Passing on higher fuel costs

[TEC]

How are you guys handling the skyrocketing fuel costs? Do you add a fuel surcharge to every bill? Increase labor rate? Suggestions would be appreciated.

 

[BryanMD]

How are you guys handling the skyrocketing fuel costs? Do you add a fuel surcharge to every bill? Increase labor rate? Suggestions would be appreciated.

Skyrocketing?

The real question is whether your present rate reflects all your costs.
Does it?

Fully loaded service truck? 18mpg? 30,000 miles/year?
30,000/18 = 1666 gallons per year
Last year 1666 at $2.40/gallon = $3998.
This year 1666 at $3.50/gallon = $5831. (+$1833)
$1833 /52 weeks =$35.25 /30 billed hours? = $1.18 per hour
Oil changes cost a bit more too as do tires.

Run your own numbers and what do you get?
If fuel (or any other cost) went down would you adjust your rate down too?

 

[Rewire]

Skyrocketing?

The real question is whether your present rate reflects all your costs.
Does it?

Fully loaded service truck? 18mpg? 30,000 miles/year?
30,000/18 = 1666 gallons per year
Last year 1666 at $2.40/gallon = $3998.
This year 1666 at $3.50/gallon = $5831. (+$1833)
$1833 /52 weeks =$35.25 /30 billed hours? = $1.18 per hour
Oil changes cost a bit more too as do tires.

Run your own numbers and what do you get?
If fuel (or any other cost) went down would you adjust your rate down too?

why do you have just 30 billed hours a week?

 

[ITO]

Fully loaded service truck? 18mpg?

I don't have a truck in my fleet that gets mileage that good. What kind of trucks are you running?