The last couple of months have seen gas prices rise by over 50%, which concerns a lot of performers coming into the busy summer season. I was on the road all of April, driving just shy of 7,000 miles that month, so I’m very aware of the rising prices.
The number of performers who are losing their minds trying to figure out how to deal with this is staggering. The fact is, when you break it down, it’s not too bad. Let’s say gas has gone up by $1.50 a gallon, and you get 20 miles to the gallon. That means if your typical range is 100 miles (200 round trip), the higher cost of gas is only $15 on that gig.
While I’d rather have that $15 in my pocket than give it to a gas station. If you buy lunch on the way to the gig, that’s probably costing you more than $15.
At the end of the day, if $15 is going to make performing unprofitable for you, you need to raise your rates.
One thing I’m going to warn you about is adding a gas surcharge. The problem with openly adding that as a line item on an invoice or a condition in a contract is when it goes away. If gas drops below a certain amount, are you giving them a credit? That math makes it a pain in the butt for the buyer. They want to know how much you cost when they book you, not how much you might cost. If they’re willing to pay you your rate plus a gas surcharge, then they’re willing to pay you that as a flat rate, and that should be your new rate.
That’s just how I see all of this.
-Louie