Who Pays?

June 27, 2011

Of all the difficult decisions landscape professionals make every day, one of the toughest is tied to the cost of fuel. As energy prices rise, should you raise prices to compensate? Institute a surcharge? Or just absorb cost increases?
Depending on the situation, one, or a combination of options may be best action.
Some landscapers are choosing to simply raise rates to cover fuel increases. Prices of many consumer goods and services are on the rise, and customers are accepting (sometimes begrudgingly) the increases.
Others are adding a “fuel surcharge” to their fees to help customers understand why rates have gone up. Since customers are also struggling with increasing energy costs, most are empathetic with landscapers’ situations.
Still other landscapers are cutting costs where they can to maintain rates – and customers. They’re tightening their belts and finding ways to operate more efficiently and gaining customers from competitors who have raised rates.
What are you doing to balance higher energy costs? One of the above options, or something entirely different? Let us know.