Local Plumbers Add Fuel Surcharge

[TomEric4756]

We are thinking of adding a fuel surcharge to deliveries. I'm young enough and naive I guess so I didnt exactly know what that all entailed. After our accountant explained it to me I said "like a tax." The accountant reeled back "no no no. We dont use that word. It's a surcharge." Then he quickly explained it again. I said I got it but added that it's a tax. He just smiled and said "it's a surcharge."

Ultimately I dont know if we will do that. Once you do it you can never take it away. But I understand the need.

Fuel surcharges have been a logistics staple for decades. Just make sure they go down too, when fuel prices go down. Otherwise, it’s a stealth price increase to cover overhead.

 

[mrhighlife]

Fuel surcharges have been a logistics staple for decades. Just make sure they go down too, when fuel prices go down. Otherwise, it’s a stealth price increase to cover overhead.

Our industry typically just raises cost of goods to cover things like inflation and rising fuel. Surcharges have never been apart of the conversation until now.

 

[mrhighlife]

There is nothing that you do, as far as pricing, that you can't take back. Why would you think that you couldn't?

I shouldn't have said never. Its just tough in consumer goods. With so many competitors, retailers, and end consumers. Unless everyone lowers with us, which they wouldn't, we would just be giving away margin.

 

[UncleMark]

Fuel surcharges have been a logistics staple for decades. Just make sure they go down too, when fuel prices go down. Otherwise, it’s a stealth price increase to cover overhead.

You gotta be kidding. UPS is the king of fuel surcharges. It's how they increase their pricing between agreed contract updates.