Do we really care about the cost of gas?

[plainpainter 217]

I was talking to another contractor and then reading a thread about vehicle choice here - and the same thing pops up, people are sensitive to mileage. Then it got me thinking - should we really care about mileage or the costs of gas? If we are professionals - shouldn't we just factor in the extra cost of gas and pass it on to the homeowner? More than ever, guys running around with $99 house washes are the ones that will truly suffer. If I charge $350 for a minimum house wash last year - what do I really need to mark that up to take into account extra gas costs? $360 or $370? Is the cost of gas the only thing between success and abject failure? I ran a pressure washer for like 3 or so hours on one gallon of gas - so instead of a buck it's 4 bucks - on a $2,400 deck resto - who cares?

[Ron Musgraves 240]

Oh come on Ron...you told me that those where this months Hooters receipts!! Which is it? ---:lglolly:

I wish, this fuel thing is getting sick. april 2008 was the highest in my companys history.

I also have sales people driving more. We have bought new vehicles and parking 1 tons.

I may sell the one ton trucks, Tired of gas and costs of maint.

Its real, it hurts no matter what anyone wants to believe about the returns.

Customers are not liking the price increases accross the board.

So far we have been extremly lucky in that we keep increasing buz and have not had cancelation.

[Ron Musgraves 240]

"Do we really care about the cost of gas?"

... of course!!!!

I understand that price can/could/should be passed onto the end user or consumer, but anything that affects my price, costs & margins - I care and care in a big way!

From my perspective, I am focused on growing my PW business and gas prices make a difference... why?

1) Client Acquisition

I need exposure and face to face contact with potential clients to develop my brand and sell the benefits of my service. yes this can be done through marketing materials and phone/email, but probably would not be as effective as face to face and a handshake, which involves driving to various locations... therefore I care about the cost of gas

2) Cost of Jobs

Initially, jobs are taking longer - partly due to a need to develop more efficient practices which will come with experience and partly due to taking extra time to ensure job is more than satisfactory (which is currently the case according to client feedback!!!:))

this means I am using more gas... therefore I care about the cost of gas

3) Economic conditions

As has already been mentioned, the gas price increases have affected things we buy for the household and business - requiring us to make more money to continue to get by. In my situation, in the early stages of this business, making more money costs more money (being a 'mobile contract cleaner' means more gas)... therefore I care about the cost of gas.

Don't get me wrong, I would not use the cost of gas as an excuse for poor business performance, but I would be foolish to say that I didn't care.

I am giving my perspective as a new entrant in the PW industry.

I also run a Swimming Pool Service Company - how many accounts have I lost in the last 6 months...45!!!... no, it wasn't due to poor service or overpricing. 40 of the accounts belonged to a management company who decided to take services in-house to reduce their costs and 5 private accounts, again, who were very happy with their service had to cut their household expenses.

Just my input from a different perspective...

Good post,

[Beth n Rod 1,279]

Ok, it's June...how is everyone feeling about fuel costs and the economy now?

Beth

[Mike Williamson 198]

Ok, it's June...how is everyone feeling about fuel costs and the economy now?

Beth

I'll be having the hitch installed on my wife's Bonneville this week... :)

Seriously, it kinda sucks, but all increased costs mean is increased rates. When it gets to the point where the increased gas prices can't be simply absorbed, we must raise our prices, as everyone else has to.

I'm just thankful that God has blessed me to have enough money to be able to fill my tank every week, as well as buy groceries and keep the lights on. Things could be much much worse. And maybe they'll get there. Who knows. I'll just keep plugging away, trusting in the one who guides my steps. He's never failed me yet. I've never gone hungry, I've never been homeless, I've never been unable to provide for my family. The future doesn't scare me because I have the experiences of the past to reference.

[alvisishere 66]

I'll be having the hitch installed on my wife's Bonneville this week... :)

Seriously, it kinda sucks, but all increased costs mean is increased rates. When it gets to the point where the increased gas prices can't be simply absorbed, we must raise our prices, as everyone else has to.

I'm just thankful that God has blessed me to have enough money to be able to fill my tank every week, as well as buy groceries and keep the lights on. Things could be much much worse. And maybe they'll get there. Who knows. I'll just keep plugging away, trusting in the one who guides my steps. He's never failed me yet. I've never gone hungry, I've never been homeless, I've never been unable to provide for my family. The future doesn't scare me because I have the experiences of the past to reference.

Mike

Great Post, my feelings as well, Your response shows your integrity, Its always nice to read posts like that.

"If we don't don't go through the Valleys, We won't reach the Peaks!

[MMI Enterprises 289]

"If we don't don't go through the Valleys, We won't reach the Peaks!"

"If current price of oil and gas are the valley I've not enough air to ever have chance at seeing the peak."

[alvisishere 66]

"If we don't don't go through the Valleys, We won't reach the Peaks!"

"If current price of oil and gas are the valley I've not enough air to ever have chance at seeing the peak."

What gripes me is one station in my area sells diesel for 4.99 and one block away they sell it for .30 cheaper, talk about gauging!!!!!

[MMI Enterprises 289]

Yup..the more something is the more its profit range tends to vary. With such wide fluctuations going on now ya can't even tell if one minion station owner is reaping a few cent more than another.

[Mike Williamson 198]

What gripes me is one station in my area sells diesel for 4.99 and one block away they sell it for .30 cheaper, talk about gauging!!!!!

I'm sure what gripes some homeowners is that one pressurewasher in their area sells housewashes for $200.00, and someone else sells them $30.00 cheaper! Talk about gouging!

[Beth n Rod 1,279]

How is everyone's cash flow compared to last year this time?

Beth

[Ron Musgraves 240]

How is everyone's cash flow compared to last year this time?

Beth

Since my fuel bills are higher than they have ever been in 25 years, becuase keep growing they keep getting bigger.

[MudDuck 20]

Where are the idiots that a year ago were saying "so what if it goes up to 3.00, thats only going to cost you what...another 2.00 out of pocket for a tank"...Right, you just wait. The gas will be bad enough but thats not your problem,,it's the 8.00 gal of milk, the 4.50 loaf of bread and the pint of strawberries that are 28.50. You'll be bragging to your grand kids one day that you used to could get strawberries in January from California or oranges from Fl. whenever you wanted. WOW!!! REALLY? That 60 grand is all you need for "esentuals" will be like trying to live off min wage.

5 years from now THE CHEAPEST thing your company will do will be the advertising!! Low ballers will probly diminish but quality of work will probly suffer due to those of us who can not afford to order chem's by the tractor trailor load just to justify the shipping cost won't have them. Company's like PT or SunBrite online biz will go out of biz, if Wally World don't sell it you won't have it. Your prices will go down not up because something is better than nothing.

Just pass it on to the custormer....LOL....Thats what going to be the problem very shortly...Just remember...YOU ARE THE CUSTOMER 99% of the time!

Ahhhh...the good o'l days......

[Mike Williamson 198]

Where are the idiots that a year ago were saying "so what if it goes up to 3.00, thats only going to cost you what...another 2.00 out of pocket for a tank"...Right, you just wait. The gas will be bad enough but thats not your problem,,it's the 8.00 gal of milk, the 4.50 loaf of bread and the pint of strawberries that are 28.50. You'll be bragging to your grand kids one day that you used to could get strawberries in January from California or oranges from Fl. whenever you wanted. WOW!!! REALLY? That 60 grand is all you need for "esentuals" will be like trying to live off min wage.

5 years from now THE CHEAPEST thing your company will do will be the advertising!! Low ballers will probly diminish but quality of work will probly suffer due to those of us who can not afford to order chem's by the tractor trailor load just to justify the shipping cost won't have them. Company's like PT or SunBrite online biz will go out of biz, if Wally World don't sell it you won't have it. Your prices will go down not up because something is better than nothing.

Just pass it on to the custormer....LOL....Thats what going to be the problem very shortly...Just remember...YOU ARE THE CUSTOMER 99% of the time!

Ahhhh...the good o'l days......

Is it time to buy a milk cow and start a garden? Thank God I live in Florida and have plenty of room to grow food if need be!