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Fuel Surcharges? - Business - Contractor Talk

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Fuel Surcharges?
Page 1 of 2 1 2 > Thread Tools 05-12-2007, 01:41 PM Search this Thread Display Modes #1 Fuel Surcharges?

Ed the Roofer
Pro

Each of the roofing supply houses in my area have been charging for a fuel surcharge for material deliveries for the past several years now. Does anyone pass this additional cost on to the end consumer via seperate line item charge or a clause in the contract? I get charged between $ 15.00 to $ 30.00 in addition to any actual delivery charges, if they charge for deliveries. Recent Product Reviews

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Trade: Roofing C ontractor Join Date: Dec 2006 Location: NW Suburbs of C hicago Posts: 7,131

I know, some will say, its part of the job, or included in the bid, but contractors also say that about permit fees as well. I get reimbursed for the permit fees, and small amounts at a time add up substantially for a year end total and this would as well. We have to drive and deliver our tools and other equipment to job sites at least one day, if not multiple days for lengthier jobs, so wouldn't it be reasonable to be expected to get reimbursed for the additional fuel fees in current times prices? Ed
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05-12-2007, 04:16 PM

Fuel Surcharges? - Business - Contractor Talk

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Re: Fuel Surcharges?

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

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Diesel65
Pro

I would just add that to the material cost before markup. And as far as permit fees go, they are added to my contract after markup, no one want's to see surcharges on a contract,or in addition 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.

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05-12-2007, 05:49 PM

#4 Re: Fuel Surcharges?

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dougchips
Insert title

I ordered a few dumpsters from rape management a few years ago and was hit with some heavy fuel charges. They quoted a price, said nothing about the sur-charges and said they would send it to collections if I didn't pay them. They were also nice enough to pick the dumpsters up late so they could fill with snow and ice and weight more. I don't really care to much about what I pay so long as I know the price before I sign on the dotted line. __________________ To get the best replacement windows, or sun rooms contact the replacement windows experts at FHI Vinyl Window Company.

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05-12-2007, 08:55 PM

#5 Re: Fuel Surcharges?

POOLMANinCT
Pro

I just treat it as cost of goods/supply... ed be happy yiur vendor hasn't cut back on shipping, mines cut their distribution truck runs to just wends & friday... I'd rather pay a suecharge than wait.....

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

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05-12-2007, 11:00 PM

#6 Re: Fuel Surcharges?

Patrick
Pro

Doug, I use rape managements transfer station to dump my trailer and they charge me by the half ton and then on top of that theres a environmental fee, ok no big deal but then right below 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!!!!!!!

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05-12-2007, 11:28 PM

#7 Re: Fuel Surcharges?

Ed the Roofer
Pro

Patrick, That is more of the potentially hazardous waters I was attempting to breach, without rocking the customers boat. Could we ethically be supplementing our out of pocket expenses for fuel increases by adding a minute clause requiring a modicum of a surcharge for the same rationale?

Trade: Roofing C ontractor Join Date: Dec 2006 Location: NW Suburbs of C hicago Posts: 7,131

At even $ 5.00 to $ 15.00 (use $ 5.00 as an example) per day x 5 days x 50 weeks = $ 1,250.00 or if $ 15.00 per day = $ 3,750.00 Neither amount is chump change, but would it be worth the potential customer scrutinization if handled in a direct business like manner? Ed

05-13-2007, 07:03 AM

#8 Re: Fuel Surcharges?

Patrick
Pro

Trade: Siding, Windows, Seamless Gutters, Metal Roofing Join Date: Apr 2006 Posts: 2,787

Ed I have always felt that by having charges listed on the invoice or contract make people feel like you are nickel and diming them. It just seems kinda tacky the higher the price tag on the job the tackier it seems. Fuel should be part of your overhead and delivery charges should just be part of materials cost. Along the same lines if you put your fuel surcharge as a line item should you then have a fuel charge listed for each sub. I think the only time that its appropriate is if the job is in a really secluded area and the customer understands that they live 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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Re: Fuel Surcharges?

ruskent
Pro

When i cut lawns back in the day, i'd always tack on a fuel surcharge on each months bill. Everyone paid it with out complaing. I bet you could do any type of job and on the final invoice tack on a sur charge and people would pay.

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05-13-2007, 01:57 PM

#10 Re: Fuel Surcharges?

Charles Bagley
Member

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

Trade: Landscaping Join Date: Feb 2007 Posts: 52

05-13-2007, 02:18 PM

#11 Re: Fuel Surcharges?

Ed the Roofer
Pro

Yeah, I do agree about how I feel evey time I get the fee assesed to me, and I am sure most HO's would find it objectionable. See, it worked for Ruskent, and he is not so hung over today from celebrating his 21st B'day to make sense still.

Trade: Roofing C ontractor Join Date: Dec 2006 Location: NW Suburbs of C hicago Posts: 7,131

Happy Birthday. I was just exploring a minor line item thought, that if contained within a clause that ther "may" be a fuel surcharge added on at the final invoice and it was listed, then it would not be scrutinized. Or, a line item for miscellaneous fees. Look at you bill from a Firestone or Goodyear machanics garage. They always include a "micellaneous" shop accesories charge. I, personally do not accept that charge, but how many percentages of people do not object and just accept it as a part of life? Ed

05-13-2007, 02:39 PM

#12 Re: Fuel Surcharges?

dougchips
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Trade: Doors-Windows-Decks Join Date: Apr 2006 Location: MA&RI

Shop fees, sort of like the $19.95 oil changes that add $3.00 for 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 move on with life. I'll have to ask them the next time to put my old oil in some cans and I will take it home just to see what they do. __________________ To get the best replacement windows, or sun rooms contact the replacement windows experts at FHI Vinyl Window Company.

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Posts: 4,684

Fuel Surcharges? - Business - Contractor Talk

05-13-2007, 03:48 PM

#13 Re: Fuel Surcharges? Quote:

RussellF
Pro

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

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. Electricity has gone up in places, rent, insurance, ect. 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 of using their household electricity.

05-13-2007, 03:52 PM

#14 Re: Fuel Surcharges?

Ed the Roofer
Pro

I had a customer one time about 10-12 years ago give me the bill from his electric company for using his elecricity to use our skill saws for wood decking replacement. He wanted me to pay the difference from the previous years monthly bill to the current one. After that job, I added a clause that the HO is responsible for supplying any and all utilities required to complete the job.

Trade: Roofing C ontractor Join Date: Dec 2006 Location: NW Suburbs of C hicago Posts: 7,131

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

05-13-2007, 05:52 PM

#15 Re: Fuel Surcharges?

Teetorbilt
Pro

FP&L (elec. co.) is constantly tacking on surcharges. Same with garbage pickup. Only a complete moron wouldn't know what's going on. __________________ You can't solve you're problems with the same level of thinking that created the problems. Albert Einstein

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05-13-2007, 11:15 PM

#16 Re: Fuel Surcharges?

Mud Master

C ommercial C ontractor

BGE(Baltimore Gas & Electric), a Constellation Energy Company, is our local utility supplier. The have been implimenting a 72% increase in electric for 2 years now..YOU SHOULD SEE MY BILL!!! I am installing a windmill in my back yard.... __________________

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Quote:

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C ontractor Join Date: Feb 2007 Location: Baltimore, MD Posts: 1,948

Fuel Surcharges? - Business - Contractor Talk

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05-13-2007, 11:20 PM

#17 Re: Fuel Surcharges? Quote:

Mike Finley
C hief Toilet Mover

Trade: Bathroom Remodeling Join Date: Apr 2004 Location: Littleton, C olorado Posts: 14,078

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. Electricity has gone up in places, rent, insurance, etc. 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 every invoice with a giant paragraph of explanation to go with it. It's a ridiculously low number, something like $1.95 or something, every time I see it it chaps me even though it is minuscule. I too just shake my head and roll my eyes at it and wonder why anybody would risk disenchantment with customers for such a small financial reward. Here's a $3000 tile order for you, oh, thanks for the $1.95 fuel surcharge.

05-14-2007, 10:54 PM

#18 Re: Fuel Surcharges?

Charles Bagley
Member

Trade: Landscaping Join Date: Feb 2007 Posts: 52

I have raised my prices to cover the increase in fuel now and what I perceive it to be in the coming months. It is only a miniscule amount per job but adds up over a months time to pay for my increased fuel and overhead cost. The customer doesn't even notice. If I do 85,000 per month and up my price per job by only .75- 1%, that more than covers my increased cost of fuel. The customer doesn't notice an extra piddly 1% and my competitors are the ones adding the extra fuel surcharge on their tickets.

05-15-2007, 02:42 AM

#19 Re: Fuel Surcharges?

BABuilders
Registered User

I always just add it in as part of the material costs. and have never had a problem that way. __________________ A Touch Of Excellence in Every Home! St joseph Siding Windows Doors and Decks

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05-15-2007, 07:10 AM

Fuel Surcharges? - Business - Contractor Talk

#20 Re: Fuel Surcharges?

tnt specialty
Pro

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

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