Fuel cost affecting pricing

[Tortuga James]

Of all the dive markets with maybe the exception of the gulf, fuel prices hurt us the most in NC because it is a 60-80 mile round trip to just about all offshore diving.

With my pricing + fuel model I am going to have to charge $180 per diver (6 pack) with fuel at $5. That includes a 10% rise in my base price to cover increased cost in non fuel expenses. I just can't afford to get up and leave the dock for less. I wonder if there are enough hardcore divers to support that price.

I am at a loss to figure out what that is going to do to my business, but it makes me really nervous about laying out big preseason investments in equipment and improvements.

Thoughts?

 

[Capt Scotty]

Fuel prices have all ready start to affect everything from our food cost per trip to the parts delivered. I didn't raise my base price per customer this year, but all commercial work I have bid plus fuel.

 

[tekdvr2]

Have you looked at "Farm/Off Road Diesel"? That's the red stuff without the road tax. If you have enough people you can go in and share a truck load. Not sure where you keep your boat, but it probably won't work at a public/private marina. Seems kinda dumb that the marina's jack up the prices past the land pumps, then keep ALL the taxes in place. If you can swing it and have a place to put a 500 gallon tank, go with the #2 heating fuel. Just make sure you put a good filter on the output side of the tank. Another thought is bio-diesel. Again No road tax!

tb

 

[Tortuga James]

Yea, we all get red diesel at the marina with no road tax and file for commercial status with no sales tax. My price is usually about 30 cents less than the quickie mart price for auto diesel across the street.

I have thought about maybe going to some percentage of biodiesel just for the marketing value of being "green", but I don't see that as a cost cutting measure. It may make some of my liberal customers feel better.

 

[Akyla]

I wish my fuel price was .30 less than the road price.
Up here on Hatteras Island the local marina cartell is spanking us for the full road price, even though it is red fuel with no road tax.
On top of that if you are not commercial, NC wants another 6.5% sales tax. Painful is not the word for it but there is no good alternative to the marina.

I will be adding a fuel surcharge if the per gallon cost goes up beyond the current rate and have it all costed out on a spreadsheet. The total cost of a the trip will be right at James' pricing or more...

If you really want to get angry about this whole fuel price situation, read this article about the root cause
Maine Voices: For gas prices, the law of supply and demand gives way to speculation | The Portland Press Herald / Maine Sunday Telegram.
Have not heard much about this during any of the "debates" that have been going on and doubt we will.

 

[Capt Gary]

In the past we've charged a fuel surcharge of $5 to $10 depending on where we were going. This is outside our regular price and we don't charge tax on it. Down here in the Keys I'm paying tax on fuel so I'm not going to charge my customers tax again with the fuel surcharge. In any case this seems to have worked OK and the divers understood this extra charge.

Just some fuel for thought....sorry for the pun.

Good Diving,

 

[Wookie]

I think I'll just puke.

 

[Tortuga James]

I don't know Frank, I am looking at the status under your screen name and I think I see the cause of the nausea. When are you going to install those solar panels on Spree?