Fuel Surcharges_ - Business - Contractor Talk

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4/24/13 Fuel Surcharges? - Business - Contractor Talk

www.contractortalk.com/f16/fuel-surcharges-22282/

05-12-2007, 04:16

PM#2

GregSPro

Trade: LowVoltageJoin Date: Oct2006Location:Burlington,OntarioPosts: 1,431

Re: Fuel Surcharges?

I'd have to treat it as part of the cost of materials.

I sign a contract with a builder to install X amount of copper around a house. So copperdoubles in price over the course of the year that I am installing, I still have to honourthat original price.

Could you try and negotiate it with the supplier? Maybe if you buy >X amount of material

that you get the fee waived?

05-12-2007, 04:36 PM #3

Diesel65Pro

Trade: HVAC Contractor/General C ontractorJoin Date: Jan 2007Location: West Palm FloridaPosts: 145


I would just add that to t he material cost before markup. Andas far as permit fees go, they are added to my contract aftermarkup, no one want's to see surcharges on a contract,or inaddition too, so just make it part of the material cost.

Why should that come out of your pocket ! that is your profit

you are giving away.

05-12-2007, 05:49 PM #4

dougchipsInsert title

Trade: Doors-Windows-DecksJoin Date: Apr 2006Location: MA&RIPosts: 4,684


I ordered a few dumpsters from rape management a few yearsago and was hit with some heavy fuel charges. They quoted aprice, said nothing about the sur-charges and said they wouldsend it to collections if I didn't pay them. They were also niceenough to pick the dumpsters up late so they could fill withsnow and ice and weight more.

I don't really care to much about what I pay so long as I knowthe price before I sign on the dotted line.

__________________To get the best replacement windows, or sun rooms contactthe replacement windows experts at FHI Vinyl WindowCompany.

05-12-2007, 08:55 PM #5

POOLMANinCTPro


I just treat it as cost of goods/supply...

ed be happy yiur vendor hasn't cut back on shipping, mines cuttheir distribution truck runs to just wends & friday...

I'd rather pay a suecharge than wait.....

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3/8



Trade: Swimming PoolContractorJoin Date: Oct 2006Posts: 2,166

ray__________________

......Less with the jaw & More with the paw.....

05-12-2007, 11:00 PM #6

PatrickPro

Trade: Siding, Windows,Seamless Gutters, MetalRoofingJoin Date: Apr 2006Posts: 2,787


Doug, I use rape managements transfer station to dump mytrailer and they charge me by the half ton and then on top ofthat theres a environmental fee, ok no big deal but then rightbelow that is a second surcharge listed as "fuel surcharge"WTF? I bring my trailer to them and I dump it!!!!!!!!!!!!!!!!

Theyre not givin me any money for gas!!!!!!!

05-12-2007, 11:28 PM #7

Ed the RooferPro

Trade: Roofing Contractor

Join Date: Dec 2006Location: NW Suburbs ofChicagoPosts: 7,131


Patrick,

That is more of the potentially hazardous waters I wasattempting to breach, without rocking the customers boat.

Could we ethically be supplementing our out of pocketexpenses for fuel increases by adding a minute clause requiringa modicum of a surcharge for the same rationale?

At even $ 5.00 to $ 15.00 (use $ 5.00 as an example) per day x5 days x 50 weeks = $ 1,250.00 or if $ 15.00 per day = $3,750.00

Neither amount is c hump change, but would it be worth thepotential customer scrutinization if handled in a direct businesslike manner?

Ed

05-13-2007, 07:03 AM #8

PatrickPro

Trade: Siding, Windows,Seamless Gutters, MetalRoofingJoin Date: Apr 2006Posts: 2,787


Ed I have always felt that by having charges listed on the

invoice or contract make people feel like you are nickel anddiming them. It just seems kinda tacky the higher the price tagon the job the tackier it seems. Fuel should be part of your

overhead and delivery charges should just be part of materialscost. Along the same lines if you put your fuel surcharge as aline item should you then have a fuel charge listed for eachsub. I think the only time that its appropriate is if the job is in areally secluded area and the customer understands that theylive in the middle of nowhere and its just part of the price they

have to pay for peace and quiet

05-13-2007, 10:26 AM #9
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4/8



ruskentPro

Trade: Outdoor D/BJoin Date: Jun 2005Posts: 1,894


When i cut lawns back in the day, i'd always tack on a fuelsurcharge on each months bill.

Everyone paid it with out complaing.

I bet you could do any type of job and on the final invoice tackon a sur charge and people would pay.

05-13-2007, 01:57 PM #10

Charles BagleyMember

Trade: LandscapingJoin Date: Feb 2007

Posts: 52


Seeing a fuel surcharge on invoices chaps me to no end. I seeit as a way to nickel and dime the customer. I think the priceshould be figured in materials or cost of overhead. Why do they

stop at fuel surcharges. Electricity has gone up in places, rent,insurance, ect. Why don't we see surcharges for those? I thinkall these cost should be figured in your original quote.

05-13-2007, 02:18 PM #11

Ed the RooferPro

Trade: Roofing ContractorJoin Date: Dec 2006Location: NW Suburbs ofChicagoPosts: 7,131


Yeah,

I do agree about how I feel evey time I get the fee assesed tome, and I am sure most HO's would find it objectionable.

See, it worked for Ruskent, and he is not so hung over todayfrom celebrating his 21st B'day to make sense still.

Happy Birthday.

I was just exploring a minor line item thought, that if containedwithin a clause that ther "may" be a fuel surcharge added on atthe final invoice and it was listed, then it would not bescrutinized.

Or, a line item for miscellaneous fees.

Look at you bill from a Firestone or Goodyear machanicsgarage. They always include a "micellaneous" shop accesoriescharge. I, personally do not accept that charge, but how many

percentages of people do not object and just accept it as apart of life?

Ed

05-13-2007, 02:39 PM #12

dougchipsInsert title

Trade: Doors-Windows-DecksJoin Date: Apr 2006Location: MA&RI


Shop fees, sort of like the $19.95 oil changes that add $3.00for enviromental fees. The sign says $19.95 and I want to pay$19.95 plus tax, if enviromental fees have to paid then the$19.95 should be $22.95. We all shrug, pay the fee and moveon with life. I'll have to ask them the next time to put my old oilin some cans and I will take it home just to see what they do.

__________________To get the best replacement windows, or sun rooms contactthe replacement windows experts at FHI Vinyl WindowCompany.
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5/8



Posts: 4,684

05-13-2007, 03:48 PM #13

RussellFPro

Trade: RemodelingJoin Date: Aug 2006Location: Foxboro, Ma.Posts: 137


Quote:

Originally Posted by Charles Bagley

Seeing a fuel surcharge on invoices chaps me to no

end. I see it as a way to nickel and dime the

customer. I think the price should be figured in

materials or cost of overhead. Why do they stop atfuel surcharges. Elect ricity has gone up in places, rent,

insurance, ec t. Why don't we see surcharges for

those? I think all these cost should be figured in your

original quote.

The way things are going, there may come a day when the

customer will tell us they want us to use a generator instead ofusing their household electricity.

05-13-2007, 03:52 PM #14

Ed the RooferPro

Trade: Roofing ContractorJoin Date: Dec 2006Location: NW Suburbs ofChicagoPosts: 7,131


I had a customer one time about 10-12 years ago give me thebill from his electric company for using his elecricity t o use ourskill saws for wood dec king replacement. He wanted me to paythe difference from the previous years monthly bill to thecurrent one.

After that job, I added a clause that the HO is responsible forsupplying any and all utilities required to complete the job.

Cheap bazztard.

Ed

Last edited by Ed the Roofer; 05-14-2007 at 06:49 AM.

05-13-2007, 05:52 PM #15

TeetorbiltPro

Trade: Residential C ontractorJoin Date: Feb 2004Location: Jensen Beach, FLPosts: 10,474


FP&L (elec. co.) is constantly tacking on surcharges. Samewith garbage pickup. Only a complete moron wouldn't knowwhat's going on.

__________________You can't solve you're problems with the same level of thinkingthat created the problems.

Albert Einstein

05-13-2007, 11:15 PM #16

Mud MasterCommercial Contractor

Trade: Commercial General


BGE(Baltimore Gas & Electric), a Constellation Energy Company,is our local utility supplier.

The have been implimenting a 72% increase in electric for 2years now..YOU SHOULD SEE MY BILL!!!

I am installing a windmill in my back yard....__________________

Quote:
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6/8



ContractorJoin Date: Feb 2007Location: Baltimore, MDPosts: 1,948

Originally Posted by katoman

And when the day is done, I can look myself in the

mirror, with pride, and say " you're a c raftsman, well

done. "

Maryland Commercial General Contractor

05-13-2007, 11:20 PM #17

Mike FinleyChief Toilet Mover

Trade: Bathroom RemodelingJoin Date: Apr 2004Location: Littleton, ColoradoPosts: 14,078


Quote:

Originally Posted by Charles Bagley

Seeing a fuel surcharge on invoices chaps me to no

end. I see it as a way to nickel and dime the

customer. I think the price should be figured in

materials or cost of overhead. Why do they stop at

fuel surcharges. Elect ricity has gone up in places, rent,

insurance, et c. Why don't we see surcharges for

those? I think all these cost should be figured in your

original quote.

I totally agree.

One of our tile suppliers has added a fuel surcharge to everyinvoice with a giant paragraph of explanation to go with it.

It's a ridiculously low number, something like $1.95 orsomething, every time I see it it chaps me even though it isminuscule. I too just shake my head and roll my eyes at it andwonder why anybody would risk disenchantment withcustomers for such a small financial reward.

Here's a $3000 tile order for you, oh, thanks for the $1.95 fuelsurcharge.

05-14-2007, 10:54 PM #18

Charles BagleyMember

Trade: LandscapingJoin Date: Feb 2007Posts: 52


I have raised my prices to cover the increase in fuel now andwhat I perceive it to be in the coming months. It is only aminiscule amount per job but adds up over a months time topay for my increased fuel and overhead cost. The customerdoesn't even notice. If I do 85,000 per month and up my priceper job by only

.75- 1%, that more than covers my increased cost of fuel. Thecustomer doesn't notice an extra piddly 1% and my competitorsare the ones adding the extra fuel surcharge on their tickets.

05-15-2007, 02:42 AM #19

BABuildersRegistered User

Trade: Siding - Windows -DoorsJoin Date: Apr 2007Location: St. Joseph MOPosts: 13


I always just add it in as part of the material costs. and havenever had a problem that way.

__________________A Touch Of Excellence in Every Home!St joseph Siding Windows Doors and Decks
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7/8



05-15-2007, 07:10

AM#20

tntspecialtyPro

Trade: General,roofing andinsulationcontractorJoin Date: Apr2007Posts: 421


I've added "fuel" as a specific line item in my estimate/take-offs.

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