Fuel surcharge

[Poolside]

I'm wondering how others are handling the escalating price of fuel. Do you line item a fuel surcharge to the invoice or include it in a trip/truck charge? How often is this recalculated?

Thanks,
Greg

[Ed Carr]

Hey Greg, not a bad idea.I have a Dodge diesel and today here in NNY price at the pump jumped to $4.25 a gallon!

[360Youth]

Hey Greg, not a bad idea.I have a Dodge diesel and today here in NNY price at the pump jumped to $4.25 a gallon!

OUCH! And I was shaking my head at the $3.18 I saw this morning.

We are line iteming it on the invoices now. I am not sure that I agree with that over just adding it in to the van/mileage costs.

[Poolside]

OUCH! And I was shaking my head at the $3.18 I saw this morning.

In SoCal, the prices are from $3.37 to $3.70 for 87 unleaded.

We are line iteming it on the invoices now. I am not sure that I agree with that over just adding it in to the van/mileage costs.

How do you charge the mileage actual travel to site from shop? or something else?

- Greg

[frenchelectrican]

Hey Greg, not a bad idea.I have a Dodge diesel and today here in NNY price at the pump jumped to $4.25 a gallon!

here ATM the Diesel fuel is allready hit at 3.75/ gallon [.98/litre] {Northeast Wisconsin area as 3/08/08 }

i am not suprised it will hit over 4 bucks per gallon by mid spring time.

I allready did factored in the fuel surcharge long time ago and automatically adjusted to the fuel rate.

not like old days way back when i start my bussines in the USA it was only 1.25/ gallon [ 1995] that time now look at the price. Merde!! .,,,,,,,


Merci, Marc

[jrannis]

Costs me $15 or $20 more to fill up my truck than it did a year ago.

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Just raise your hourly to cover it.
Best to figure it into your overhead and adjust accordingly. Are we looking at 5 bucks a day?
Bury it in your materials. I wouldnt do a line item

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[360Youth]

How do you charge the mileage actual travel to site from shop? or something else?

- Greg
The costs are figured in already. Rates and prices go up the further you get away. The least complicated way is to adjust your rates vs a surcharge line item because it is one less item to explain.

[Rewire]

everything is going up so it was easier just to increase our rate to cover all expenses

[Poolside]

everything is going up so it was easier just to increase our rate to cover all expenses

When you raised your rates, did you send out a letter to your regular customers or just start bidding/billing higher?

-Greg

[Rewire]

We just started billing at the new rate we had one call and ask about the increase but it was more of a "I was woundeing when you would do it" call.Our marketing person said not to send letters as this could cause customers to look elsewere prematurely.Best not to get clients thinking of looking for a new contractor.

[captaincrab55]

Quick Question... If you charge a "Fuel Surcharge", do you offer a "Fuel Discount" if the price drops below a fixed amount?????

[satcom]

Quick Question... If you charge a "Fuel Surcharge", do you offer a "Fuel Discount" if the price drops below a fixed amount?????

You just add the increased cost to your operating budget, then make changes as needed.

[LawnGuyLandSparky]

Quick Question... If you charge a "Fuel Surcharge", do you offer a "Fuel Discount" if the price drops below a fixed amount?????

Yes, but then you have to add the "Adjustment of fuel surcharge surcharge." :grin:

But seriously... fuel surcharges are a mass marketer's way of continually advertizing the same low low price on a product or service, while still billing for variables. Airfare to Florida is always 99.00. (Plus fuel surcharge, luggage surcharge, airport surcharge, and on and on.)

[Poolside]

Quick Question... If you charge a "Fuel Surcharge", do you offer a "Fuel Discount" if the price drops below a fixed amount?????

Not quite. My thought would be to be able to adjust or eliminate the fuel charge to reflect that part of the overhead cost without changing the labor rate. With the rapidly increasing and seemingly topless price we're paying for fuel, I would rather change one line item than having to modify my labor charge by 1.00 per hour every other week.

- Greg

[jrannis]

Not quite. My thought would be to be able to adjust or eliminate the fuel charge to reflect that part of the overhead cost without changing the labor rate. With the rapidly increasing and seemingly topless price we're paying for fuel, I would rather change one line item than having to modify my labor charge by 1.00 per hour every other week.

- Greg

Raise it in $5 incriments.