Fed report: Natural gas prices will continue to ri

[supersuds]

good post, although a little depressing - another reminder to keep raising the dryer prices like we've been discussing:

http://laundrycapitalist.blogspot.com/2008/05/fed-report-natural-gas-prices-will.html

[Steven04]

Do you think gas prices will ever come down? Gas prices has increased every month so far this year.

I'm already at 8mins/quarter, I might have to change it again to 6mins or maybe raise my washers.

[supersuds]

unfortunately no - even with current stores high for NG - the demand will continue to go up as people do anything to get away from oil and turn even more to NG in their homes - I would like to raise another nickel on my dryers soon - while all this is in the news! helping the customers to understand

[epic02]

The more reason why IM glad I went from 12 min to 10 min Im just happy my customers were understanding. It's been two weeks and the same customers are returning. I'll know in a couple days when I do my count if my dryer revenue went up.




Kenny

[MatNapper]

I'm at 45 cents for 8 minutes now. Surprisingly only a few comments out of the hundreds of customers. They see the news - pretty understanding. We're in this business to make money.

[epic02]

http://www.socalgas.com/business/prices/pricing_monthly1.shtml


That means my gas bill will go up approx $254.00
after tax and delivery it should come out to $1.35 a therm.





Kenny

[supersuds]

not fun - I also noticed the prices per unit go up this month (as they usually go down in the Spring!)

http://laundrycapitalist.blogspot.com/2008/05/fed-report-natural-gas-prices-will.html

[Adamski]

Kenny,

It's been two weeks ... have your competitors followed your lead yet?

When my natural gas cost went up to $1.30/ccf (including taxes, delivery, etc), I raised my dryers to 5 min/qtr. That was in December of 2006. It's back up to the $1.30 now. When it hits $1.75/ccf, I will cut my dryers to 4 min/qtr and then begin the conversion over to 16 min/dollar coin.

Larry /ubbthreads/images/graemlins/cool.gif

[surfflite]

I received a letter from my gas co. in Feb. announcing a 33% increase. I raised my dryer prices 40% in early April, very minimal complaints. I then raised all my washer prices a couple of weeks ago anywhere from 17%-23%. Again very few complaints. I've made quite a few improvements to the appearance of the place during this same time frame so I think between that and the fact that they watch the news and are aware of our economy, it has eased the pain.

I think now is the best time to get those prices raised in the laundry business. With all the doom & gloom about the economy that the media reports, it makes sense.

[epic02]

Not yet, Yesterday I talked to another competitor of mine that's a couple miles away. He said he was going to do it but he's more concerned with the mats that are closer to him because there still at 12 min per .25 cents. I told him there's no better time then now because of all the attention. If he waits to the gas comes down and then lowers his time customers will get more upset.




Kenny