Fuel Surcharge Information
Effective February 1, 2010
Current fuel surcharge: 1.75%
WHAT
As you are no doubt aware, increases in fuel prices have had a large impact on the costs of running a business – especially a business as dependent on transportation as we are. We are past the point where we can absorb these increases, and find that they are a cost that must be passed through.

WHY

Our vendors and freight companies pass on the additional cost of energy by charging us a surcharge.  This is currently ranging from about 2% from some vendors up to a current level of 57% for holiday flower transportation.  As our vendors vary their add-on fuel or transportation charges, we must do the same thing.  We know you face this same issue in your own costs, and understand the challenges.

We’ve also felt this pinch on our own trucks. We purchase well over 1500 gallons per month to keep our trucks at your door each week, and our trips to the pump are no more pleasant than yours are.

HOW

Every wholesaler is facing the decision on how to handle this issue. Some are choosing to simply increase prices to account for the costs. We have decided to use a fuel surcharge instead for several reasons. A surcharge is by nature more flexible; when prices change we can react easier by changing our surcharge percentage – or by simply eliminating it altogether. Increased prices tend to stay increased forever. This also allows us to eliminate the “price of the week” game which is especially tedious on fixed price standing order products.

We are tying our fuel surcharge to the US National Average of diesel fuel, as published by the Energy Information Association according to the following scale:

Diesel per gallon               WFS Surcharge
Below $1.25                           no surcharge
$1.24 - 1.49                            .25%
$1.50 - 1.74                            .50%
$1.75 - 1.99                            .75%
$2.00 - 2.24                           1.00%
$2.25 - 2.49                           1.25%
$2.50 - 2.74                           1.50%
$2.75 - 2.99                           1.75%
$3.00 - 3.24                           2.00%
$3.25 - 3.49                           2.25%
$3.50 - 3.74                           2.50%
$3.75 - 3.99                           2.75%
$4.00 - 4.24                           3.00%
$4.25 - 4.50                           3.25%
$4.51 - 4.74                           3.50%

We regret being forced to pass this cost along, and hope that circumstances allow us to eliminate it as soon as possible. If you have any concerns or comments, please feel free to get in touch with me any time. You can call me any time at (800) 351-5515 . I welcome your input.

-Mark Berglund
-Washington Floral Service