General > General info Somewhat hot tub related
Fuel surcharge
Dr. Spa™ Ret.:
It's all deductable! But so what? It's still money out of my pocket.
Ok, say I sell a cover for $100. It costs me $95 dollars to manufacture the cover. $95 dollars is "tax deduteble" on the businesses taxes, $5 goes into my pocket that I pay personable income taxes on. Now, my cost goes up $6. I sell the cover for $100. I get to deduct $101 on the businesses taxes (because that's what it costs to make the cover), BUT I still have to come up with that extra dollar form somewhere to cover expenses. Where? I have to literally take it out of my own personal pocket and put it into the business to cover the loss. Now I'm not paying ANY personal income taxes, I'm giving any money I might have to support the business. This is going to make it hard to pay the rent and to eat........... much less supersize my lunch :)
I take the day traders out look...... I LOVE paying taxes, cause paying taxes means I'm making money ;D
HOWEVER, you do have a point in that a lot of companies see a fuel surcharge as a way of charging a LOT more than the fuel is actually costing them. This I don't agree with........... necessarily.
BTW, just as an fyi, the reason this is all hitting home with me, we have a "deal" with a shipping company to ship our covers at a flat rate anywhere in the US. It's helped us pick up a lot of business dropshipping covers for other companies. As of today (this was expected and didn't come as a suprise, they told us weeks ago), they raised the "flat rate". Most everyone expected US to simply absorb the cost (no way on this planet that was going to happen ;D , but there's been a bit of screaming).
Bonibelle:
Doc, as far as an increase in shipping costs, I know that is happening and will continue to happen...and I accept that. When I buy something, for example, from you, I can see my product cost and my shipping fee (and taxes, whatever). I would however be mad if ,when my purchase arrived, I had an additional fuel surcharge fee added that I didn't know about. And that is my point...you don't expect a service company whose business occurs in your home, to hit you with a fuel cost because that is what they are supposed to do...work in your home! :o
You're not going to change my mind on this one...Even if they said before they took the job, we are going to charge you for our gas to get to your house...At least I would have the option to agree or disagree to that. It's the principle, not the money. My regular plumber DOESN'T charge me for his fuel. He charges a bit more per hour, but I accept that....Unfortunately he wasn't able to handle the mess I had going on. this is how consumers develope opinions about businesses. If I were asked if I would recommend this plumber, yes, they did a good job and when you are without water, Term's friend Cooter looks good!! ::) But I would be sure to say they will hit you with a fuel charge, I know a plumber who doesn't.
OK, I am done with this.... ;)
Bonibelle:
Actually I wrote a nice letter and told the plumber how happy I was with the job that they did. I pointed out that there was no way that it cost them an additonial $20.00 in gas (beyond the cost before they added a surcharge) and that if anyone asked me I would say they did a great job, but they will charge you a fuel surcharge. If others are sensitive to that, as I was, they can go to the plumber that I usually use and pay a bit more per hour. That is what I will do.
Oh I also told him to get a good feel for how people deal with fuel charges as line items on a bill, check out the trash haulers in our neighborhood....the one who charged the fuel surcharge is gone ;)
TN__HOT_TUB:
I hate those fuel surcharges. Why tack on a charge just for fuel? Why stop there? Last I checked, ALMOST EVERYTHING COSTS MORE....that's the way things work.
If they are going to add a fuel surcharge, I too wish they'd be realistic about it. $20 for a 0.5 mile trip is ridiculous (i'd give them a call and try to work something out).
Gas at >$2 a gallon is here to stay (IMHO). Companies need to count on that and price things accordingly.
What do you think the chances are that companies will drop the fuel surcharges once gas prices go down and/or stabalize in price? What about a refund if/when they ever drop?
Reese:
--- Quote ---What do you think the chances are that companies will drop the fuel surcharges once gas prices go down and/or stabalize in price? What about a refund if/when they ever drop?
--- End quote ---
Better than if it is built into their product/service cost. I'd be willing to bet that most companies that added a surcharge thought long and hard about it, and probably ate several months of increased costs before they implemented it. I also think by doing it as a surcharge, they were sending a signal that they hoped that this was a temporary situation. By having it as a line item, they expose themselves to explaining why it is still appropriate as oil prices magically drop as we near election season. If increased fuel costs are built into in their base price instead, they will surely view the fuel savings as an offset for increased costs in other areas, and leave their price the same.
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