The Raven's Mutterings Wherein Carl Cravens talks about geeky stuff

2Aug/07

Surcharges for standard services?

What's up with fuel surcharges from companies that consume fuel as a direct part of providing their service? When I buy a bunch of bananas, the grocer doesn't add a fuel surcharge for the cost of the fuel to deliver the bananas to his store... that's just part of the cost of providing the goods and is reflected in the price of the bananas.

So why then does my garbage service charge me a base rate and then a fuel surcharge on top of that? So does UPS, so does FedEx. Why is this necessary operating cost not just rolled into the base rate?

Okay, I can kind of get how that's some kind of accounting thing, and it lets them keep their base rate tables "normal" and adjust them for fluctuating fuel prices. And it serves as a reminder to the customer that high fuel prices are why the rates have gone up so much.

But answer me this. Why does FedEx Home Delivery have a $1.85 residential surcharge?

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