? due to high $ for gas.

[BSWIFT]

I understand that people across the country are being impacted by the sudden jump in fuel prices, many have been suffering from the poor economy so pointing out the obvious is not necessary.
I operate a service/installation business. On the service side, I can operated with a 6' ladder, basic hand tools, and some test equipment relatively easily. On the flip side, the installation portion of my business requires that I have a large variety of misc. parts and NEW products which I install. In all, I probably carry 1000 + lbs of equipment and parts everyday. This obviouly cuts into the fuel usage of my truck. I could scale it back and pic up what I need, as needed but that takes time away from the work and would cause me to drive even further to accomplish jobs that I make 1 trip on currently.
I try to operated as efficiently as possible and currently the price of fuel is making the "break even" point harder to meet. So which option is the "least" offensive.
#1, add a surcharge for fuel on every call.
#2, add a $1 or $2 per hour on my rates.
#3, lighten the load, drive more, bill more hours, get less work done.
#4, go to a 4 day work week and do 7 days work in 4.
I went thru this a couple of years ago and as the price of fuel came back down, I kept the 2.5% rate increase. The last couple of years has seen most of that increase eaten up by insurance rate increases so I'm back to making that hard choice again. If you have a better idea.......

 

[Chili]

As a customer I really get annoyed with the surcharge stuff, personally I'd rather just know that your hourly rate is X and that's what I'll be paying.

 

[whenfoxforks-ruled]

Unlike the oil companies, we do not control our material prices. Solder is going from 16 dollars to 26 per pound. Lead, brass and bronze fittings and holy cow at all the new permits! What would really be nice, is if the work got back steady enough to see! Never in recorded history has home remodeling been this bad. What do people do when they can not afford to call the plumber is what is scary. Pass the buck.

 

[oldguy]

Gotta agree with Chili the #2 option is the one I as a customer would be more likely to not notice. #3 just adds wear and tear on the vehicle into the problem #1 just isn't one I want to see on a bill and it doesn't cover you on extra runs #4 you would be to exhausted to ride anymore

 

[BSWIFT]

Thanks guys. I went with method #2 a couple of years back. I will hold steady for a week or two to decide but the flat rate increase is likely the only real answer. Everything that I sell or use for installation has or is seeing a 15% increase in price this quarter and I just cannot eat all of the increases.
I feel lucky to be as busy as I am, especially this time of year. This hike in fuel prices just hurts everyone that has to use a vehicle to make a living, not forgetting that everyday commuters are getting hosed as well. Hard to make a budget when there is no stability in your expenses.

 

[2strokerfun]

I am busier than I have ever been in my life right now, yet feel like the more I work, the more money I lose. I'm bound to contractual billing rate with my clients with no wiggle room. No rate increase in last 7 years, yet overhead is going through the roof. If I attempt to raise rates, giant insurance clients just go to a cheaper firm. You need to set your hourly at a price that keeps you in the black. You aren't doing yourself or your clients any favor by losing money. A six-hour, two man job is going to cost your client an extra $24 if you raise your hourly $2. Doesn't really sound that bad compared to going out of business !!

 

[Uchytil]

Unlike the oil companies, we do not control our material prices. Solder is going from 16 dollars to 26 per pound. Lead, brass and bronze fittings and holy cow at all the new permits! What would really be nice, is if the work got back steady enough to see! Never in recorded history has home remodeling been this bad. What do people do when they can not afford to call the plumber is what is scary. Pass the buck.

I completely understand your pain. The township I live raised the permit fees so much that a homeowner is more likely to hire a "handyman", or do it themselves, to install a toilet. This way they can avoid the permit fee (which is not really legal). The fee now is about half the price of the toilet which the plumber has to pass on to the homeowner. I spent about $2000 in permit fees just for a bath rough-in & finish, mechanical, electrical, and building premits for an upstair remodel. Add the cost of the trades and whoa!

 

[sm7482]

the crazy thing is the gas itself. almost all the gas is being mixed with ethenol, yeah it burns cleaner but you don't get anywhere near the same fuel milage as when it was just petrol. the ironic part? it's not cheaper, whats that mean? more for less. we pay more for this petrol/ethanol mix and don't get better fuel milage. now the government wants to pressure a switch from 10% to 15%. it doesn't seem to get any cheaper either.

 

[High Lord Gomer]

#2

Existing customers should understand and new ones probably won't notice.