Rising Fuel Costs!

The subject of rising fuel costs has been quite a topic of conversation among Harvest Members as well as being listed as the number one issue PLANET members are faced with. As a result we felt it a good idea to share with you what some members are doing and give you some ideas to think about and possible actions to take.

Initially the Head Harvesters thought it might be a bit of “nickel and diming” your customers if you try and impose a fuel surcharge but it looks like we are in this for the long haul. The price of both gas and diesel looks like it may stay at present levels with even a possibility of higher amounts before the end of the year. Remember in Britain gasoline is $6.00 per gallon with diesel at $11.50 and Europe it’s around $7.00 per gallon for gasoline and $8.50 for diesel.

Here Are Some Suggestions:

Existing Maintenance Contracts with No Fuel Increase Clauses:
Some are charging 2% on the total amount for the month. I heard one guy, not a Harvest Member, trying to charge 5% but we think that is a bit absurd. Another Member is charging 1.5% on just the mowing and other operations that use a lot of fuel. These are reasonable and fair. With the Members that are doing this the reports are very little customer resistance.

Helpful Hint:
If you decide to impose an increase we suggest that you, don’t guess your costs, but determine approximately how many gallons you will be using this year and how much more you will be paying this year over last. Figure the increase in dollars and as a percentage. With this knowledge calculate how much of a surcharge you need to add to recoup the increased costs. Now, if you decide to impose the charge and challenged by a customer you can rationally discuss the reasons for your request.

Important:
We suggest that if you do impose a surcharge you send a letter prior to or at least one that accompanies the invoice to explain the reasons. This will help to “soften the blow”.

Lastly:
The Harvesters suggest you immediately create a “Fuel Cost Adjustment” clause that will be inserted in your contract for any future maintenance or long term landscape construction contracts. With such a fuel adjustment clause there will not be any debate about the surcharge, it will just be done automatically.

Hope this has been helpful. If you want to discuss this matter further don’t hesitate to contact us.

Harvester Road Trip to Phoenix Yields Gold (and Red)

Recently Ed and I attended PLANET’s Executive Forum in Scottsdale Arizona. We came away with a “Bountiful Harvest” of ideas, relaxation and, most importantly, new relationships and renewed long-term friendships.

We listened to Dave Zerfoss, President of Husqvarna, whose key note focused on where we should be spending our time and making sure we’re keeping a balance in both our personal and professional lives. Well done, Dave. The main speaker, Paul Sessions, stressed the importance of organizations’ leaders putting a succession plan in place, well in advance of when they plan to leave their operation.

We played golf and spent some great quality time with old and new acquaintances: George from Davey, Rick from Husqvarna, Jack the entrepreneur. Rick actually told more bad jokes than I did, but played a much better golf game.

We met new folks from some great organizations that provide goods and services to our industry, like George and Tim from LandOpt, Kelly from EverGreen, Blake from Xmas Décor, and Ken from John Deere, to name but a few.

Yes, Ed and I did host a few wine tastings with existing clients, new folks and anyone else who shares our passion for the “Red”.

Once again, we learned that the greatest takeaway of all is meeting and re-meeting some of the greatest people in the industry and getting the chance to network and exchange ideas, frustrations and dreams that we all share. This event was truly golden, and the Red was pretty good, too.

See you next year in Orlando!

Don’t Just Satisfy Your Customers, Delight Them!

There are key ways you can tell if you are meeting (and exceeding) your customer’s needs. To find out how you’re doing, ask. Are you(r):

1. Retaining your existing base of contracts?
2. Enhancements being approved?
3. Contracts being renewed, with reasonable increases?
4. Referrals given freely?
5. Projects worthy of being used for references or testimonials?
6. Avoiding client proclaimed “fire drills” that cost a fortune to fix?

You can achieve all of the above if your service is consistently delivered, plus one. I have spent the last 30 years spending 20 to 25 percent of my time doing what most folks might call quality assurance or more what I call: making sure that the organization delivers quality, plus one all the time, every time.

Welcome!

Greetings Folks! Thanks for visiting our blog. We will be posting here shortly so check back soon! Leave a comment and just say Hello!
Ed & Bill