The surcharge nobody has touched since spring
Diesel went up. Your fuel surcharge did not, because updating it means changing a figure in the courier software, emailing account customers, and remembering that three large customers have their own surcharge terms written into their contracts. It is on the list for next month.
Meanwhile controllers quote same-day jobs by hand and sometimes add the surcharge, sometimes forget it. At month end, some invoices have it and some do not.
Why surcharges lag and leak
Fuel surcharges are simple in principle and messy in practice. Each customer's contract may reference a different index, band, review period or cap. Manual updates happen irregularly. And surcharges applied at quoting depend on the person quoting.
| Problem | Effect |
|---|---|
| Updated by hand | Lags pump prices by weeks or months |
| Different terms per customer | Applied incorrectly or not at all |
| Added at quoting by controllers | Inconsistent on ad hoc work |
| Customers not told when it changes | Disputes when invoices arrive |
| No history of rates used | Cannot explain past invoices |
What it costs
Fuel is one of the largest costs in a courier business, and the surcharge is how you keep margin when it moves. A lagging surcharge means carrying the cost yourself for weeks. Missed surcharges on ad hoc jobs are pure margin lost. And a surcharge that changes without notice causes disputes that take longer than the amount justifies.
Owner drivers feel it too. If their pay includes a fuel element tied to your surcharge, a lagging surcharge means they are underpaid, and they notice before you do.
The irregular update creates its own friction. A surcharge that sits still for six months and then jumps in one go feels like a price rise to customers, and invites a negotiation. A surcharge that moves a little, on a published schedule, in both directions, is much easier for a customer's buyer to accept, because they can see it is not a disguised increase.
And when fuel falls, a surcharge that is not reduced promptly is the one customers notice. Customers who feel they were overcharged on the way down are harder to keep on the way up.
The surcharge we build
- A fuel price source you choose, such as a published government weekly road fuel price series, read automatically.
- A surcharge table: price bands and the surcharge per band, with a review cycle you set, weekly or monthly.
- Customer terms held per account: which table, any cap or fixed rate, any exemption.
- Automatic application to every eligible job at booking or invoicing, including online quotes and controller quotes.
- Customer notices when the surcharge changes, sent by email with the new rate and effective date.
- A history of rates used and the index value behind them, so any past invoice can be explained.
The figures and bands are yours to set. The system makes sure they are applied consistently.
What changes
The surcharge moves when fuel moves, on the schedule you choose. Every job gets the right surcharge without anyone remembering. Customers are told in advance. And invoices can be explained line by line.
Signs your fuel surcharge needs this
- The surcharge is updated when someone remembers.
- Some invoices include it and some do not.
- Customers have different surcharge terms that are hard to apply.
- Controllers add it to ad hoc quotes by hand.
- You cannot say what surcharge applied to a job last quarter.