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Silver Lining In Gas Prices
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Silver Lining In Gas PricesBy Steve Calitri
The fact that gas prices are up have given many tow men a reason to pause over the issue of overhead and expenses.
For some this has simply caused you to back off on growth plans or equipment renewal.
But this should not be your reason to stop and reflect. As the pilot, you should use the wind of the storm to gather speed, not slow down.
Rather, you should be thinking about your rate sheet. You should realize that now is the opportunity to raise your rates across the board; retail, commercial, and motor club rates. As gas prices have increased by 20% to 30% and greater, raising the hookup fee by 10% to 15% is not unreasonable. Indeed, commercial accounts would expect you to raise your rates.
Yes, now is the time to take a hard look at your numbers and make adjustments. It is not the time to become passive as a businessman. Your plans to update your equipment, train your drivers, or buy new trucks, should not be curtailed by higher gas prices. Indeed, now is the time to move aggressively.
Your reaction to changing costs should be a revised rate card.
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