NOT raising prices....(just an idea)

[AboveTheCut]

I have read everyone's opinions on raising vs not raising their prices to offset the rising fuel costs. I have decided not to raise mine until the begining of next season or for any new one-time jobs. I have been thinking about sending a letter with my invoices to all my customers letting them know that I am NOT raising their prices or adding a "fuel surcharge" (like others, ie ups, fed ex, dhl, etc.) I am wondering if this will look better for me (reminding them) or if it will make me look bad (for whatever reason). I figure its only a couple more months for the season and I think I can handle a little less profit if it means holding on to customers for next year. What do you think?

[DUSTYCEDAR]

a little note mignt not be bad

[CutApproved]

above the cut,

If your not raising then I think a letter stating.... Although the fuel costs have risen lately, I will continue to honor your current rate blah blah blah..

Sounds like a good idea to me.

[PR Fect]

Sent the same type letter last week to all of our customers. Then the gas went up $.80 a gallon this week. But I still think it was a good idea. The problem is those who are starting to ask for a price on next years services. How much of a raise will be enough? PR

[thecolorgreen]

I have read everyone's opinions on raising vs not raising their prices to offset the rising fuel costs. I have decided not to raise mine until the begining of next season or for any new one-time jobs. I have been thinking about sending a letter with my invoices to all my customers letting them know that I am NOT raising their prices or adding a "fuel surcharge" (like others, ie ups, fed ex, dhl, etc.) I am wondering if this will look better for me (reminding them) or if it will make me look bad (for whatever reason). I figure its only a couple more months for the season and I think I can handle a little less profit if it means holding on to customers for next year. What do you think?

AboveTheCut, what about next year? Will your customers still be in your "I'm not raising my prices like everyone else" mentality when you try to raise them next year? It seems to me that doing that will work against you because at some point, your goining to have to raise your prices.

[bobbygedd]

sounds to me like you're asking for a patt on the head from your clients.

[YardPro]

why would you not want to recover the costs????
it won't make a hill of beans as far as customer loyalty goes...

[Dirty Water]

I think its a bad idea, you will raise your prices next year, when gas hits $4 a gallon.

But your customers will still be thinking about that little card you sent. However, if you didn't raise your prices, your customers wouldn't even remember the card.

[fred pereira]

New to site ,but have been in business F/T for one year, P/T 3yrs. and have pondered the same. I was told A LOSS IS A LOSS ....... and its never made back up . I mean , Only a couple months ago I remember a Wendy's Jr. cheeseburger being 99 cents but they raised the price to 1.29, but you didn't hear anything about that. People just paid the difference.(approx 33%). Its expected that if you do raise the pricing you may loose a few, but there will be new customers to replace the old ones . Just figure out what percentage would keep you in the same profit range and sell yourself .

[YardPro]

sounds like you are on your way to making it in this business....


abovethecut

remember this is a business....... plain and simple.

and the " a loss is a loss and can never be made up" is soooo true, especially in our business..

we sell time. and as we all know, time can never be recaptured... is just goes on and on, like an unstopable river.

with our industry and it's short maney making timeframe, it is even more important to get every penny you can in your pocket before winter rolls around.

[yardmanlee]

I was thinking myself that if the gas prices go above the 3.50 mark then
a 10% increase will follow, which really isnt that much per mowing.
just a thought. how much is too much ? Im pretty established and have yet to advertise all my customers have came by word of mouth or just seeing my work. which i think is the best way to advertise

9yrs part time 1st full time yr. and things are better than expected

[prizeprop]

My original thought was to charge a gas surcharge, but after further thought and consideration of the numbers, I decided not to at this time. The reason is the drought. We have barely had any customers call for skipped cuts and they continue to pay us for services that are barely nessessary with no complaints. Our profit margin has actually gone up during these times of high gas prices.We also had a light growth season during the spring.I know this will not be the same senerio during leave clean up which start November 1st. If gas remains at these levels or higher by then, I'm sure I will increase prices accordingly as much more fuel is used during cleanups.

[topsites]

Sent the same type letter last week to all of our customers. Then the gas went up $.80 a gallon this week. But I still think it was a good idea. The problem is those who are starting to ask for a price on next years services. How much of a raise will be enough? PR

Ok, check it out guys, I think we're on the same track and I like your ideas because you're telling your regulars that all the while they've been good to you NOW is the time we are being good to them... The price of fuel hurts ALL of us, customers budgets are being hit just like ours so it is only fair we ALL suffer. That having been said...

WHEN someone asks, listen carefully as you may determine in the sound of their voice whether they WANT to pay more or not. If you can NOT determine it, spend a little blab talking in the direction OF raising the price a little and see the reaction and be prepared to reverse the direction if their reaction turns negative.

For those who send positive vibes, I say go up by 5 bucks and here is the reason why ALL my prices end in 0 or 5, I don't play nickels and dimes and my customers know an increase means 5 bucks. But if you have this $32.75 yard then round up to 35 should go easy, easier than 30 to 35 for sure and I can almost guarantee 32.75 to 40 is NOT going to work thou 36 or 37 (maybe 37.50 if you want) SHOULD if you're ok with the odd figures.

What happens in the end is not ALL customers will go for it, thus those who DO increase by 5 help buffer those who do not. Here again it is a trick to figure out the yards that are paying top-of-barrel, those customers paying already $40 for a $35 / yard can likely be left alone and in MOST cases they will NOT even mention it thou you MIGHT get so lucky as to get 45 out of them, I might recommend against doing so but IF someone does do it, be prepared to start including a bit extra without them asking (I dunno, trim some hedges for free or pull some weeds or do something you're not doing now).

I think I like the idea of a letter with this sound to it, that is very nice to carry someone through the rest of the season at current prices.