This week’s question: “Should companies explain why they’re passing on fuel costs to customers?”

Yes! I’ve written about this in the past, and I’m amazed companies don’t do more of it. Everyone knows gas prices are going up — most will accept higher prices if they can see how your costs are impacted by rising energy costs.

These can be anything from fuel surcharges on deliveries and transportation, to less obvious ones in the following industries:

• food manufacturing — fertilizer
• concrete or steel production – both of which use tremendous amounts of heat
• food production — heating or cooking food, and
• health and nursing — facilities that use hot water pools for exercise or muscle treatment.

There are also nearly invisible rising costs for many companies. Take, for example, natural gas costs for heating a building — it’s risen from $2 per 1000 cubic feet a couple of years ago to $15 this year.

I believe we’ve already moved from accepting higher prices to anticipating higher prices. If you choose not to raise your prices, that’s big news — you should use that leverage to market and promote your distinction.

Tags: Energy costs, Fuel prices, Natural gas, Surcharges, Transportation