Gas Surcharge -Your Opinion
Steve Jonesi
Posted 5/3/2007 1:55 PM (#254353)
Subject: Gas Surcharge -Your Opinion




Posts: 2089


I'm curious as to what you guys think of a guide charging a "gas surcharge". I guide on big water and did not raise my rates this season. With gas going to be pushing $4 a gallon this season, I've been seriously contemplating a surcharge.Could not have forseen such a dramatic jump in gas prices, thus not changing rates earlier.Or....... do I just contact everyone and let them know of the impending $25 charge? Expenses are out of control. Fill the tank? 51 gallons X $3+ a gallon.MINIMUM of $ 150. Hmmm. I'm interested to hear the responses.

Steve
esoxaddict
Posted 5/3/2007 2:13 PM (#254360 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 8781


Steve,

I honestly think you'd be better off raising your prices. Obviously you couldn't predict ahead of time that gas was going to be as high as they are predicting. Nobody would argue with you if you changed your rates because of that, but I think some might argue with a surcharge, since gas is technically "part of the deal". Sort of like going to a restaurant and having a $5 charge on the bill for cleaning up your table or pouring your coffee.

Either way I would consider keeping the rate the same for the guys who have already booked. Same deal -- everybody will understand that gas costs are eating into your profit, but you KNOW people will get upset if they booked you at $350 and later on you went and raised the prices.

If it were me I'd go to $375 for all future bookings, and keep the people who have already booked and sent deposits at $350. Maybe mention on the water that you're thinking of getting a smaller boat because gas costs are killing you. That just might get a few people to give you a bigger tip at least.

You're going to have to come up with something to say to the guys who say "Look at him, he puts a 53" in the boat and now he thinks he's worth $375!", though



I've heard a lot of guys criticize guide rates, because they think you're MAKING $350/day. Sounds like a lot until you factor in payments on your truck, payments on your boat, buying rods, reels, tackle, insurance, gas for the truck, gas for the boat, and the fact that you're only working 150 - 200 days a year.

Edited by esoxaddict 5/3/2007 2:20 PM
Guest
Posted 5/3/2007 3:03 PM (#254368 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


A lot of guides just have the customer re-fill the tank at the end of the day at whatever resort they launched from. Seems like a fair deal to me.
Magruter
Posted 5/3/2007 3:09 PM (#254370 - in reply to #254368)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 1316


Location: Madison, WI
I wouldn't mind paying a gas charge, but if the guide is out there all day fishing along side. I don't think it should be a full refill charge. They are using the fuel as well enjoying the time out.
BALDY
Posted 5/3/2007 3:10 PM (#254371 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 2378


I dont blame you man, but that's going to be a tough one to sell to some people.

"By the way even though the price was $XXX when you booked, you OWE me another $25 because gas is so #*^@ expensive"

I see that being responded to very negatively to by some...possibly bad for business in the long run.

I suggest following EA's advice and upping the price for a day right now for anyone that isnt already booked. Not sure what you can do about the ones that have already booked other than hope that they realize the situation and pony up a little more at the end of the day.

Or you could just drive slower and use less gas...hehe

Edited by BALDY 5/3/2007 3:13 PM
Obfuscate Musky
Posted 5/3/2007 3:11 PM (#254372 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


I don't like Gas Surcharges at all. The lodge I went to last year tried to do it but I was like no way. They agreed. If you made a commitment I think you have to stick to it. I would say its fine on unbooked days where you let them know up front but anyone who booked before should be set.
bchunter26
Posted 5/3/2007 3:29 PM (#254375 - in reply to #254372)
Subject: RE: Gas Surcharge -Your Opinion




Posts: 91


Location: Wausau
I don't think a surcharge is all that bad. It should be a percentage of what the gas costs that day. If prices come back in line the surcharge goes away. If you raise your cost across the board and book someone for late July at the higher cost due to the price of gas today and the prices come down they might come in July and say hay the price of gas is down I want a refund for that increase. I would hope anyone who books you for a day and spends anywhere from $12 - $25 for a single bait isn't worried about a few extra bucks for gas. It would'nt stop me from spending a day in the boat with an accomplished guide.
Muskie Treats
Posted 5/3/2007 3:39 PM (#254377 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 2384


Location: On the X that marks the mucky spot
Gas surcharges are VERY common in business. It's the safest way to get back to the original cost when fuel goes back to "normal" levels.

Magruters comment: "I wouldn't mind paying a gas charge, but if the guide is out there all day fishing along side. I don't think it should be a full refill charge. They are using the fuel as well enjoying the time out."

Sir, it's obvious that you've never guided a day in your life. Ask any guide and they're pretty much ALWAYS rather be fishing alone or with their friends. My wife used to use that argument on me when I would occasionally guide and count it the same as if I were out with my friends (even though I gave the family the money). She thought it was a "day on the lake" for me and nothing but fun and games. If the guide is doing it right (whether they're fishing or not) it's work.
esoxaddict
Posted 5/3/2007 3:43 PM (#254378 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 8781


Here's what you do:

1. go on a diet
2. start a vigorous cardio program
3. stop shaving
4. At least once during the day, make a hard turn, back off the throttle, and yell "%^$& LOONS!!!"
Then turn to your clients and say "I just don't understand why they don't get out of the way anymore, almost like they WANT me to hit them!" (make sure there's not a loon in sight when you do this)
5. When your clients decide to eat lunch watch them eat. When they notice you've been staring at them, say: "man, if you don't mind, could I have a bite of that sandwich? I spent all my money putting gas in the boat... again. I normally wouldn't ask, but it's been like 3 or 4 days since I had anything to eat and it's starting to affect my ability to drive the boat. And I keep having weird dreams about running over loons in the boat...

Donnie3737
Posted 5/3/2007 4:01 PM (#254380 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


Steve,

I would look at your cost of fuel daily...or as close as you can come from last year! Figure out what your pricing is going to be for X # of gallons. Use that as your baseline...say $2.75/gallon. Then, if the gas DOES go up to $3.75, and you ran 16 gallosn through your boat, you can feel good about charging a $16.00 fuel surcharge. It is no one's fault...it just happened! I wish we'd just take over the Irqui oil fields and we'd be fine! Let the customer know BEFORE they come to book you as a guide! If you were to guide 200 days this year, and the fuel was an extra $20.00 per day, that is $4,000....that's a lot. A client on the other hand, will only be handing over a $20.00 bill.

Now as far as resorts charging a fuel surcharge, I think they have the right. You only surcharge the difference! But if you take a place like Andy Myer's Lodge, who puts 1,100 people through each year. And they all use 40 litres of fuel a day, times 6 days, this is 264,000 litres of fuel! If the price of fuel went from .80 cents per litre, to $1.25 per litre, Herbie's fuel bill would go from $211,200 per year, to $330,000...over $100,000 MORE per year! If each person who came to the resort was surcharged a percentage of the increase, it would keep AML from raising their prices. If the fuel came down in the fall, like it does, there wouldn't be as big a charge there either.

Does any of this makes sense? Or did I just ramble?

Donnie
hotlanta
Posted 5/3/2007 4:20 PM (#254381 - in reply to #254378)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 94


Steve
You have every right to charge a fuel surcharge. Most every industry in this country and around the world, that uses fuel, is charging a surcharge. You just need to decide at what price level you need to start charging and call all your clients and notify them. Keep it simple, charge your clients for the cost difference when the price reaches $3.00 and above or what ever you think is right. For example if gas cost you $3.50 the day of the trip and you used 20 gallons charge them an extra $10.00 as a surcharge. If you let your clients know about it in advance they shouldn't have a problem. I don't think anyone would want you to lose money, I wouldn't if I was one of your clients. If they do have a problem with it they can always request a refund on any money they put down and you can fill their spot with a client that understands.
Chris
cpr fish
Posted 5/3/2007 4:35 PM (#254384 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion




Posts: 239


Location: Madison, WI
I've fished with guides that have a flat rate plus gas. Makes sense based on the fluctuating cost of fuel. That guarantee’s you will be paid accordingly for your time and effort and eliminate surcharges and/or raising your rates. You’ll be able to quote customers approximate fuel costs based on how far you travel and price per gallon at the time.

Most guides are $xxx per day. No problem there but if I book at a agreed upon rate and the fuel surcharge is later added I would not be thrilled. I would recommend a deposit refund option if you do up the ante for those that are in the books.

I'd most likely pay the surcharge. $25-$50 split in 1/2 between 2 clients, it's not that much....

Edited by cpr fish 5/3/2007 4:42 PM
MuskyHopeful
Posted 5/3/2007 4:40 PM (#254385 - in reply to #254381)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 2865


Location: Brookfield, WI
Makes sense to me, Steve. It will be what the market will bear. I doubt you're the only well known guide in the business running a few numbers before the season starts and cringing a little bit, so consequently I doubt you will have many complaints. I know if I had a trip booked I'd be thinking about how the rise in gas prices is going to affect the people I hired. Plus, it's not like you're fishing a 200 acre Lake X.

I would do it. You might lose a couple dates, but not many I bet. Be up front and honest. I think if in any way you do it where clients think you're being kind of weaslely about it, then you might run into trouble.

We've met and you don't seem weaslely to me. You're just not shaped right.

I do have one other idea. Call it a Ma'amcharge. Maybe clients will think you're bringing some chicks.

Kevin

The area has been cleared. We're good to go.

bigjoe
Posted 5/3/2007 4:45 PM (#254386 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


I like the idea of guides charging a flat rate + gas fee based on current prices. With gas going up and down so much why not say it is for example $350 per day, and then a charge for gas based on what was used and current gas prices.
Seems like the best way to do it. my 2 cents
Steve Jonesi
Posted 5/3/2007 4:49 PM (#254387 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 2089


Guys,
I really appreciate all the responses. Keep 'em coming! Steve
WI_guy_turnedMudDuck
Posted 5/3/2007 5:07 PM (#254391 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 227


Location: Maple Grove
If the rise in gas is causing your operating expenses to get out of control you will need to raise your prices. I too would shy away from a gas "surcharge". Just bake it in...everyone else is (Airlines, Shipping Companies, etc...) Marketing 101...
Value=Benefits/Price. Keep putting fish in the boat and your customers will still be there.
john skarie
Posted 5/3/2007 6:44 PM (#254400 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion



So what do you do if gas goes below the surcharge figure, say you tack on money if it's above $3 a gallon, do you give a refund it is goes below, or pocket the profit?

I would be leary of a system of pro-rating gas expenses with a surcharge.

Your clients are already going to be paying more money in gas just to go on vacation, an extra fee may just cause more to scrap the guide trip, or it may come out of your tip. It also may deter them from booking in the future.

You have to consider how many more clients you may gain by being cheaper than others who are looking to charge extra for gas as well.

When you are in a business that involves using fuel as a major operating exepense, you have to be prepared, some years it'll be up, some down.

Believe me, I know, we use about 30,000 gallons of propane a year in our business.

JS
Pepper
Posted 5/3/2007 7:15 PM (#254403 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 1516


Interesting question how much gas do you use per day? Donnie's idea makes cents.
Southshore
Posted 5/3/2007 7:18 PM (#254404 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion




Posts: 218


It seems that you have already entered into a contract when you booked the date even if you did not get a deposit. Would you lower your rates if gas went down to $2.25 in mid July? If you even have to think about your answer, I don't see how you can think about a rate increase. Keep gas prices in mind when you set new rates or book new dates but honor your commitments as a professional should.

Ray
MuskyFeverMN
Posted 5/3/2007 8:09 PM (#254412 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 51


Location: Aitkin, Blaine, Minnesota
I would be annoyed if someone changed the deal on me. I would however personally factor gas into better tip especially if the guide was really working the water. We all know gas is up. I would guess there will be a fair share of your patrons that will tip you better or may even offer an extra "gas" bonus. One other thing, there is nothing worse than hiring a professional (in anything) that bitches about the costs involved in practicing their craft/ servicing me. As with any bidness decision some will agree and will not, good luck tough call.

Remember, your clients are also getting screwed as they are driving up, down, or sideways to get there paying for gas all the way.

Another topic is how will it affect the boat whores out there who never offer to pick up the gas??? You know who you are!!!!!

Edited by MuskyFeverMN 5/3/2007 8:13 PM
Derrys
Posted 5/3/2007 8:31 PM (#254422 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion


The Schwan's company was adding a dollar to each order as a gas surcharge recently. Maybe they still are, I'm not sure. The rep said nobody made a stink about it.
lambeau
Posted 5/3/2007 8:39 PM (#254428 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion


i understand the thought, i really do.

that being said, i've got a 90-mile round trip daily commute. i "have" to drive this distance every day to do my job.
my truck averages 15 miles/gal, so it's 6 gallons per day to get to work and back.
at $2.50/gallon, that costs me $15/day ($150/2wks)
at $3.50/gallon, that costs me $21/day ($210/2wks)
no matter how much gas costs me to drive, i get the same amount in my paycheck every 2 weeks.
as much as i'd like to do so, i can't tack on a gas surcharge to cover the variable costs of getting to work.
i signed a contract with my employer to do a certain job for a certain rate of pay.
when gas prices go up, my income goes down, plain and simple.

if you do charge a gas surcharge, my guess is that you will most likely see a smaller tip from many of your clients. most people are budgeting a certain amount for the guide trip to cover your rate plus the tip. just because your rate changes does not mean that everyone is going to change the total amount they budgeted at the time they booked the trip.

another thing to consider: what are the majority of the other quality guides in your area doing? you don't want the word to spread that you're charging more than them and drive potential clients to someone else. some money for a day is better than no money, right?


btw, my solution was acutally to join a van-pool.
i pay around $70 every 2 weeks to ride to work.
this saves me about $250 every month at current gas prices!
Steve Jonesi
Posted 5/3/2007 9:25 PM (#254440 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 2089


Very interesting comments all around. I've heard over the years about resort and lodge guides charging a "gas surcharge" or gas was the responsibility of the client. I WILL NOT charge extra for gas this season or next. Bring on $4 a gallon! I've heard the 225E-TEC H.O. is fairly fuel efficient. Lets hope. Thanks for the responses and helping me make an easy decision even easier.Some guys I've talked to have suggested just "fishing closer" and not running as much. Sorry, no can do. I am committed 110% to do whatever it takes to provide the best opportunity to score. If that means Vineland to 3 mile to Wealthwood, then by all means. VIVA LA POND. Steve

Edited by Steve Jonesi 5/4/2007 7:22 AM
pgaschulz
Posted 5/3/2007 9:49 PM (#254447 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion





Posts: 561


Location: Monee, Illinois
Steve I would say no to start, but let your clients know that you are not charging this surcharge even though gas prices are getting out of control. If they are any kind of decent clients they will make that up in the tip at the end of the day.....Just my 2 cents....
mikie
Posted 5/4/2007 6:42 AM (#254498 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Location: Athens, Ohio
I'm usually a very poor tipper. If a guide told me he was thinking about surcharging, and decided not to, I might be tempted to increase the tip a bit. Of course, if it was one of those days where we made a 5 minute run, dropped the troller, and spent the day on one spot, I'd have to think hard about it. If We had to run all over the lake to get me on fish, now that's much different. m
Guest
Posted 5/4/2007 7:15 AM (#254507 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


Mikie you make a good point but just knowing what it's like where Steve guides, he burns a lot of gas in a days time. Steve, I hope you get good tips to make up the costs and not charging extra says a lot about how considerate you are of your customers.
Donnie3737
Posted 5/4/2007 7:25 AM (#254508 - in reply to #254498)
Subject: Re: Gas Surcharge -Your Opinion


I'm looking at it on the whole. Lambeau, very good point...I understand we need to pay for gas to get back and forth to work...agreed! The difference is this...Jonesi won't be charging the people extra gas in his truck, just the boat! Why? Becuz it is the tool that gets his clients from point A to point B.

Trucking companies charge fuel surcharges now...without them, we'd have every small trucking company go belly up like the late 90's. The shippers know up front, so they understand there will be the charge! You can settle for second best, hire a guide (or trucking company) who doesn't charge a surcharge...and you'll get what you pay for!

Does this make sense?

Just my 2.27 cents Canadian worth!

Donnie
bigjoe
Posted 5/4/2007 7:27 AM (#254509 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


what are the other guides on Mille Lacs doing? Lee, Greg, Hamernick etc?
lambeau
Posted 5/4/2007 7:29 AM (#254511 - in reply to #254508)
Subject: Re: Gas Surcharge -Your Opinion


The shippers know up front, so they understand there will be the charge!

this is the key point.
guide clients who booked their trip at a show over the winter would not be expecting a gas surcharge. some would be fine with it, some might get upset about it.
in reality, you're probably talking $20? i personally wouldn't be upset about it, but i've seen many people get bent in a knot over much less than that - especially if they weren't expecting it up front.
Donnie3737
Posted 5/4/2007 7:55 AM (#254519 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


Lambeau,

The fuel surcharges companies are getting charged fluctuate daily. The base rate for the haul is $x,xxx.00. Then, the surcharge, will fluctuate between 3-25%...almost daily!

I think if any guide were to just tell his clients, via e-mail, phone call, etc., that if prices jump up very high, there might be a fuel surcharge. But, I wouldn't wnt Jonesi buying a lesser boat, or smaller truck, or fish fewer spots because it's costing him TOO MUCH to stay in business! Like I said yesterday, I'd rather drink a few less Scotch and waters, then to see a guide go out of business because he's spending an extra $35 per day in fuel, when I'm fishing with Steve, Lee, Greg, or anyone else for that matter.

Your thoughts??

Donnie
nwild
Posted 5/4/2007 7:59 AM (#254520 - in reply to #254511)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 1996


Location: Pelican Lake/Three Lakes Chain
I am sure Steve noticed this, as would most any guide that looked at this thread. There was a very noticeable number of people that stated that they would be very displeased if the guide they booked did this to them. Automatic answer...a guide can not do it then.

A huge portion of guide business comes from word of mouth and unfortunately good words don't spread nearly as fast as bad words. All it takes is a few disappointed clients voicing their disapproval of policies or service to wreck several prospective clients idea of your business. It may work in the shipping industry, but it aint gonna cut it in the guide business.

I raised my rates going into this year, number one reason was gas prices. It may cost me a few trips through the course of the year, but these people knew up front what the rate would be. I would rather have them not book me because of price than speak poorly of me because of a suprise charge that came up after the booking.
mikie
Posted 5/4/2007 8:17 AM (#254525 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Location: Athens, Ohio
Norm, it stretches my imagination to think that anyone could speak badly of you and your guiding service! m
mavmskyb8
Posted 5/4/2007 8:28 AM (#254528 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 260


Location: Kentucky
I don't guide, but I play one on TV. I checked with my local Honda dealer to see at what RMP's my 225 runs most fuel effecient. I never run higher than that.

Good Luck Steve-

Bret
OM
Posted 5/4/2007 10:04 AM (#254551 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


According to the newest Kiplinger Letter the gas price run up is because of mishaps at refineries in the US and Europe. It says the price increase should "lose steam quickly" and that 2007 prices will average 15 cents less a gallon than last year.
Bukes
Posted 5/4/2007 10:13 AM (#254553 - in reply to #254551)
Subject: RE: Gas Surcharge -Your Opinion





OM - 5/4/2007 10:04 AM

According to the newest Kiplinger Letter the gas price run up is because of mishaps at refineries in the US and Europe. It says the price increase should "lose steam quickly" and that 2007 prices will average 15 cents less a gallon than last year.


Kiplinger Letter, top-notch information source. Short and to the point.

Although I am biased, my uncle wrote that letter at one time. He has since retired.
bigjoe
Posted 5/4/2007 10:21 AM (#254554 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


I just read an article online from the AP that said gas prices will likely remain high thru summer....so I guess it depends on who you listen to...
Fish
Posted 5/4/2007 11:00 AM (#254563 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


If I have already hired a guide I would expect to pay only the price quoted at the time of the trip. If the guide called me before the trip (a couple of weeks not days) and said there was going to be a surge charge and gave me the choice of paying or canceling the trip I would not heistate to pay the surge charge at all. If he doesn't tell me untill I show up for the trip or time to pay him then I would be unhappy. I just want the information up front so I can decide on what I want to do just like any other transaction.
lambeau
Posted 5/4/2007 2:13 PM (#254620 - in reply to #254519)
Subject: RE: Gas Surcharge -Your Opinion


The fuel surcharges companies are getting charged fluctuate daily. The base rate for the haul is $x,xxx.00. Then, the surcharge, will fluctuate between 3-25%...almost daily!

it may fluctuate wildly, but it's a known and expected part of the business. the drivers and companies both know ahead of time that there will be a variable fuel surcharge. imho, the key is knowing ahead of time.

i had an experience with a guide who at the end of the day asked for $150 more than we'd agreed when the trip was booked. needless to say i was a bit miffed by his gall. i paid him the previously agreed price, a very nominal tip, and have not rebooked him; in fact i've advised others against hiring him. this speaks to Norm's point about the importance of reputation/word-of-mouth. i'm cool if it's up front and above board, just don't surprise me because that feels shady.

I think if any guide were to just tell his clients, via e-mail, phone call, etc., that if prices jump up very high, there might be a fuel surcharge.

if someone were thinking of going with a surcharge at this point, i think your suggestion is a very good one - no surprises at the landing this way and the client has the option of canceling the trip now and getting their deposit back.
my guess is that most clients approached in this way would understand and be willing to pay the extra $20 (or whatever) it would take to keep the trip.
mikie
Posted 5/4/2007 2:27 PM (#254624 - in reply to #254620)
Subject: Re: Gas Surcharge -Your Opinion





Location: Athens, Ohio
Yeah, Mike, that happened to us at the last Sabaskong Bay outing: we were told on the last night when we were settling up the lodging bill that there would be a "warfage" charge of $10/day for use of electricity at the boat dock. Never a mention of it before then. Some paid it, some didn't, some vowed not to return. Moral: last minute financial surprises are usually bad for business. m
crackpot
Posted 5/4/2007 2:40 PM (#254627 - in reply to #254624)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 214


Location: Central Iowa
I had a last minute financial situation up in Canada one year that didn't go over too well. We were on Wabigoon staying at a place that I won't mention and we had 3 rental boats...well every night the owner went down and supposedly checked our props and decided they needed to be replaced without us knowing he was doing this. So at the end of the week when we went to "settle up" we had like 6 or 8 rebuilt props on our bill for $40 a pop or something. Not much you can do at that point since its pretty much your word against his. All it accomplished really was leaving a bad taste in our mouths and I doubt anyone from that group will ever go there again. His lose I guess.
Serpant
Posted 5/4/2007 2:43 PM (#254628 - in reply to #254624)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 110


Location: Albertville, Minnesota
Jonesi, you made your decision and may your client outings bring multiple fish days, PB's for clients, and overall informative/good time fishing so that the tips double to help out on the gas. Carma (or Karma) mo fo.

Only a month away.

Chris
Missouri Wayne
Posted 5/4/2007 2:45 PM (#254630 - in reply to #254519)
Subject: RE: Gas Surcharge -Your Opinion


If I showed up in the morning and the guide told me there would be a surcharge because of gas prices, I would not be happy. I would still go fishing but the tip would be adjusted accordingly. Whether I would ever fish with that guide again would depend on how I evaluated him and if hiring him was a good deal.

Tell me up front that the price is $ per day plus fuel and I will understand that with no problem.

A fifty would be nifty.
Steve Jonesi
Posted 5/4/2007 2:58 PM (#254637 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 2089


Serp, You Rock!!! See at the Red Door this Summer! Steve
Smokin Joe
Posted 5/4/2007 5:19 PM (#254659 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 311


You tell em Steve, your "I will do anything to make my clients happy" attitude is why we have a date in Sept. (also b-cuz you seem to catch BIG fish) but I have no problem with the gas surcharge if you put me on a BIG girl........lol........
ivpush unlogged
Posted 5/4/2007 6:15 PM (#254671 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


Steve
I would probably call all the booked clients and tell them you are adding a surcharge for eleveted gas prices this season. I would then tell them since they were already booked, they would not be required to pay it, but all add-on days or any furthur bookings will be subject to the surcharge. If I were one with a date already booked, I would pay the surcharge, but I know some will not. This way, the ones that do ante up will help with the fuel bill.
For next year, I would raise your rates, or advertise a 5 or 10% surcharge is possible due to high gas prices.

Howard
davidd
Posted 5/5/2007 9:10 AM (#254755 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 65


Location: De Pere Wisconsin
I think musky guides don't charge ENOUGH to begin with. I can go out with a guide for 295-350 dollars. In their 30++++ thousand dollar boat etc. Using expensive baits etc, etc. Look at fly-fishing, my best friend owns and operates a very successful guide business and they get 350 dollars a day WADING, and 395 in a drift boat. Drift boats cost 5-7k and have no motors! The musky guides could get way more. I think you guides out there are simply too timid on your pricing. Raise your rates, you are worth it.

Also, think if 1/4 of your clients bail, but you are getting the same amount of dollars....same dollars but less gas used , less wear and tear on equiptment and so on. You guys need to run your guide business like a business, if expenses rise you HAVE to account for it. Also, I don't think it would be the worst thing in the world for a guide to being higher priced than his competitors if the guide is a "name" guide or has a reputation for big fish or knowledge of that water, numbers etc. See what the market will bear and go for it.

Good luck!
Snowcrest 6
Posted 5/5/2007 10:46 AM (#254758 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion




Posts: 303


Location: Valentine, NE USA
Well, if there was more time between now and the opener, I'd say simply send a postcard to all your booked clients, stating the surcharge would be added to the bill, and ask for their understanding.

Since there's less than a month until the opener...I'd have to say yer screwed. Better to eat the added fuel costs now than lose all your future business.

Unless...you can casually bring up the topic of gas prices while you were fishing, make a short conversation out of it, and leave it at that.

Hopefully, you'd have a client in the boat that's smart enough to take a hint, and get a better than average tip to make up for it.


Esox Man
Posted 5/5/2007 6:05 PM (#254784 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion




Posts: 50


Location: Central Wi.
I'd be happy for the chance to fish with Jonesi, gas surcharge or not.
Steve Jonesi
Posted 5/5/2007 6:46 PM (#254787 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 2089


Wow, I appreciate the kind words , but I think I've got to chime in again, as I see a potential #$#@ storm could develop. I think it's really cool that this many people have reponded and have an opinion. When I made the initial post, I was discussing gas prices with another agent and he had some of the same insights as many of you.Gas is certainly an issue. I smoke Marlboros. Lots of 'em. If I stop killing myself with the cancer sticks, I run 2!! boats at full throttle all day every day of the open water season. I'm super detailed when it comes to some things. I like being prepared. The word budget has been mentioned a few times. Essential to any business/business plan. Pretty elementary.Now, as you review #'s and do some projections when something comes up( Potential huge gas price increase this Summer+-) and you start crunching the numbers, it's pretty alarming. The purpose of this post was to see what people think. I could have worded my initial post better, because I think I may have led some to believe I was going to do it. Not the case. No complaints from me either. I do it by choice and because at one time I had a few goals. Real goals , on paper. I aslo do it because I kinda get off on making people happy and becoming a permanent part of their memories of the outdoors. I do it because I get to meet and become friends with some really cool people. I do it because I get to LEARN something on the water every day. I hope the good stuff continues on this thread and bring on June!!! Steve
Trophymuskie
Posted 5/5/2007 7:30 PM (#254797 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 1430


Location: Eastern Ontario
Gas prices going up is the same as we dealt with the Canadian Dollar the last few years. I actually took the brunt on it for a couple of years and last year I started to change my rates in Canadian dollars as I could not afford to lose 15%. Remember that is 15% of the total incoming but my expenses including lodging and meals stayed the same.

I think you just need to bite the bullet on this one and raise your prices for next year.
reelman
Posted 5/5/2007 7:59 PM (#254801 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 1270


HEre's a question for those who would want to charge a fuel surcharge: If gas prices go down to $1.50 a gallon do you plan on giving a refund to the clients who already booked with you since you will not be paying as much for gas?

You made a contract with these clients I feel that you should uphold your part of the deal. On new clients I would raise your price.
Mr Musky
Posted 5/5/2007 10:30 PM (#254824 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


My thoughts are Steve that if you allready have the trips booked, it would be unfair to raise the price because the dates are set in stone and who really wants to hear that their guide trip is going to be more expensive. You have to realize that it's going to cost your clients even more money just to hook up with you. Now if you are still booking new clients for the year absolutely add that $25 on to there, they should be happy just to get a trip w/you. But you should not change the rates for your booked customers for 07. Just hope that good tip's make up for it or do less traveling.

My partner and I are taking a guide out for the 3rd time with him,same guide same place in the norhwest angle of Lotw and what he charges is his minimum rate plus his gas run. So it is not a cheap day on the water but something that is so well worth it! So my thoughts are you should raise the rates for the clients who are signing up for the remainder of the season.

Mr Musky
cjrich
Posted 5/6/2007 7:05 AM (#254837 - in reply to #254353)
Subject: Re: Gas Surcharge -Your Opinion





Posts: 551


Location: Columbus, Georgia
Steve,

I am not a guide, but am a businessman.

I'd say that for those that you have already booked; raising your fee would be a dangerous game. You could stand to lose a few of those clients next year.

However, raising your fee for future bookings is (at least modestly and absorbing at least 50% of the increased price in gas) is something your clients should understand.

I would assume that many of them drive from out-of-state to fish with you Steve, and having some so, they are already aware of the pinch to their own wallets over the gas increases (so they SHOULD understand)

I am driving from Kentucky to Lake Of The Woods this August (pulling my rig), and fully expect that the gas increase between getting there and actual gas for a 115HP Optimax should increase the costs for the week by at least $300 to $350.

I would understand if you raised your fees. This is not something that you can control.

Craig

Edited by cjrich 5/6/2007 7:10 AM
Mikes Extreme
Posted 5/6/2007 10:10 PM (#254940 - in reply to #254519)
Subject: RE: Gas Surcharge -Your Opinion





Posts: 2691


Location: Pewaukee, Wisconsin
Very good points by everyone. I would believe most if not almost all clients would be happy to slip an extra $20 on top of the tip to pay for the extra gas burned. It's a big pond you guide on and if your all over it doing your job your clients should take care of you.

One thing you can bring up to them while fishing is the cost of gas and time on the water. If you want to keep the cost down, drive at a slower speed. This will save cash but take away from their fishing time. If they don't mind helping kick in a few bucks, then hammer down and get in more casts.
Troyz
Posted 5/6/2007 10:38 PM (#254943 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion


Mike makes a good point, talk to your clients about gas and what they want to do. Bottom line fishing big ponds like in Mill lacs, V is alot different than a 3000 acre lake. Heck you can burn $70-100 in gass in a day. Not counting tow vehicle gas. Conditions come up where you know the fish are going on a certain spot, and it is 20 mile run, if the guide is eating gas cost loss. Are they going to make that run? and if so I would be running a 4000 rpm, saving gas, burning fishing time. It is a business and need to be run like a business. Yes you want to get the client on big fish but everytime you take a chance, and watch $20 bills fly out the boat trying make things happen, guides will probably take less chances.

Steve

I would pay gas surcharge, at Herbies it has been a day rate, plus gas burned? Pretty fair I think, Paying for knowledge, and he is coverying his cost. Here in MN I would be running something like $250-300 a day, plus gas.

Good luck

Troyz
Tiger
Posted 5/6/2007 11:47 PM (#254952 - in reply to #254943)
Subject: Re: Gas Surcharge -Your Opinion




Posts: 221


Location: ohio
well,
if I booked a trip and was contacted asking for a $20 surcharge a day for gas i really wouldnt complain,if I already paid $250-$300 for the trip i sure would not cancel it for an extra $20.00
dougj
Posted 5/7/2007 5:35 PM (#255074 - in reply to #254353)
Subject: RE: Gas Surcharge -Your Opinion





Posts: 906


Location: Warroad, Mn
Most of the guides that I know of on the LOTWs in the Angle area charge a daily rate, plus gas/oil. This is true for both muskie guides and walleye guides.

We've done this for years, mainly because it's very hard to come up with a reliable
guess at how much gas you are going to use given the size of the lake and how far you need to go at different times of the year. It also changes if we are trolling or casting. If we tried to guess our gas costs, I would guess we would be on the high side, and guide costs would probably be higher than what they are now. It may be a little uncertain to the client how much a guide day is going to cost, but I'll bet it will be the cheapest in the long run. I also don't want to feel that I can't show a client his best chance at a fish because it's too far away!

I try and keep my daily charge as low as possible, knowing that the gas bill can be high.

With the current changing gas prices, I can't think of any other way to do it on the LOTWs. I always give the client some sort of guess as to the number of gallons of gas we'll use, but tell them that this is just a guess and it could vary by quite a bit. Wind velocity and direction, plus load, plus number of stops, all change my MPG.

Doug Johnson