Consumers are reminded of rising petroleum costs each time they pull up to the gas pump, but they could soon feel the soaring price of oil well beyond the gas station. That’s because the cost the oil is also affecting material prices.
Angie’s List, the nation’s leading consumer ratings service, surveyed 75 service companies including roofers, painters, asphalt driveway installers, window and lawn care companies. Ninety-five percent said rising petroleum costs are affecting their bottom line.
The companies are faced with a difficult decision; do they attempt to absorb the cost if they think they’ll be temporary or do they pass them along to the consumer. These companies will try to absorb the costs as long as they can, but you might start to see prices go up on those products. For example, roofers told us prices for asphalt shingles are increasing anywhere from 15 to 50 percent and paint costs are increasing by $3 a can, and in some cases as much as $10 a can.
In addition to asphalt shingles and driveways, petroleum is used to develop a number of other products including vinyl windows and siding, plastic pipes, lawn fertilizer, paint, oil filters and tires.
According to the survey, companies say prices for asphalt driveways, sealers and rubberized crack fillers have increased 30 to 70 percent. Lawn care companies report fertilizer has increased 20 to 30 percent.
The rising cost of oil: Angie’s List advice for companies and consumers.
• Companies should be upfront about passing along the costs. Most customers will understand if they’re made aware ahead of time.
• Be flexible: Don’t be surprised if you’re paying more for a product that is not petroleum-based. It’s costing more for companies to get shipments too.
• Practice some patience: You may have to wait longer for your custom order to be shipped. Most suppliers won’t send half-full trucks as a result of high gas prices.
• Know what you're paying for: Insist on itemized charges related to material costs so you know exactly what you are paying for.
• Comparison shop: If you're just getting started on your project, add material cost questions to your list of things to ask about, and don't be afraid to negotiate.
*75 service companies responded to the survey. Responses are representative of service providers rated on Angie’s List, but not the general public.
