Sunday, June 8, 2008

Are some venders cashing in on the fuel crisis?

Recently I received a notice of increase from one of my vendors stating that they were increasing their fuel charge from $2.00 per delivery to an adjustable charge based on the average price of a gallon of diesel. My first thought was ok, oil has gone up considerably. My next thought was are they only delivering to me within a 10 mile radius? At the previous $2.00 per delivery this is about ½ of what it costs for a gallon of diesel. Even if they only have 3 of us in the same 10 mile radius we paid for that gallon of fuel used for the delivery plus some profit.

I called the company to cancel my service, to protest their cashing in on the fuel crisis, and they immediately changed there policy to offset for this obvious inequity. I imagine I was not alone in complaining and at the same time they probably had many other customers that just accepted that new charge without question.

The moral of the story is question extra charges added to your bill as this is a way to up sell and still appear to be competitive. Adding special coverage, delivery and handling, fuel adjustments, and other charges are a way to add in extra profit after the sale.

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