How do rising fuel prices affect home services costs?
If you own a car or a television, you’ve probably noticed — gas prices are surging to record highs. AAA reported a national average of $4.25 per gallon last week, with gas prices predicted to creep up even more in the near future. This extra cost is adding fuel to an already hot fire for business owners and consumers in the grip of inflation. But is this pressure at the pump going to impact homeowners looking to hire pros for their home improvement projects?
Most likely. Here’s what we know.
Angi recently polled our pros to find out how this recent spike is impacting their businesses. Due to surging gas prices, nearly 75% of pros say they will raise prices or rates (or already have) to make up for this added expense.
Joshua Belcher, owner and operator at Liberty Landscaping in Knightstown, Indiana, used to offer all his customers free estimates. But now, he’s had to start charging for that service and raise prices by 20%.
“You want to do the best you can for your customers and give them fair deals,” he says. “But in order to stay afloat, you have to charge for things you used to do for free before.”
About half of Belcher’s customer base has been able to afford the price increase. For the most part, homeowners understand.
“Customers who appreciate your business and have the financial means do have your back during these hard times,” he says.
“It’s a bummer for them but they understand. Certain customers we’ve lost because they say they can’t take the price increase.”
Phil Boonstra, owner of PR Builders in Windsor, Colorado, says 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 says.
“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. Here are some tips:
Communicate with your pro and expect the extra charge:
Pros have to factor in the extra cost of gasoline required to make it to your home. Asking about any extra fees related to gas prices can save homeowners sticker shock later on. Until gas prices cool off, it’s helpful for homeowners to budget for this extra expense when hiring a pro.
Consider bundling your home projects together:
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.
Book pros close to your home:
Hiring a local service 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.