Gas Surcharge?

[vharrison]

Is anyone charging a gas surcharge per bid? We are working on the numbers right now, and considering it. It is a tough calculation because you are not trying to recoup the entire gas bill, that is already part of doing business. It is just the difference, say, from what you were paying a year ago and what you are paying now per gallon.

 

[MasterBlaster]

If you aren't working it into the bid, then you're insane in the membrane. Everything costs more now.

 

[TheTreeWiseMen]

If there's alot of cutting or alot of driving involved in a particular job, then yes I'll stick more $$ on the bottom of the proposal form......Many of my clients are asking 'how are you coping with the jump in gas/diesel prices?' so I think they half expect a slight increase in their final bill anyway.

 

[stehansen]

That's what I'm doing. Just working it into the bid. My neighbor the fuel broker has 5 trucks that go to the refinery up in Richmond and sometimes he gets behind and has to hire someone to deliver fuel for him. The other day he hired a tank line trucker to haul a load of gas to the gas station at Yosemite National Park and the trucker charged him the regular rate per mile to haul a load and then also billed a 20% fuel surcharge. He said that the 20% was enough to pay for all of the fuel used. I think a surcharge is more applicable in that type of business where the charges are somewhat standardized.

 

[sotc]

weve bumped our prices for the first time. dont seem worse for wear either

 

[vharrison]

If you aren't working it into the bid, then you're insane in the membrane. Everything costs more now.

We are, but there is only so much you can get for a trimming a palm tree.

 

[MasterBlaster]

Maybe so, but can you think of a lotta stuff that is the same price today as it was a year ago?

The price of palm (any tree) trimming HAS to increase... just like everything else.

But I hear ya. The times they are a'sucking!

Spam sales are at thier highest ever!

 

[Mr. Sir]

We are, but there is only so much you can get for a trimming a palm tree.

Excuse the sidetrack here, but I'm just wondering how much you can charge for a palm trim. I really don't like to trim palms, so I charge $50-$75 for the average queen or sabal palm; $75 and up for Washies, and $150 or more for dates. I lose a few customers now and then, but I wouldn't care if I never trimmed another palm in my lifetime. There's plenty of REAL trees to be done. I know you can't do that because palms probably make up the majority of our business.

 

[Jonseredbred]

We are working the increases into our overhead and bidding them in.

I am thinking about charging for estimates as that is a increased cost that may/may not be recouped.

 

[Mr. Sir]

I am thinking about charging for estimates as that is a increased cost that may/may not be recouped.

Free estimates are pretty much the standard in this business. I think you'd lose more than you gain by charging for estimates. Better to raise your rates to cover the increased costs, IMHO.

 

[No_Bivy]

6 %.......

 

[sotc]

of the bid?

 

[lumberjack]

Meant to post this in this thread:

Going from $3 to $6 would increase my cost for an average bid (30 miles of driving) by about $2.42.

I can handle it.

 

[Frans]

Been looking at buying a hybrid for bids

 

[Paul B]

devils advocate, buying and insuring a hybrid will cost how much a year? Driving the current rig to continue estimating will cost how much a year? total savings?

I just try to make sense of bids, lump them together by area so its a few at a time, I try not to go out of my way for one bid, unless its basically a shoe in and its not too far.

I have listed a fuel surcharge on my estimates and invoices for 2 years now, I have yet to charge one. well, not on the line item anyways, there might be a bit added to each invoice to accomodate for the few bucks extra in fuel

 

[No_Bivy]

of the bid?

I have not, but this is the surcharge my crane guy charges......yes 6% of thier bottm line.

 

[vharrison]

Excuse the sidetrack here, but I'm just wondering how much you can charge for a palm trim. I really don't like to trim palms, so I charge $50-$75 for the average queen or sabal palm; $75 and up for Washies, and $150 or more for dates. I lose a few customers now and then, but I wouldn't care if I never trimmed another palm in my lifetime. There's plenty of REAL trees to be done. I know you can't do that because palms probably make up the majority of our business.

That is right on target, Brett, but for dates, we get $250.00, not a penny less. We put it that high hoping we don't get them, but we do. Just last month one of our guys had to have surgery to get one of those darn thorns out.

 

[vharrison]

Well, we ran some numbers and our fuel cost is up 21.7% year to date from last year.

Our territory runs 100 miles down this island chain, so we are calculating different costs for different areas, based on travel time.

Our lawn maintenance accounts are getting the fuel surcharge as of this billing.

Yesterday, I faxed our first tree quote with a surcharge...it was faxed back to me in a matter of minutes with a signature to go ahead. The guy did not question the surcharge, I think people are going to understand.

 

[lumberjack]

Frans, I'd look at getting an 01 or newer Civic. They can be cheap as hell to insure, and get 34-40mpg without the expense of buying a new hybrid.

The Civic hybrid claims to get an exta mpg over my Civic's average mix driving (37mpg).

37 to 38 mpg means I'd spend about 3% more for fuel. At 4 bucks a gallon it would take 10k miles to "save" $1580 in fuel expense. 10k miles @ $4 would save $1200.

Diesel Jetta's can get 40-44mpg, my best tank has been 41mpg.

My car was $7400.

 

[sotc]

hybrids here have tax incentives to buy, there are people in frans area that may go with his bid just because he showed up in a hybrid for the bid

 

[Paul B]

hybrids here have tax incentives to buy, there are people in frans area that may go with his bid just because he showed up in a hybrid for the bid

if that helps, or if its changing from a different bid vehicle thats horrible on fuel, then with tax incetives etc, it may make sense. I have thought about using my wifes little honda for bidding and consulting work actually. Would need to look into augmenting the insurance though for work use.

 

[Stumper]

Been looking at buying a hybrid for bids

Yup. " The tree guy who rides a mule."

 

[Al Smith]

Yup. " The tree guy who rides a mule."

Speaking of which,whatever happened to that guy that rode a bicycle

 

[Frans]

Yup. " The tree guy who rides a mule."

I get it

Also looking at the Toyota Highlander with the 4 cylinder

 

[Thor's Hammer]

HYbrids are the devils spawn. Look at the total carbon footprint for that car, the oil miles it travels in shipping, the huge enviromental cost of the battery system.. Google it, its quite shocking.
They worked out that in the UK a landrover has a 10th of the carbon footprint of a prius. You could probably apply the same logic to a F150 in the USA.

Over here, the VW Golfs are getting near 70mpg with their TDi's, and that would leave a hybrid for dead in a race.