Fuel prices

Fuel cost for me last year was about 1.25% of my overall revenue..... May have driven 10,000 miles between my three trucks. Then use Prius for personal and quotes... Definitely could see the increase hurting if driving a lot.
 
How much will the increase in fuel prices affect the Bottom line, not the Top line?





I'm thankful to have a very developed a very small service area. My chipper is pretty fuel efficient.
 
ATH said:
Talk to that big client...a simple: "Hey, are you upping what you bid to cover cost increases?" opens the door for discussion without sounding demanding. If they say "no", then decide if you want to take the hot...or maybe you only spend 15-20% of your time there and more time with other clients who are more accommodating going forward. If he says "yes", ask for an extra $5 per hour. $55 is "as round" as $50. $52.73 is just odd. Even though you may not need the full $5 now, costs will go up in a year. Take it now and don't ask again next year.
Click to expand...
This sounds like a good way to go.
Back in July I told my furthest out (distance-wise) client i subcontract for, that I would raise the rate at the end of the year. I spoke with him about my inkling that all the money creation was undermining the worth of dollars and suggested he pass the increase to clients.
My ask (at end of year) was a bit high to him at first, but then after a while they realized it just is what it is, I am focusing on more local work, and that rate is what it takes to bring me out there for now.

There is plenty of writing on the wall that inflation is here and happening. Gas may be obvious but there are many prices going up.

Going up 10% may not even be a raise.

At least on the bright side for us, is that good workers are in short supply; and many folks did stack savings over the past couple years of missed travel, relief money, or focusing on work more, etc. I am pushing my limit of what my day is worth based on the honesty of what needs to come in week by week. If it's honest, folks can be indignant but at least you know it's above board.
 
  • Like
Reactions: ATH
You need assess a fuel charge onto your bill. It can be the increased cost of diesel. If you estimate 10 gallons of fuel for the job and your normal disel price was $3 a gallon and now it is $5.30 2.30x10 $23 surcharge. When prices go back to normal you can stop charging it.
 
Al_trees said:
You need assess a fuel charge onto your bill. It can be the increased cost of diesel. If you estimate 10 gallons of fuel for the job and your normal disel price was $3 a gallon and now it is $5.30 2.30x10 $23 surcharge. When prices go back to normal you can stop charging it.
Click to expand...
I get the idea, but I've always thought "fuel surcharges" (or any surcharges) are tacky and feel underhanded - kinda like a ticket purchasing fee even when you buy tickets directly from the venue (different than buying from 3rd party). Just give me the price. Instead of quoting me $1500, quote me $1525.
 
Depending on the work we’re doing, fuel costs are 8-12% annually.

I’ve gone to an electric car, the current car has used 4094kWh of electricity driving 12.1k miles (.338kWh/mi). I pay $.12kWh charging at home, and an average of $.29kWh super charging while traveling.

Today I had 1065 gallons delivered for $.46/gallon cheaper than what I’d pay at Love’s after the credit card’s cash back.

On my pending work I’ll absorb the fuel cost difference, newly bid work will absorb fuel costs either way.

Contracted work where your pricing future work far in advance can have fuel contingencies, especially fuel intensive work like moving debris with a grapple truck.
 
I'm with ATH, and just build it into the overall price. I used to break out items on a job individually price-wise, but stopped doing it years ago. In my experience people want a simple and singular number to give a yes or no on, the details don't matter.

Personally I don't really care about the price of fuel, can't work without it so it's just one of the costs of doing business that you pass on to the customer. Once I build my own shop, I hope to have a diesel tank that I can fill my trucks with for convenience and to save a few bucks though.
 
treebing said:
i feel like real creativity will start getting viable at around 8$ to 9$ a gallon. even at 4$ its still too cheap to really compete with the dead dinosaurs with manpower and ingenuity. fuck cars.
Click to expand...
Yeah this was bananas. But wanted to score my buddy some mushroom logs and the commute was an hour plus.
 
Artificially propped up subsidized cheap oil has made us all lazy with a tendency to solve problems with excessive amounts of power. I love the hatchback set up. its amazing what can be done with a hatchback with the rear seats out.
 
evo said:
That is one of the mind fucks I’m tripping about right now. I can sell my first chipper, f-250 and dump insert and walk away with much more than what I bought them for 8 years ago…
Click to expand...
And you’d be selling it to someone that actually wants to work. Unfortunately, the o Lu way to benefit your bank account is if what you’re selling is redundant and no longer needed.

My wife and I recently sold our house and bought another. We got a fair amount more than what the first one was purchased for, but we also had to buy the new one for more than it was valued at.

It makes me laugh when just 5 years ago, you could find countless Craigslist ads from people selling a rotten, broken down Dodge 3500 with a 12 valve Cummins in it. They’re usually strongly worded like “don’t low ball me. I know what I have. Motor alone is worth $10,000.” We’ll, now they might actually be able to sell it for what they’re asking.
 
oceans said:
And you’d be selling it to someone that actually wants to work. Unfortunately, the o Lu way to benefit your bank account is if what you’re selling is redundant and no longer needed.

My wife and I recently sold our house and bought another. We got a fair amount more than what the first one was purchased for, but we also had to buy the new one for more than it was valued at.

It makes me laugh when just 5 years ago, you could find countless Craigslist ads from people selling a rotten, broken down Dodge 3500 with a 12 valve Cummins in it. They’re usually strongly worded like “don’t low ball me. I know what I have. Motor alone is worth $10,000.” We’ll, now they might actually be able to sell it for what they’re asking.
Click to expand...
I think I’ve officially sold out. I’m slowly raising my rates significantly, giving cost of living increases for sure. But I cannot sustain like this, tired of scrambling and soon I will likely be the highest priced arb in my area.
 
evo said:
I think I’ve officially sold out. I’m slowly raising my rates significantly, giving cost of living increases for sure. But I cannot sustain like this, tired of scrambling and soon I will likely be the highest priced arb in my area.
Click to expand...
Being the highest priced arborist in your area can be a good thing in my opinion. It can mean you are more educated and offer expertise and or services that other companies in your market can’t. Or it can mean you just value your time and your company’s bottom line more than your competition does. We all get so many days on this big playground and while we are here we get to decide what to charge for our services and time but the market determines if those charges are excessive. If your schedule is full and/or your client list is expanding, the market accepts the value you bring to the table. If not, it is time to re-examine.
 
evo said:
I think I’ve officially sold out. I’m slowly raising my rates significantly, giving cost of living increases for sure. But I cannot sustain like this, tired of scrambling and soon I will likely be the highest priced arb in my area.
Click to expand...
I used to think a low price was a good thing to offer, but after enough time has gone by, I see it much differently. Assuming one is dedicated to the trade, the worst thing to do is run at a thin margin. It can foster lower quality and reduced safety,

Further, it can filter down through the care provided to everything and everyone involved. Less maintenance on equipment, which may end up leaking or falling apart, or on the verge of catastrophic failure with a person in it. The inability to hire enough people to delegate tasks to, leaving co-workers overly stressed and making poor decisions…use your imagination and go on and on…just look at supply chains right now. Those years of low prices are really paying off now, eh?

I’m not suggesting blatant gouging, but to provide enough at the end of the day is actually the whole point.
 
I honestly don't entirely know where I am on the local scale. Not the cheapest...I'm sure of that. Pretty sure we aren't the most expensive.

I bid what it takes to keep running and put some away to grow the company and call that enough. Certainly have bumped up rates this year to cover all of the added expenses. Bumped employee pay and getting ready to do that again because everything got more expensive for them too!
 
ATH said:
I honestly don't entirely know where I am on the local scale. Not the cheapest...I'm sure of that. Pretty sure we aren't the most expensive.

I bid what it takes to keep running and put some away to grow the company and call that enough. Certainly have bumped up rates this year to cover all of the added expenses. Bumped employee pay and getting ready to do that again because everything got more expensive for them too!
Click to expand...
This has been my approach as well. I’m not saying I’m the best but in my area (island) the bar is pretty damn low!
The other companies seem to price the job by the property value, or the car in the driveway!
Unfortunately many of the customer base seems to value removal over maintenance.
We are in a massive housing crisis coupled with this inflation.
 
  • Like
Reactions: ATH
You must log in or register to reply here.

New threads New posts

Kask Stihl NORTHEASTERN Arborists Wesspur TreeStuff.com Teufelberger Westminster X-Rigging Teufelberger
Back
Top Bottom