# Fuel surcharge



## fireside (Mar 1, 2008)

Hey guys, with everything on cost raising at uncontrollable rates Im just in a hard spot boy. Most of my clients think snowplowing is way to expensive and looking for rates to drop 25%. Well in my area salt is up $37 per ton over last year fuel in past week is up another .34 cents so 1.59 per gallon over last year and climbing everyday. Insurance is out of control in CT. Just simple maintenance has doubled. Not to mention no work force or they want 50 plus per hour!
My thought is put fuel surcharge ans salt fair market value clause to make them 
Happy or just close the damn doors.
I’m open to suggestions or contract language.


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## EWSplow (Dec 4, 2012)

fireside said:


> Hey guys, with everything on cost raising at uncontrollable rates Im just in a hard spot boy. Most of my clients think snowplowing is way to expensive and looking for rates to drop 25%. Well in my area salt is up $37 per ton over last year fuel in past week is up another .34 cents so 1.59 per gallon over last year and climbing everyday. Insurance is out of control in CT. Just simple maintenance has doubled. Not to mention no work force or they want 50 plus per hour!
> My thought is put fuel surcharge ans salt fair market value clause to make them
> Happy or just close the damn doors.
> I'm open to suggestions or contract language.


I'd close the damn doors, but that's just me. 
I don't think the average person is aware of fuel surcharges. Perhaps some commercial and industrial clients have experienced it from suppliers. 
I've given up on finding sidewalk help.


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## Mark Oomkes (Dec 10, 2000)

No idea how this would work for residentials, but this is our fuel surcharge clause:

_A fuel surcharge of $2.50/hour per truck will be added for each $.25/gallon above $4.00 for diesel fuel._

I'm working on some verbiage for quotes for next season as well as what I might do on existing contracts.

Here's our salt pricing verbiage:

*Please note we will do our best to obtain salt and chemicals. There may be price increases if salt or chemicals are in short supply. If we are unable to obtain chemicals we will not perform these services.*

Got another email from SiteOne, bulk urea is up 26% in the last month. So far salt is about the same, but labor and fuel are crazy.

There is no way I am guaranteeing pricing for next season if I give it out right now as some are requesting.


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## m_ice (Aug 12, 2012)

Mark Oomkes said:


> No idea how this would work for residentials, but this is our fuel surcharge clause:
> 
> _A fuel surcharge of $2.50/hour per truck will be added for each $.25/gallon above $4.00 for diesel fuel._
> 
> ...


Just heard from site 1 that fert prices were going up another 25% next year...we don't buy from site one but are locking in pricing with our supplier now.


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## theplowmeister (Nov 14, 2006)

whats a "fert"


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## m_ice (Aug 12, 2012)

Fertilizer


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## fireside (Mar 1, 2008)

We are 100% commercial. I do a bunch of office buildings that where almost full before Covid now less than 50% so they are looking to save money. I have thrown options of block off parking area. I mean close them off no access with snow piles. Owner says it makes him look bad ok thsn pay the snowplowing bill. Other clients where telling me how much stuff had gone up including delivery surcharges. It is what it is they claim do why not Snow I just went up 12% no way. I cant imagine what the guys who don’t buy bulk are going to pay rumor on playground is 200 a ton.


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## fireside (Mar 1, 2008)

I’m a small company couple of trucks, skidsteer and two loaders. So I can’t just absorb the cost increases. Good part is everything is payed for as it’s bought so if I scale back it can sit with zero payments to worry about.


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## leolkfrm (Mar 11, 2010)

only take the jobs that are willing to pay a fair price, and control your costs


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## WIPensFan (Jan 31, 2009)

leolkfrm said:


> only take the jobs that are willing to pay a fair price, and control your costs


If only it were that easy…


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## nor'easter1 (Jan 28, 2003)

Fireside I read you loud and clear. Personally I'm on my last two years which will make (30yr) and it's time to call it a career. Like anything I suppose one does for a while you gain a ton of knowledge and a ton of mental scar tissue as I call it. At my stage a sunburn in Feb sounds a lot better than trying to be the last guy standing..... not thriving, and I'm glad I was around when thriving was an obtainable, reachable goal.


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## fireside (Mar 1, 2008)

I met a client the other day about snow. Had the hard conversations about run away cost so on. He understands than point to the menu board all prices are up! I do four locations for him. Finically a client who understands. He made mention that I need to make a profit to remain in business Another client fought tooth and nail no increase ha ***** I had taken down his two signs one for delivery fuel surcharge and Sheetrock increase. Ok he is not signing oh well. Than I asked about his increase ha handed him the signs hmmm! Ok he signed. Four down


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## Chineau (Aug 24, 2010)

did this idea fall off the conversation board?


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## jonniesmooth (Dec 5, 2008)

My fuel surcharge paragraph is this:
If gasoline or diesel fuel goes above $4/ gal during a month, a $20 surcharge will be applied to that month's invoice.

I like Mark's tiered method.

Ps, prices did go up to cover fuel price increases up to $4.00


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## abbe (Sep 8, 2009)

Bumping this back up as diesel fuel goes through the roof and Im seeing $5.75 and more here in RI. Hows everyone surcharging for this?


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