What To Do About Gas Prices!

During my last three workshops the topic of what to do about gas prices came up. I usually answer a question by asking the group how they handle it. It went like this . . . "Frank, gas prices are going crazy, what do you think about adding on a surcharge to each invoice of maybe ten or twenty dollars to cover the increase in fuel prices?" I then of course asked the class what they thought and received several different responses such as "We just increase our fee enough to cover the additional cost" or "We add $15 to each call for fuel along with a $10 shop supply fee."

I don't know about you but I get very annoyed when a company adds on extra fees. In fact two years ago I went to buy some tires for my car. After some negotiating we agreed on the price of $145 per tire. An hour and half later the representative tells me my car is ready. I look at the bill and it totals $720! I told the man that this is $35 per tire more than we agreed. He said the $35 was for valve stems and balancing. I told him I didn't request new valve stems and balancing. He explained that they always do this when they replace tires. So I said "If this is a part of the normal installation of tires, why do you charge extra?" I then directed him to put my old valve stems back on and unbalance my tires. Of course he said that it was not possible to do that. At that point I demanded to have my old tires put back on and was no longer interested in doing business with them. Of course he decided to go ahead and accept my original agreement and take the $145 per tire.

To me, when you add on something that is required for each job, just include it in the price, please don't annoy me and your customers with add-ons! Imagine going into a restaurant, ordering a steak for the price of $22 and getting a bill for $30 with an add-on of $8 for preparation and cooking, or an add-on of $2 for a fuel surcharge, or kitchen supplies.

If your costs go up, increase your total fees. Customers are annoyed enough about fuel costs, no need to remind them. Plus, who is reimbursing them for fuel costs when they go to work? That is an argument you may get when you add it on separately.

So in conclusion, get rid of the annoying add-on charges. Just put it in your total fee. In fact the less you break out your pricing the less ammunition you have for those folks who like to pick apart everything.