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Eve Tahmincioglu

Primary author Eve Tahmincioglu has been covering small business and entrepreneurship for more than a decade. She regularly writes about small business issues for the New York Times and BusinessWeek's SmallBiz magazine. She also writes the Your Career column for MSNBC.com. She is the author of "From the Sandbox to the Corner Office."



Ouch! Stop passing it along already

Posted: Friday, September 28, 2007 5:54 AM by Eve Tahmincioglu
Filed Under: , , ,

Is it just me, or do any of you think fuel surcharges have become a way of life for some companies?

Recently, after the trash company we use increased its fuel surcharge for a fourth time I decided to shop around for a new service. (OK, it wasn’t just the rising cost, customer service was also severely lacking. They often didn’t show up for no reason, leaving my garbage to become a science project on the curb.)

Gas prices go up and down but the fuel surcharges … they just keep coming. They started showing up big time last year on many of my bills; but initially I figured they’d disappear once crude oil prices started to slip. I know, prices for gas are still high, but do these firms just pocket the money when the numbers drop at the pump.

As a self-employed individual, I’m being squeezed like a not-so-juicy lemon.

You see, I’m a freelance writer. I cannot charge my editors more money every month or so because crude oil prices are obscene. The companies I write for seem to be fair and understanding, but they don’t give a hoot if I’m paying double to fill up my gas tank.

While oil executives, economists and consumer groups are debating the ridiculous price of crude -- and the surcharges those prices supposedly cause -- I’m left, like so many business owners to eat the increases. A recent survey by the National Association for the Self-Employed, found that 74 percent of those polled said that high gas prices were indeed hurting their business.

So, why the heck do businesses, everyone for delivery companies to airlines, keep surcharging us out the wazoo?

There was a great article on surcharges on Slate.com last year titled “The Fuel Surcharge Scam.”

“Fuel surcharges more and more seem as if they're just an au courant way of raising prices, while duping customers into thinking they're not paying more,” the author surmises.

Is it all about just getting ever last drop of money they can?

Some firms have definitely tried to use it to their advantage.

Indeed, British Airways pleaded guilty last month to price fixing fuel charges. The Department of Justice said: “In 2004, British Airways' fuel surcharge for round-trip passenger tickets was around $10 per ticket. By the time the passenger conspiracy was cracked in 2006, the surcharge was nearly $110 per ticket–a 10-fold increase.”

Man, I’d be rolling in the dough if I could boost my rate 10-fold.

What’s your take on this? Do any of you charge surcharges? If so, why?

And for those of you on the other end, how have these surcharge impacted your bottom line?

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Comments

I live in a town maybe 18000.  the fuel chargew here is 21.14 a month.  the solid waste pickup charge is 16.75.  both added together come to 683,020 a month..now who,s getting screwed..
Get used to it. The world is rapidly running out of cheap (ie: easy to extract) petroleum; TPTB are squeezing consumers for every penny they can get.
As for airlines, if you want to fly somewhere, do it soon-there is no energy resource currently known that can replace aviation fuel.
Worried about trash pickup? Better start looking for metal drum suppliers-if you want to dispose of your trash in about 3-5 years, you will have to burn it.
Need light to read and write by? Petroleum supplies about one-third of the power for our electric power grid (not counting the fossil fuels required to make all those cables, and for lubricating moving parts).
Think those electronic 'toys' are fun? Enjoy them now-there soon will be no fossil fuels available to make all those plastic bodies and parts.
research: peak oil.
And, good luck to you......
Electric vehicles are making a comeback, if you really want to make a difference buy one when it is made available. If there is any way we can put the hurt on the oil barons do it! use less fuel = price drops and less excuses for high surcharges. Look up electric vehicles online. Ford even makes fleet electric trucks! great for local commuters and local deliveries.
I think you people should all take a course in business before you write these dumb rediculous comments.  I am the owner of a private trash company in NJ, and the fuel costs have literally strangled our company.  When you are paying close to $5.00 per gallon and you are filling up diesel trucks who hold 80 gallon tanks, 6 days per week, and you run 20 trucks, the costs are absolutely unthinkable, AND there is no way to re-coup those costs.  If you do not pass on the fuel surcharges, how do you expect these companies to sat in business?  Do you want your trash to build up on the curb for weeks???  When your fuel costs go from $20,000 per month to $65,000 per month in a matter of 7 months it is literally catastrophic to your business.  You people should live through a situation before you start screaming about things of which you have no knowledge.


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