Discussion:
Higher Gas Prices

What everyones company doing these days to compensate for the higher gas prices? Sure you can add a fuel tax to the invoice but how high is to high before a customer says no more?
  • Posted 27 Apr 2011 11:32
  • Modified 29 Apr 2011 11:57 by poster
  • Discussion started by BenH
  • California, United States
Showing items 1 - 2 of 2 results.
I worked for a company, Allis Chalmers, that put a surcharge on all "back log" lift trucks orders (including direct bill National Accounts) in 1972 time period (6.5%) - deliveries were long then on new equipment order took 50 weeks to ship, steel, tire surcharges were commonplace.
At that time our Market Share was 10-11% and growing.
Before this was done, our management talk with management of our competitors - Clark, etc & they all said we will support you.
The effect of this was lost business, lost customers.
Key National Accounts like Goodyear (AC was the #1 supplier) they flew into our company & demanded the surcharge be rescinded or they would never buy another truck form us. AC didn't rescind & they never bought another truck - market share took a South East turn quickly & never recovered.
Certainly, times & thinking have changed but history is still a good teacher.
As an example, everyone was & some still are in "Shock & Awe" about all the troubles with the banks & home foreclosures. This same thing happened in Texas, Oklahoma & Louisiana in the mid 1980's - the "oil bust" time frame & adjustable rate mortgages & S & L failures.

Certainly, fuel costs affects your business profits - figure out what the impact is at todays price vs same period last year or las month. The first step might be look at ways that consumption can be reduced, secondly, send a communication to your customer base that delivery, service calls costs have been adjusted to offset the increase in fuel/oil etc costs. Hey, grocery store prices & anything made from crude oil - like clothing, dashboards, tires, etc. are going up to offset this. Reminds me of smooth talking Jimmy Carter days (1977-1981)- double digit inflation.
  • Posted 27 Apr 2011 22:27
  • Reply by johnr_j
  • Georgia, United States
"Have An Exceptional Day!"
how high is high?
from where I sit, I would love to hear a discussion of how we are selling the increase in price.
  • Posted 27 Apr 2011 21:02
  • Reply by edward_t
  • South Carolina, United States
"it's not rocket surgery"

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