Rising fuel prices.
It makes my brain hurt just to say those words. It was only a
matter of time before we were right back here again. The projected
average fuel price for this season is about $3.92 per gallon according
to the U.S. Energy Information Administration. That translates to an
increase in cost for everyone from the supply houses to the contractors
and ultimately... the customer.
There is no great way to offset increased fuel costs. Sometimes I
wish I could break through the glass of my dashboard and just hold the
fuel needle to stop it from dropping to "E". I haven't had to sit and
come up with a strategy of how to incorporate these costs into my
pricing and I hate the thought of doing so. It's hard enough to compete
without having to raise my rates to accommodate my thirsty trucks.
If we do sit around the $4.00 mark this season, I expect I will
have to add upwards of 10% to all of my estimates just to cover costs
and make the same money as last season. Most people hate to see fuel get
more expensive but when you're in our line of work, it hurts even more.
Take my Chevy 3500 Express Van for example. It averages 8 miles to the
gallon and it has a 35 gallon tank. That means I can get 280 miles out
of a full tank at a cost of $140.00 to fill the tank if prices hit the
$4.00 mark. 50 cents a mile..... ouch.
I average 400-600 miles a week depending on the service area. So, I
usually tend to fill my tank in that truck twice a week at a cost of
$280.00/week or $1,120.00/month. That feels more like a mortgage payment
than a gas budget... and that's only one truck. I even try all the
tricks like finding the cheapest stations and only using them, signing
up for Irving gas cards so I can save 10 cents a gallon every few stops
(subject to their silly limitations).
I hate to say it but something will have to change and seeing that
the gas station attendant doesn't seem to respond when I try to haggle
his prices down no matter how much I bat my eyes, it looks like my
prices will be going up as well.
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