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squirtgun

Fuel surcharge

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All of my commercial customers are currently paying between $65 and $85 in fuel surcharges from their food suppliers down to the garbage collection company.

Have we reached a point that a fuel surcharge is in order?

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"I need to feed my family".

  • Weather you put a fuel charge, or just a plain old price increase, someone is going to pay for the increase in the cost of doing business and it's not going to be me. I will be paying everyone elses added costs and they will be paying mine. Good or bad, nothing stays the same forever.

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Last year, in response to higher gas prices, (not to mention diesel) I started giving most estimates over the phone. I explained that I was doing it in order to keep from raising prices and almost everyone appreciated the savings. Not to mention, getting an instant quote was what many were looking for.

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Personally, it pisses me off no end to see a 20% - 25% fuel surcharge on freight bills coming to me, but what choice do I have? Drive hundreds of miles to pick up my merchandise? Trucking companies and carriers (UPS, FedEx, etc.) have a captive clientelle. It would be better, IMO, to add to the price of the job instead of denoting a "fuel surcharge".

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Personally, it pisses me off no end to see a 20% - 25% fuel surcharge on freight bills coming to me, but what choice do I have? Drive hundreds of miles to pick up my merchandise? Trucking companies and carriers (UPS, FedEx, etc.) have a captive clientelle. It would be better, IMO, to add to the price of the job instead of denoting a "fuel surcharge".

Russ I agree that a separate charge isn't the best way to reflect a cost increase for our industry.

One of my customers was telling me their trash company is getting $75 extra per stop in fuel charges .The last time I cleaned their property I watch the truck go down the row of 30 or so businesses in a matter 15-20 minutes emptying dumpster and started thing someone was getting robbed.

I have a cost increase of 6% annually clause built into the service agreement we use,but it seems as thought that 6% may not be enough if the oil companies have their way.

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In the freight and transportation industry there has always been a fuel surcharge. Airlines, LTL carriers, EUV carriers, bus lines have charged a minimun of 10% FSC and it has always been an additional way to profit as well as cover the increasing cost of fuel.Call it whatever you want but it is for profit. The constant increase in fuel means constant increases in FSC and it always covers the cost of fuel and added profit. I have considered it myself but not just yet. Honestly IMO it is a tool to make more money using an industry term that people can relate to. They may not like it, but understand it anyway. They may choose to use a different carrier thinking they can avoid the FSC, but I don't think you fill find a company that is not using a FSC. So it gets accepted as normal over the board. It almost doesn't seem right, but it won't change if that is what you are hoping for.

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Cruise lines imposed one last fall, and are now in court over it. Two of the major lines have stepped up and are refunding passengers for the surcharges, which were added after their bookings.

Beth

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When you buy a new car here you pay on top of the price

Freight / Air tax / Gas tax / Administration / PPSA / Licence...

Go buy a pair of dress pants and pay extra to have them hemmed. Go on a Vacation and airport taxes.

Prices go up , prices go down. We are all entitled to make a living. Most people already expect things to change. Sell the job, costs are costs. Line paint has doubled over the last couple years. I'm not going to take a pay cut. The customer wouldn't so why should you.

How you cover the increase is up to you.

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Adding the increase to the bill would be nice, but that also makes them wonder if they can get it for cheaper and many will fly the coop.

Finding ways to be more efficient and still keeping the same level of service works for me.

Diesel alone increased 32% since 6-07, and I drive with diesel as well as fuel the burner.

Leaving earlier, adding an extra stop, and working faster have allowed me to keep the same pricing and still profit the same as before. May not always work like that, but it has until now.

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Adding the increase to the bill would be nice, but that also makes them wonder if they can get it for cheaper and many will fly the coop.

Finding ways to be more efficient and still keeping the same level of service works for me.

Diesel alone increased 32% since 6-07, and I drive with diesel as well as fuel the burner.

Leaving earlier, adding an extra stop, and working faster have allowed me to keep the same pricing and still profit the same as before. May not always work like that, but it has until now.

Been trying to consolidate trips and it works some nights but others I am just too stretched out. Gonna have to tighten customers up closer to home and do more work at each location to beat this..Might get a small pressure washer unit and do without the trailer when I can on the day work. I feel some trades just won't be given as much leeway to increase prices as lowballer competition can tend to rule them.

...example would be that I ran into paint crew today doing a whole house at the $2k mark and I still hearing of idiots doing 10k of floor for a c-note.

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