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Fuel/trip charge
John R. Hall
Member Posts: 2,245
A while back when gas prices spiked well over $2/gallon I asked contractors if they were adding a trip charge or including an extra charge on the invoice for increased fuel costs. I know we've hammered this topic before but I'd like to know if there are any new ideas on how to convince customers that fuel is a cost of doing business and that cost has definitely gone up.
As an aside, I saw a TV news story where a local pizza shop owner was asked if he was raising the price of pizzas because of the delivery costs. He said he would tow the line and keep prices the same. As a consumer with an appetite for pizza, I would EXPECT to pay more for a pizza because of the increased gas prices. But maybe I am the exception. Do you think your customers would be as understanding?
As an aside, I saw a TV news story where a local pizza shop owner was asked if he was raising the price of pizzas because of the delivery costs. He said he would tow the line and keep prices the same. As a consumer with an appetite for pizza, I would EXPECT to pay more for a pizza because of the increased gas prices. But maybe I am the exception. Do you think your customers would be as understanding?
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Comments
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My liability insurance has increased 60% in 4 years{no claims}should I add an "insurance surcharge". The only revenue streams I have are labor and parts markup and ALL overhead must be borne by them.I increase both as necessary to cover any addional overhead. Surcharges and "add-ons" seem to draw a lot of consumer complaints IMO. BTW if oil prices were to drop should you offer a "fuel savings rebate" ?
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we did it last time
we didn't get any complaints, people understood it was either that or raise the rates, when the fuel prices dropped we stopped charging it. Look at the bill you get from your mechanic. Enviromental charges, charges to dispose of tires, misc cleaning supplies etc, usually flat charge, sometimes a percentage of the bill. You have to cover those costs somehow.0
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