How Are You Handling Gas Prices

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Maybe I am doing something right. I looked up in my books to see what % of income I am spending on Gas. so far this year it is 4.9 % but I just filled the vans for next weeks work. In 2003 for the whole year it was 4.7% of income, and last year it was 4.1 % of income. So i think I have this pat of the business under control.
 
the guys who are really feeling the effects are service companies with multiples of vehicles on the road.....some guys have seen their monthly fuel expenses go from $10,000/month to $20,000/month in the past year....and thats for a small 6-10 truck operation....do the math, extra $120k a year in gas....
 
emahler said:
the guys who are really feeling the effects are service companies with multiples of vehicles on the road.....some guys have seen their monthly fuel expenses go from $10,000/month to $20,000/month in the past year....and thats for a small 6-10 truck operation....do the math, extra $120k a year in gas....
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These guys are putting 5000+ miles on each truck every month? Thats better than 200 miles a day for each truck. I guess you would have to raise the rate a little to overcome the cost.
 
bikeindy said:
Thats better than 200 miles a day for each truck.
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Funny you say that, this past Monday to Thursday I averaged over 300 miles a day but that is most unusual for me. There where two of us each with diesel vans doing this and @ $4.39 to 4.55 it adds up quickly.
 
iwire said:
Monday to Thursday I averaged over 300 miles a day but that is most unusual for me.
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I have those days too what i mean is that would have to be every day, day after day. even at $1.50 a Gal I would have that figured into my budget and adjust according to increases. If a guy is driving 210 miles a day at 70 MPH thats 3 hours X wage that adds up fast too and cost more than the gas. It's not like gas was ever free, the increase in copper cost was worse than the increase in gas has been, you just have to adjust some pricing.
 
12 cents

12 cents

Gasoline (petro) is 12 cents a gallon in Venezuela! And 45 cents a gallon in Saduia Arabia! But that does not help us EC's! England price.. over 8 dollars!! To answer the OP, what can you do but raise your rates. Where do you see this fuel cost increase heading? I do not see it getting any cheaper! Will it just take years for everything to catch up or level out with fuel prices??:-? :-? :-?
 
iwire said:
The price of gas has doubled in the past year? :-?
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No, their consumption (measured in dollars) has.

Last year, gas at $2.50/gal., and drove 10,000 miles./yr. at 10mpg. 4 trucks = $10,000 in gas.

This year, they add one more truck, and drive each vehicle an additional 1,000 miles. Since the vehicles are now older, they don't get 10 MPG, but 9.9. Also, gas has increased to $3.60/gal. Annual bill, $20,000, but gas only increased only 44%.

These are not real-world MPGs, mileages & prices, but they fit the 10K/20K model for demonstration.


I heard gas is 15?/gal in Kuwait. I wonder who I can rent a couple of supertankers from.....
 
480sparky said:
No, their consumption (measured in dollars) has.

Last year, gas at $2.50/gal., and drove 10,000 miles./yr. at 10mpg. 4 trucks = $10,000 in gas.

This year, they add one more truck, and drive each vehicle an additional 1,000 miles. Since the vehicles are now older, they don't get 10 MPG, but 9.9. Also, gas has increased to $3.60/gal. Annual bill, $20,000, but gas only increased only 44%.

These are not real-world MPGs, mileages & prices, but they fit the 10K/20K model for demonstration.


I heard gas is 15?/gal in Kuwait. I wonder who I can rent a couple of supertankers from.....
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If you add a truck your doing more work (presumably) so having higher fuel cost would happen without an increase in fuel price.

The simple answer is to adjust your prices. which you have to do when you look at total overhead anyway. You could keep your prices the same if you can cut cost someplace else.
 
bikeindy said:
If you add a truck your doing more work (presumably) so having higher fuel cost would happen without an increase in fuel price.

The simple answer is to adjust your prices. which you have to do when you look at total overhead anyway. You could keep your prices the same if you can cut cost someplace else.
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Acually, if you find the need to add a vehicle, the cost of that vehicle and extra person or two should have been built into your currents costs/prices. So ideally, adding another vehicle should 1. be already paid for and 2. make you more money.

A well-thought-out and executed business plan and careful budgeting with a balance sheet would make adding another truck/crew a piece of cake.
 
It may not be accurate to compare gas prices between different countries. I believe some countries add taxes for national social security and national health benefits to their gas prices.

I bought a Ram 1500 pickup a long time ago and refused to check the gas mileage because I wanted to feel good about my new ride. I checked it a few days ago...ignorance is bliss (10mpg).

Dave
 
Dodge

Dodge

Tiger Electrical said:
It may not be accurate to compare gas prices between different countries. I believe some countries add taxes for national social security and national health benefits to their gas prices.

I bought a Ram 1500 pickup a long time ago and refused to check the gas mileage because I wanted to feel good about my new ride. I checked it a few days ago...ignorance is bliss (10mpg).

Dave
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Dodge... dang ole dirty gas eater!:grin:
 
bikeindy said:
They can ride their bike to work or take the bus (I have a bus stop one block from my shop) or car pool that isin't the case for my truck going down the road to the job, or picking up material.
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On your way to the job.
WorkBike1.jpg


Comming back from the supply house.
triple-bike-trailers.jpg
 
ItsHot said:
Dodge... dang ole dirty gas eater!:grin:
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Right now I'm borrowing my dad's "back-up truck" - a '98 2500 Ram to do some yard work and move some firewood around. It's got the 5.9 V8.

I know it gets about 9-11 mpg but I don't really care because it has a big V8 under the hood and I normally drive a wimpy 4 cylinder 4Runner. :D
 
Gas went up as much as 25 cents a gallon overnight in the Chicago area. Did this happen all over? The news showed one station in the city is at $4.179/gal for reg. unleaded. I was gonna fill up yesterday too.:mad:
 
1) I don't hand out trucks like I used too, and am reducing my truck to man ratios over the next 2 years.

2) When older trucks are at the end of their life, I am going to start buying Chevy Colorado's or some other similar small truck, and keep only a select few full size trucks

3) Some of the guys who used to drive trucks to a home out of town, will now have to either foot the gas from the city limits to their home or leave the truck at the shop.

4) GPS is looking more and more like a viable option to determine who is abusing my, gas, and the $20 a truck per month is staring to sound cheep.

There has been lots of grumbling and I will probably lose some men over this, but as oil approaches $200 a barrel, our labor organization mandated pay raise start, and this recession takes it toll, I have to take steps to stay competitive and my $15k a month gas bill is something that has to be addressed.

Ironically, a fair number of employees have approached me with their own gas problems looking for me to come up with a solution, which I just cant afford to fix for them. I think a lot of people need to take a hard look at their personal vehicles efficiency, including myself.
 
ITO said:
Ironically, a fair number of employees have approached me with their own gas problems looking for me to come up with a solution, which I just cant afford to fix for them. I think a lot of people need to take a hard look at their personal vehicles efficiency, including myself.
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What will happen when your customers say you need to charge them less because their gas costs are going up, and their bosses aren't able to help them out either? :rolleyes: (I'm not expecting a real response to this rhetoric.)
 
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