Cost of new machines

[Frue]

All the talk of the new machines have got me thinking. These companys have raised the prices of these machines over 45% In the last 10 years. So this means we should have been able to charge 45% more for our services right?
So this means a 100 dollar lawn should be 145 now?

So when I read these threads from manufactures writing threads about the goverment and the cost of doing business has to go up in 2009, Please dont expect me to feal bad. SEE MANUFACTURES YOU STICK IT TO US because we need equipment but we cannot pass the cost over the customer especially in these days.

See we get concerned about passing the cost, manufactures they say screw it pass it on......

[jaybird24]

Just because the cost of equipment goes up 45% doesn't mean rates do. There are many other costs included in our overhead, and machines and fuel are low compared to payroll. I view machines as a necessary expense and unless I am buying a specialized piece to do a specific task I can't really charge more for it. Let's say that ten years ago it took you 1hr. to do a job. With the advances in mowers now you do the exact same job in 45 min. The savings in payroll alone, not including gas and the fact that you can now fit in 2 more jobs a day, more than pay for the extra upfront expense on the mower. Every couple of years we adjust our prices, not necessarily cost of living increases, but we strive to be more efficient which more than makes up for it in the end.