W/Rising cost of gas is anyone increasing their prices?

[PTMatt]

Gas is up to $4.50 a gallon in my area and rising. It's getting awfully expensive to run my Everest and Apex all day :shock: Just wondering if anyone is increasing their prices do to the rise of gas?

 

[Jtuseo]

Not raising my prise, but I did buy $12,000 worth of ticker symbol USO. Back in 2008 I did the same and made 20K Do it if you have extra money. Crude oil will go to 140 a barrel and then go back down to $80 per barrel. Just get out between 120 -140 per barrel and you will be thanking me.

 

[Vivers]

I just add it into the bill. On big jobs I really don't worry about it however, on the smaller jobs that nickel & dime you and there stuff is filthy I just add whatever gas cost is at the time per hr of machine time. So if gas is $4.50 per gallon and mr smiths job will take about an hr I figure I add $5 to the bill.
If the job is further away then say 10miles and is small I also will add to the bill another charge to reflect the drive time and fuel consumed.

 

[Dolly Llama]

if you can't afford to run a TM because of a dollar or two* increase in a TM production hour, you have serious problems.
*(assuming 1 to 2 gal pr hour TM fuel use)



cost of machine use pr production hour is minimal when counting that bean.
if it costs 99 bukz for a two roomer and hall and takes you an hour, make it $102
No one will bat at eye at that kind of increase and you'll have that nut covered


.

it's the cost to haul the gear from drive to drive is the bigger nut to cover...
be it a porty and roto scrUbber or a sOOper dOOper sUper sUcker

the larger your service area , the bigger that nut grows


..L.T.A.

 

[GeneMiller]

the difference is actually only pennies per job. no big deal. try to book jobs so that they are close to each other. if it's not a habit then start.

gene

 

[daniel@procarpet]

Not raising my prise, but I did buy $12,000 worth of ticker symbol USO. Back in 2008 I did the same and made 20K Do it if you have extra money. Crude oil will go to 140 a barrel and then go back down to $80 per barrel. Just get out between 120 -140 per barrel and you will be thanking me.

Sorry I have to disagree. According to Trump oil should be 30-40 dollars per barrel. If you invested in actual oil contracts you would have made really good money but if you invested in USO ten years ago you would be down 40 percent and need the stock to go up 80 percent from current values just to break even.

 

[Dolly Llama]

Not raising my prise, but I did buy $12,000 worth of ticker symbol USO. Back in 2008 I did the same and made 20K Do it if you have extra money. Crude oil will go to 140 a barrel and then go back down to $80 per barrel. Just get out between 120 -140 per barrel and you will be thanking me.

Sorry I have to disagree. According to Trump oil should be 30-40 dollars per barrel. If you invested in actual oil contracts you would have made really good money but if you invested in USO ten years ago you would be down 40 percent and need the stock to go up 80 percent from current values just to break even.

i don't have a clue about stocks or commodities
but Dan'l, he said ,

"Back in 2008"

that's 4 years ago, not ten
(and possibly closer to three, depending when he got in)

So what's that add up to?
(since you're counting for me) !gotcha!


..L.T.A.

 

[Lee Stockwell]

Not raising my prise, but I did buy $12,000 worth of ticker symbol USO. Back in 2008 I did the same and made 20K Do it if you have extra money. Crude oil will go to 140 a barrel and then go back down to $80 per barrel. Just get out between 120 -140 per barrel and you will be thanking me.

Sorry I have to disagree. According to Trump oil should be 30-40 dollars per barrel. If you invested in actual oil contracts you would have made really good money but if you invested in USO ten years ago you would be down 40 percent and need the stock to go up 80 percent from current values just to break even.

Quoting trump hurts your credibility.

 

[machinejjh]

By adding a GPS tracking system we have reduced our fuel costs almost immediately. This is a no-brainer for multi-truck outfits. Not only can you schedule routes better or know where your guys are at all times, you can instill some responsibility about fuel use in your guys. Curbing the negative impression you leave by speeding never hurts too.


Also, a small 20% increase in your protection/deodorization can negate some fuel costs as well.

 

[hogjowl]

Fuel prices are a very small % of our codb. As with chemical costs, worrying over a percentage point is silly. It's your break even point that you need to keep you eye on.

 

[Desk Jockey]

I worry about everything!

Plus for me that small percentage still add's up to $5000.00-$6,000.00 a month.

I guess it could be worse I could have Ken Snow's fuel bill! :shock:
Of course then he also has the fat cash to pay it! 8)

 

[idreadnought]

At 1 dollar increas per gallon and typical machines using between 1.5 and 2 gallons and hour, it is hardly pennies. Multiply that by the thousand or so hours your machine runs a year per truck and it is a signifigant amount of money.

I decided not to raise prices but to put the squeze on the competition. Some of them are lowballing prices and I want to see how well they fair doing it with gas prices skyrocketing.

 

[Desk Jockey]

Some of them are lowballing prices and I want to see how well they fair doing it with gas prices skyrocketing.

That could nuke someone with a small margin that's not aware of their costs of doing business.

 

[hogjowl]

A 50 cent increase in the cost of gas will cost an extra ... 1.5 gallons of fuel an hour x 50 cents is 75 cents more an hour. Average of 950 hours a year means that truck will have an extra $712.50 a year in fuel costs.

I can manage an extra 75 cents an hour.

 

[Desk Jockey]

uhh huh, per truck ya foo!

 

[Dolly Llama]

TM run time is easily absorbed .
large service areas will take a bigger bite that's harder to absorb.
a 30% increase in the total fuel budget isn't chump change to some

regardless of the cost of doing biz...it has an impact on our market .
Be it real or physiological, people pause and think more about what they're spending their money on.
As long as prices are rising, or volatile , it's an "unsettled" feeling to most.
The result is to hold on tighter to disposable income .


..L.T.A.

 

[idreadnought]

A 50 cent increase in the cost of gas will cost an extra ... 1.5 gallons of fuel an hour x 50 cents is 75 cents more an hour. Average of 950 hours a year means that truck will have an extra $712.50 a year in fuel costs.

I can manage an extra 75 cents an hour.

Sure everyone can absorb 50 cent increase. But we have already had a 50 cent increase with no end in sight. what if it goes up $2.00, dan you manage an extra $2,850.00 bucks a year in fuel costs? Not to mention the additional costs of transportation. We drive about 800 miles a month per van. at 15 miles per gallon that is 53 gallons of fuel per truck. At $2 a gallon increase that is an additional $1,272 a year in transportation costs.

Serious amounts of money to me.

 

[hogjowl]

The world is coming to an end. Get out now, before it all goes to hell.

 

[Desk Jockey]

Thank you Porkchop I've come to the same conclusions. :shock:

 

[Willy P]

 

[renegade_cowboy]

I wonder if the high fuel cost is going to change the customers spending habits.

 

[Lee Stockwell]

I wonder if the high fuel cost is going to change the customers spending habits.

THAT is the more important question.

 

[Dolly Llama]

I wonder if the high fuel cost is going to change the customers spending habits.

youbetcha ..but only short term or as long as prices are rising or highly volatile .

Once they stabilize (even if at $4 a gal) most people will adjust and things will get back to normal for all but those with marginal incomes


..L.T.A.

 

[hogjowl]

But ... be sure and buy your EWIT now while prices last!

 

[Dolly Llama]

But ... be sure and buy your EWIT now while prices last!

what's an EWIT, Pokechop??
I'm slow, you know


..L.T.A.

 

[Giorgio]

Yes,

As soon as busy season hits I'm bumping rates from .25 s/f to .30

 

[ameraclean]

I have been charging fuel charge for over six month now , but big ticket i dont only those min jobs

 

[Delta Dave]

I lost a fairly big account to a guy who I heard is charging 1/3!!! of what I charge. Its in my neighborhood so I was going to go crawling into to talk with the Manager ( It's not apartments ) and lower my price. then I found out this guy is coming from an area that is about 25 miles from here so in a small sense I am actually rooting for higher gas prices to kick his sorry a$$ back to what ever $99.00 for a whole house rock he crawled out from
Whew.

Okay so I got that off my chest.

They love my work and I know it is just price that is stoping them from using me (I have a Friend on the inside) but I want to time it right and don't want to give too much. Any thoughts?