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#60883 - 01/12/06 05:35 AM Fuel Surcharge
LearJet9 Offline
Registered: 04/24/05
Posts: 196
Loc: Millis, MA USA
Wanted to touch on this again as fuel prices are rising. [like everything else]
We are discussing an across the board fuel surcharge. Is anyone els doing this? Flat charge? By the mile? By the invoice? Just looking for some ideas or alternatives.
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#60884 - 01/12/06 05:57 AM Re: Fuel Surcharge
Dnkldorf Offline
Registered: 12/12/04
Posts: 1091
Loc: nowhere usa
My trash company has just started this, charging a fuel surcharge. So i ask them, since fuel dropped from $3.30/gal to $2.20/gal, when will this go away?

I got the "duh, well, sometimes when,Duh, I really don't know....."

I'm starting to think if they can do it, why not us?

#60885 - 01/12/06 06:34 AM Re: Fuel Surcharge
mshaw Offline
Registered: 01/11/06
Posts: 45
Loc: Fairborn, Oh, USA
All of my sub-contractors charge what is called a "temporary fuel surcharge" The surcharge is around $8.00-$10.00 per service call. This can add up fast for me as I may have several service calls a day for various trades. We are able to negociate this with them by having them charge us for one service call and fuel surcharge and we try to line up several calls so they only have to make one trip.
#60886 - 01/12/06 08:31 AM Re: Fuel Surcharge
SvenNYC Offline
Registered: 08/19/02
Posts: 1685
Loc: New York City
Sorry guys, but this seems a bit too underhanded for my taste.

If fuel prices are rising, why not just up the total price you charge for a job instead of adding surcharges here and there? I would think it's normal that prices rise as the cost of doing business goes up.

When and IF the fuel price drops, then the rate you charge can drop in proportion, no?

No offense, but this has always kind of 1) riled me and 2) made me scratch my head in confusion.
#60887 - 01/12/06 10:38 AM Re: Fuel Surcharge
Lostazhell Offline
Registered: 02/21/04
Posts: 1248
Loc: Bakersfield, CA (Originally Or...
The service company I work for charges a certain "service charge" just for starting the truck and going to a call. If we actually do the work, the service charge goes away (unless its an after hours call, then it's additional) but either way, my overhead is figured in... no matter what gas prices do.
#60888 - 01/12/06 12:55 PM Re: Fuel Surcharge
Radar Offline
Registered: 04/30/04
Posts: 349
Loc: Los Angeles, CA
To me, it kinda makes a difference on how you run your business. For example, if you generally figure all your costs for a job, then apply an overall markup to take care of overhead (OH) and prifit (P), then the anticipated or current cost of fuel can simply be figured into the project cost estimate (and marked up like everything else).

On the other hand, if you generally quote a billing labor rate, and add your material costs with a nominal markup, you can't very well have your labor billing rate bounce up and down every day, so maybe a fuel sur-charge is an acceptable way to go.

Different business models demand a different approach. What's your business model?

There are 10 types of people. Those who know binary, and those who don't.
#60889 - 01/12/06 01:27 PM Re: Fuel Surcharge
walrus Offline
Registered: 07/25/02
Posts: 671
Loc: Bangor Me. USA
I charge .55 cents a mile but all my work is for oil companies
The oil companies have a fuel surcharge for delivery of gas to the stations.

Every delivery company I do business with has a fuel surcharge, UPS changes daily it seems and they even post their formula at their locations and probaly on their website.
#60890 - 01/12/06 02:11 PM Re: Fuel Surcharge
Dnkldorf Offline
Registered: 12/12/04
Posts: 1091
Loc: nowhere usa
I like Svens idea....
It's simple...

#60891 - 01/12/06 07:09 PM Re: Fuel Surcharge
Active 1 Offline
Registered: 02/22/03
Posts: 684
Loc: Grayslake IL, USA
I think it should be included in the cost of doing biz. I about fell out of my chair laughing when I ordered a crane not long ago from a place not far from the job. Guy on the phone said "$350 for an hour.... PLUS GAS".

Just seems better to include it in your price.

#60892 - 01/13/06 09:42 PM Re: Fuel Surcharge
u2slow Offline
Registered: 09/18/03
Posts: 198
Loc: Salt Spring, BC, Canada
What I notice when I'm charged a fuel surcharge on a delivery, is that its usually not quoted. It just shows up on the bill like an extra sales tax.

IMO its an underhanded technique that lets the cut-throat transport industry quote artificially low rates.

Why not have a driver surcharge, and truck surcharge, and a load/unload surcharge? Then quote FREE delivery!
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