Question: Fuel Surcharge or Price Increase?

Due to the cooler spring I haven't started landscaping yet.
I haven't contacted many of my customers yet but with the price of gas continuing to increase I will have to address this with them.

I've been debating a fuel surcharge vs a general price increase. Though looking through lawn care forums many do not like a fuel surcharge.

What I was thinking is if I just need to use my fuel efficient car for a job no price change but if I have to use the truck or truck and trailer the price will increase. Ackkk! I'm so confused.

Any thoughts??

I would find hidden ways to pad your numbers if possible. There is a risk of people canceling service otherwise. Charge more for particular things or new customers just signing on. *shrugs*

There's several services I pay for that I have been debating canceling to save money, and a call w/ a price increase from one would probably be the first.

I completely agree! A fuel surcharge might make a customer think you don't appreciate his business, since he's so far away, y'know? And it inevitably sparks thoughts of looking for a service closer by. I admire your instinct to handle it fairly and only charge more for the people who cost you more -- but I think it would be a big risk. Good luck!

Because we live out of time, our petsitter was charging us a set fee, plus $1.00 extra per mile once she crossed a certain point in town, adding an extra $8 per visit or $16 per day...that was just for her gas. She eventually gave it up and just increased her basic services.

I think I'd sit down and figure out who your best customers are and don't increase their fees. For new customers and for those you don't deal with very often, think about increasing fees.

In this economy, I don't like having to pay increased fees myself, but I also think about people like you who rely on your vehicles. You can only eat the gas increases for so long before you start losing out. And you have to make a living, too.

Good luck, Gail.

Very tough economy with these gas prices if your business relies on driving which mine does. Dog-walking service. I had to increase my visits $1.00 (just a general increase, not mentioning gas, although I am sure they know that is the reason) so now my visits are $16.00 for a half-hour walk. I also had to give some of my clients to another sitter who lives closer to those particular clients because I was only going to be making about $3.00 per visit after gas to get there) With these gas prices I am wondering how I will make ends meet with all the driving involved to get from client to client. And, some people are cancelling service anyway because they just can't afford it anymore. I am very concerned about the future of my business with these gas prices....

The clients that I do the most driving for are big commercial accounts. I haven't increased their prices for a couple of years though have started charging for my time when plant looking or buying.