumer a fuel surcharge is a money grab. I understand the thought behind it but when our gas prices shot up around 2003 and skyrocketed all these delivery and municipality companies added a fuel surcharge. When price went back down the fuel surcharge remained.
So now what happens? Gas has been down last few years but I still pay a fuel surcharge for my electric bill my natural gas bill, my lumber yard Etc. with gas prices expected to rise is there going to be a 2nd fuel surcharge or double the old one?
Erik and Andrew... you both have valid points but... I gave this a lot of thought and if diesel comes back under $2.75, the surcharge will not be added. I don't like doing it but I cannot keep going through the year and eat the cost of fuel. We spend between $800.00 - $1000.00 a month on fuel. If the prices jump more, I will just change the number.
Andrew, the amount of work it would take to change our pricing would be crazy. I picked a small number that I think can make up for the increase and not rape them. I would rather be honest than try to hide it.
I was doing bills this morning and my electric company actually charges me $1.50 to figure out my bill !!
Yea, there use to be a lot of them. Now FB has ruined this. I have little to say to the young ones who know all the answers and endless guessing and sarcasm!
You know Hank would be here!