On the day I wrote this column in mid May, diesel fuel, on average, cost $2.41 more than just one year earlier—and that was down from a couple of weeks previous. Many other prices, for both standard commodities and standard replacement items, had seen similar increases. In addition, the lead time for purchasing new sweepers from most all U.S. manufacturers was from 90 days to much more—some were simply taking deposits on future orders and couldn’t tell you just when you might expect to receive delivery.
My point: If you’re not re-evaluating your existing contracts given today’s rising prices, then you’ll soon find yourself behind that proverbial eight ball. For example, have you enacted a fuel surcharge on current clients? If not, why not? Use data, like we provided to our WSA members some time ago, to substantiate your surcharge amount. Also let them know at what fuel price you would remove the charges, when/if fuel prices come back down. Then remember to do that. If you get pushback from long-time customers, consider that you can ‘make points’ by offering to suspend it for them ‘this time.’
Have you also considered what standard wear parts you should be stocking in larger quantities, given the many well-documented supply chain issues we’ve seen lately? Talk to your suppliers to find out what they suggest in that regard. They are likely to know the pinch-point areas of supply they have identified on their own horizons.
Finally, with the unfortunate recent demise of Paver & Sweeper Market magazine, which since the 1980s has been THE go-to publication dedicated just to used equipment, be sure to line up new sources for used sweeping and related vehicles. You never know when you’ll need one due to a catastrophic failure or accident, let alone due to normal wear-and-tear. Oh, and expect those to all cost more than last time, too.
