Pros Share How Surging Gas Prices Are Affecting Their Businesses
Rising fuel costs have changed the way some remodeling and design firms do business. Is your company affected too?
Bryan Anthony
May 16, 2022
While the 2022 Q2 Houzz Renovation Barometer shows that remodeling and design professionals remain confident in their business outlook, supply chain delays and rising costs for materials are still a concern. In particular, a number of pros responding to the survey commented that surging fuel prices have led to higher subcontractor charges, longer project lead times and the decision to not take on new projects that are farther away.
Read on for what they had to say about the effects of higher gas prices on their businesses. Then tell us in the Comments how your business is handling the challenge of higher fuel prices and the strategies you’re using to stay ahead of the curve and keep your clients happy.
Read on for what they had to say about the effects of higher gas prices on their businesses. Then tell us in the Comments how your business is handling the challenge of higher fuel prices and the strategies you’re using to stay ahead of the curve and keep your clients happy.
Photo by Charlie Day
How Higher Fuel Prices Are Affecting Projects
The national average for a gallon of regular gas right now is about $4.50 and diesel $5.57, according to AAA. That compares with a year ago, when a gallon of regular gas averaged $3.05 and diesel $3.17.
Higher fuel costs have some home professionals rethinking their drive times and avoiding new projects that are far away from their place of business.
J & S Construction & Design in Bethel Park, Pennsylvania, says, “Gasoline prices have limited travel to certain regions of the area here in Western Pennsylvania.”
Some tradespeople have adjusted the distance they’re willing to drive because of rising fuel costs. And material costs have been affected as well. “The increase in gas prices has limited the service area of different trade professionals and has increased material delivery charges to job sites,” says E.L. Designs in Watsonville, California.
Higher fuel costs have affected scheduling as well. “Gas prices to travel to specific job sites have recently become a factor in scheduling,” Cervieri Construction in Teaneck, New Jersey, says. “We won’t randomly go to a job site that is more than a 30-minute radius to do one or two things.”
Let us know: Are you feeling the pinch of rising fuel costs? Have you made any adjustments to your business model as a result of higher costs? Tell us about it in the Comments.
Learn about Houzz Pro business software
How Higher Fuel Prices Are Affecting Projects
The national average for a gallon of regular gas right now is about $4.50 and diesel $5.57, according to AAA. That compares with a year ago, when a gallon of regular gas averaged $3.05 and diesel $3.17.
Higher fuel costs have some home professionals rethinking their drive times and avoiding new projects that are far away from their place of business.
J & S Construction & Design in Bethel Park, Pennsylvania, says, “Gasoline prices have limited travel to certain regions of the area here in Western Pennsylvania.”
Some tradespeople have adjusted the distance they’re willing to drive because of rising fuel costs. And material costs have been affected as well. “The increase in gas prices has limited the service area of different trade professionals and has increased material delivery charges to job sites,” says E.L. Designs in Watsonville, California.
Higher fuel costs have affected scheduling as well. “Gas prices to travel to specific job sites have recently become a factor in scheduling,” Cervieri Construction in Teaneck, New Jersey, says. “We won’t randomly go to a job site that is more than a 30-minute radius to do one or two things.”
Let us know: Are you feeling the pinch of rising fuel costs? Have you made any adjustments to your business model as a result of higher costs? Tell us about it in the Comments.
Learn about Houzz Pro business software
Photo by Kaitlyn Fisk
Communicating the Impact of Higher Fuel Costs to Clients
With surging gas prices leading to higher product and material costs and longer lead times with subcontractors, there’s a lot to communicate to your clients to keep them up to date.
In addition to shortages of raw materials and laborers, “increased fuel prices continue to impact overall product production and manufacturing timelines, quality and customer costs. As a result, I have shifted my focus on conversations with clients to include discussion of the volatile economic climate that the market is experiencing,” Moxie Interiors in Cincinnati says.
One way to keep everyone on the same page, from first contact through project completion, is with Houzz Pro. Houzz Pro software allows you to track your communication with clients and give them a personalized dashboard with all the documents and information about their project in one easy-to-access place.
Join the conversation: How are you discussing higher fuel costs and longer wait times with your clients? How are you keeping client expectations in check? Please share in the Comments.
More for Pros on Houzz
Read more stories for pros
Learn about Houzz Pro software
Talk with your peers in the Pro-to-Pro discussions
Join the Houzz Trade Program
Communicating the Impact of Higher Fuel Costs to Clients
With surging gas prices leading to higher product and material costs and longer lead times with subcontractors, there’s a lot to communicate to your clients to keep them up to date.
In addition to shortages of raw materials and laborers, “increased fuel prices continue to impact overall product production and manufacturing timelines, quality and customer costs. As a result, I have shifted my focus on conversations with clients to include discussion of the volatile economic climate that the market is experiencing,” Moxie Interiors in Cincinnati says.
One way to keep everyone on the same page, from first contact through project completion, is with Houzz Pro. Houzz Pro software allows you to track your communication with clients and give them a personalized dashboard with all the documents and information about their project in one easy-to-access place.
Join the conversation: How are you discussing higher fuel costs and longer wait times with your clients? How are you keeping client expectations in check? Please share in the Comments.
More for Pros on Houzz
Read more stories for pros
Learn about Houzz Pro software
Talk with your peers in the Pro-to-Pro discussions
Join the Houzz Trade Program
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Costs are up across the board due to both supply chain issues and inflation. If a project cannot be structured with time-and-material, allowances have to be created for more activities and additional has to be added in for gas for sure.
In rural northern California, where gas is $5.40 at Costco, we have limited our service area to 20 mile radius and have a trip charge of $95.00. IF we decide we want to work on a project outside that radius, the client agrees to an additional $1.25 per mile which covers both employee drive time and fuel costs. One reason we also stay in that 20 mile bubble, is that our local material suppliers are still doing free deliveries inside that radius and within county lines.
I have continued to run my business as usual, but I have had to increase my rates for material and transportation costs. Since I started my business twenty years ago, I have always serviced only customers within a 25 mile radius, so I have not had to change how far I am willing to travel to work on painting projects. Thankfully, most of my projects this year have been closer to home, so that has been a positive thing and upcoming projects will be local as well.