There are a few ways homeowners and pros can work together during this tumultuous time at the pumps
Gas prices recently surged to a record high national average of $5.01 per gallon, according to data by AAA, putting a further strain on business owners and consumers who’ve felt the grip of inflation. Gas prices have ticked down a bit since hitting that high on June 14, but price pressure at the gas pump is extending to homeowners looking to hire for their home projects.
Earlier this year, Angi polled our pros to find out how this recent spike is impacting their businesses. Over 90% of Angi pros are expecting higher gas prices this year and nearly 95% (94.9%) say that higher gas prices have an impact on their businesses. Due to the changing gas prices, nearly 75% (73.5%) of pros say they will be raising prices or rates or have raised prices and rates to make up for this added expense. Download the PDF for more survey details.
Joshua Belcher, owner and operator at Liberty Landscaping in Knightstown, Indiana, used to offer all his customers free estimates. But now, due to gas prices, he’s had to start charging for that service.
“Say we are 20 miles away; before that’d be a $10 cost for us, and now it might cost $40 to drive out and give an estimate,” said Belcher, who has had to raise prices by 20% this year. “It’s little things like that. You want to do the best you can for your customers and give them fair deals. But in order to stay afloat, you have to charge for things you used to do for free before.”
About 15% of Belcher’s 20% price increase is due to fuel costs, he said. The other 5% is because of inflation. Fuel costs extend beyond just transportation—for a lot of home improvement pros, it now costs them more to power their lawn mowers and other machinery.
“Anyone in any kind of home service industry, especially landscaping or lawn care, takes fuel to get to the job and do the job,” Belcher said. “It doesn't just cost us to get there, it costs us to be there too.”
About half of Belcher’s customer base has been able to afford the price increase. For the most part, homeowners understand where he’s coming from.
“Customers who appreciate your business and have the financial means do have your back during these hard times,” Belcher said. “It's a bummer for them but they understand. Certain customers we’ve lost because they say they can’t take the price increase.”
Exteriors and landscaping aren’t the only home improvement service industries taking a hit. Brian Lazcano, an electrician and owner of 3 Phase Electric in Whittier, California, said he’s had to double his prices due to the skyrocketing cost of gasoline.
“On top of the gas prices, it’s also the inflation on material cost. But because of the gas costs, I’ve had to raise prices up by at least double because I’m having to take a few trips back and forth from job to job,” said Lazcano. “If you have a job that takes two or three visits, that really adds up.”
Phil Boonstra, owner of PR Builders in Windsor, Colorado, said rising gas prices increase his subcontractor costs and he has no choice but to pass that on to homeowners. “Some of my subcontractors are an hour away from the job, and every time they’re filling up, they’re seeing a $20 or $30 increase in cost,” he said. “They start adding trip charges to their work, and that gets passed on to the consumer. On a basement remodeling job, that’s an extra few hundred dollars. It really starts to add up.”
But there are ways for both homeowners and pros to work together and save on transportation costs.
Homeowners can ask their pro ahead of time how much they’ve increased prices recently. While some fuel-related increases are baked into the overall estimates, other pros might charge a specific fee to offset the additional expense. Asking about any extra fees related to gas prices can save homeowners sticker shock, later. Which leads to the next tip…
Pros have to factor in the extra cost of gasoline required to make it to your home. Many pros are now wrapping this additional cost into their home project quotes. Until gas prices cool off, it’s helpful for homeowners to budget for this extra expense when hiring a pro.
Have a few things that need tackling at your home? Think about hiring a handyperson who is able to handle a few different jobs in one visit. That way, you (and your pro) will save on transportation costs.
Hiring a local handyperson service (as opposed to one that is a town or two away) can save homeowners money in transportation costs. Plus, pros may be more likely to take on jobs that are nearby, so they can avoid spending more money at the pumps. If a homeowner hires a pro that has to travel several miles to the job, the transportation costs will likely show up in their estimate. You can search Angi.com or download the Angi app to find a vetted handyperson near you.
While it makes sense to charge a small fee to come out for an estimate, Belcher recommends pros offer free quotes if a customer gives the green light for the job. “We make our estimates free if they accept the quote, and the quote is over $250,” he said. “If they want to have more work done at a certain cost then it’s worth it for us to provide the free estimate.”
