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  1. #1

    Join Date
    Dec 2005
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    Fuel Surcharges now @ 20%

    Hello APUG

    This is a FYI annoucement and hope to have some feed back as to what to do. Our last UPS and FEDX bills have 20% fuel surcharges for all air shipments and 6.25% fuel surcharges for all ground shipments. These are applied to the entire bill not just the shipping charge but also applied to the residential surcharge of $1.95, and the rural surcharge of $.80. We have been absorbing these surcharges for years but now we are actually paying to ship product. These companies are sucking so much cash out of the economy it is unreal. Probably good stock to own because of the surcharges they don't care where fuel costs go, it is just added on and little companies like us just have to eat it. Our only option is to again raise our shipping charges, or add a surcharge as they do. We also pay a 20 to 25% fuel surcharge to all trucking companies on our incoming freight. That is 25% of the freight bill not just an additional fuel charge.
    I don't mean to whine or complain just letting everyone know that we have a problem here and to expect an immediate increase in costs somehow. I would like feed back if there is any.
    This is a national problem with these fuel costs. Every company in the nation is feeling the same pinch I am trying to explain here. Everything you buy and I do mean everything has to increase in price because of this.
    I try to never get into a political discussion but somewhere somehow, someone has got to start doing something about this. ANY IDEAS

    Thanks for letting me vent
    Bud Wilson

  2. #2
    TheFlyingCamera's Avatar
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    As a solution for yourself, I'd tack it on the same way the shipping companies do, as a surcharge, so if/when the cost comes down, you can rescind it and pass the savings back to your customers.

  3. #3

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    Surcharges are a part of your cost of sales, just as fuel is part of the shippers' cost of sales. It's gotta come from somewhere; pass it along and we'll just order more at a time to spread out the cost. Gotta pass along corporate income tax, etc., why not an escalating cost of doing business? Y'all ain't a charity.

  4. #4
    resummerfield's Avatar
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    Bud, you don't have any choice. To stay in business, you have to adjust your customer shipping costs to reflect what you spend.

    I don't understand why the shipping companies call this a surcharge, as if fuel prices will eventually come down. High oil costs are here to stay.
    —Eric

  5. #5
    JBrunner's Avatar
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    Hi Bud,

    These shipping companies like to call it a "surcharge" because if they didn't they'd have to admit they raised their rates, which is exactly what they did, no matter the reason or what they choose to call it. Typical modern doublespeak crap.

    When I order from the Formulary the shipping costs are part of the deal, and I expect to pay that, so whatever the shipping bill will be, including "surcharges" that's what I expect to pay.

    I wouldn't expect you to eat it, and you shouldn't.

  6. #6

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    Economy depends on gas, everybody is getting squeezed.

  7. #7

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    Bud,

    Just move the formulary to the east coast. Shipping stuff to never never land Montana, then out to the east or west coast has got to be a killer. Move your operation closer to your customer base.

    I'm just kidding Bud. If I were fortunate enough to live where you live, I wouldn't think of moving either.

    I think your customers will understand a couple extra $$ for shipping.
    John Bowen

  8. #8
    BradS's Avatar
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    Hmmm, that reminds me. I'm running low on Sodium Sulfite. Guess I better stock up...soon!

  9. #9
    Curt's Avatar
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    Just yesterday UPS announced a profit increase for the quarter, they aren't hurting, just squeezing those who have to pay.
    Last edited by jd callow; 04-24-2008 at 11:00 AM. Click to view previous post history. Reason: off Topic
    Everytime I find a film or paper that I like, they discontinue it. - Paul Strand - Aperture monograph on Strand

  10. #10

    Join Date
    Apr 2005
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    Bud, check out a service like ishipper.com. I never have to worry about changing my rates, because ishipper feeds my website with all the shipping rates, and they always have the latest updates. My website sends them a query which has the zip code and total weight, and they send back the rates for the services I want to offer my customers. You can even have it add on 5-10% extra or say an even $1.50 per package to cover any additional handling fees you might have on your side. It's surprisingly accurate for UPS ground and USPS Priority, and usually pretty good for 2nd day, 3rd day and overnight rates. Check it out, it saves me a ton of headaches.

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