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View Full Version : HIGH prices


rcreech
02-20-2009, 07:30 PM
This is my 5th year in business...and I have always been very competitive on pricing (I think anyway).

THIS year I have been questioned by several people on being on the high side.

I just try and sell them on our quality of prouduct and service. Sometimes it works and sometimes it doesn't!

I only had a 5% increase...so I am trying to figure out why they I am getting some questions now!

Do you think it is due to the fact that everyone is paying closer attention to what they are paying?

I used to know TG and Scotts pricing...but now with all the fert prices and economy I am not sure.

Does anyone know what the competition is doing?

Anyone else being questioned on their price increase?

I guess I don't care as I have yet to negotiate a price...and probably won't unless I start losing some business!

grassguy_
02-20-2009, 07:39 PM
Hey RCreech! Think most ppl are starting to see that $50 this year means more to them than $50 last year. that i guess goes without saying, lol,. Not really a reflection of a price increase as it is the reality of a recession.

Runner
02-20-2009, 08:18 PM
Not only that, but even though they have it now,...I think alot of people are looking forward, and being carefiul...not knowing what is going to happen. We have alot of people who are losing all their health care - including those who are already retired and it is being stolen from them by cooks that call themselves automobile corporations, and many who are on the verge off losing their jobs altogether - reGARDless of where they work and what they do. What is more than that, there are alot of people who have money, but even many of THEM are watching what they are doing, because of the amounts they have in stocks, bonds, cd's, and everything else that is suffering. I don't know... but if it's any consolation, I think we are going to see alot of our indirect costs not only not rise, but many of them will literally go down. Our product prices for instance,...as demand drops, are going to drop. Fuel may very well do the same. I know it won't be in direct proportion with our decline in gross, but it may very well help cushion the blow.

rcreech
02-20-2009, 08:22 PM
I'm not super scared right now...but I am definitly scared a little.

Are you guys scared or just nervous?

Glad I got some cushion built up over the winter...or I would be totally scared!!!!!

Guess we will see!

Glad I am a small fish in a big pond!

How will the big boys (TG's etc) make it through this kind of thing? Their market share can pretty much only go in one direction!

As "little guys" we can gain market share pretty easy, but it is still scary!

philk17088
02-20-2009, 08:27 PM
I give up trying to figure it out. Cancels are actually running less than previous years. More people want to prepay also.

Ric
02-20-2009, 08:58 PM
rcreech

I am in a retirement area where most retired people have a secure income. But I am starting to get the price is too high from a few customers also. BTW I have not raised prices in the last two years. People are running scared and like you I haven't felt it but I am Darn scared.

ted putnam
02-20-2009, 09:08 PM
I agree that many of our input costs will decline. I am seeing evidence of that already. The price of Top Choice has dropped substantialy. However, I'm seeing signs of inflation as well. I have a business credit card that I have used extensively to buy and pay for supplies. I always pay on time and always more than minimum payments an often multiple times the minimum. I got a notice the other day that the terms of my agreement had changed...out of the blue! I went from 9.5% to 15.95%... No real reason given, just "economic factors". My blood is still boiling...

MStine315
02-20-2009, 10:08 PM
I've had more cancels this year than ever before. I normally lose fewer than 5 customers out of 250 residentials for the whole season. This year I've already lost 9 and the letter went out about 10 days ago. Same here Rodney-5% increase. I'm second guessing myself for raising at all, but I've always had the theory I'd rather lose a few and have larger profit margins, but it still hurts. I won't feel real bad as long as these cancels that say it's for financial reasons are just that, but if they give me a sob story and I see another companies' flag...

As far as scared or nervous, just a little nervous right now, not scared...yet. And as far as the increase, not one person has even mentioned that. It's like they just flat want out. On the other hand, my wife and I are scrutinizing our bills too. Called the cable company yesterday and cut back on some services. Good old trickle down economics.

Runner
02-20-2009, 10:17 PM
Yeah,..I am cutting back on the cable services and stuff, too. I may even have to cancel my membership to Lawnsite, too... I don't want to,...but if these prices still keep going up, I may have to. I liked it better when it was free site and there was no charge to be a member.

rcreech
02-20-2009, 10:19 PM
Yeah,..I am cutting back on the cable services and stuff, too. I may even have to cancel my membership to Lawnsite, too... I don't want to,...but if these prices still keep going up, I may have to. I liked it better when it was free site and there was no charge to be a member.

I would sell a kidney to stay on this site! :laugh:

Now Direct TV.....I could give it up anyday! Don't watch it anyway!

tlg
02-20-2009, 10:44 PM
Only had a few customers question our price increase so far. Cancels are running about normal. A few have cut some services. On the other hand we have seen a pretty good increase on extra services. Had customers add as much as $500 in extras. Some had ordered multiple extra services ( aeration and grub control for example). The jobs we have lost have been economic reasons only. We lost a large automotive supplier the other day. Kinda saw that one coming. I lost my truck salesman the other day too. I bought 3 trucks off him in the last few years. He felt worse than I did about his canceling his service. He said things were " horrible". We lost the dealership last year. They started cutting back early last year. Prepays are also about normal. About 2k a day average. Nervous? You betcha. Scared? Not about what I'm doing! Only about what everybody else is doing. It's all out of our hands anyway. Most of the stuff we worry about never happens.

tlg
02-20-2009, 10:52 PM
I agree that many of our input costs will decline. I am seeing evidence of that already. The price of Top Choice has dropped substantialy. However, I'm seeing signs of inflation as well. I have a business credit card that I have used extensively to buy and pay for supplies. I always pay on time and always more than minimum payments an often multiple times the minimum. I got a notice the other day that the terms of my agreement had changed...out of the blue! I went from 9.5% to 15.95%... No real reason given, just "economic factors". My blood is still boiling...

This credit card scam is really bull. The latest trick is mailing the statements only a few days before the due date. Nothing more than strong arm loan sharks IMO.

ted putnam
02-21-2009, 12:37 AM
This credit card scam is really bull. The latest trick is mailing the statements only a few days before the due date. Nothing more than strong arm loan sharks IMO.

All I have to say is "Capital One...What's in your wallet?" If you disagree with the new terms you are to call a number they will cancel your account on the spot and you can finish paying your existing balance at the current lower interest rate. I guess they've had so many stiff them recently that someone has to pay. Nobody left but the good customers. I love the golden rule they live by... Screw others before they get a chance to screw you.

LushGreenLawn
02-21-2009, 08:14 AM
All I have to say is "Capital One...What's in your wallet?" If you disagree with the new terms you are to call a number they will cancel your account on the spot and you can finish paying your existing balance at the current lower interest rate. I guess they've had so many stiff them recently that someone has to pay. Nobody left but the good customers. I love the golden rule they live by... Screw others before they get a chance to screw you.

Nobody left but the good customers? Those are the ones who will cancel because they do not want to be hit with a higher rate when they have always paid on time. They are going to be left with the bad customers, because those are the ones who sill stay because they get a higher rate anywhere else anyway.

ted putnam
02-21-2009, 12:40 PM
Nobody left but the good customers? Those are the ones who will cancel because they do not want to be hit with a higher rate when they have always paid on time. They are going to be left with the bad customers, because those are the ones who sill stay because they get a higher rate anywhere else anyway.

True. I have until April 27 to decline changes and cancel the account. If I do so , I'll lose 20k worth of rewards I've accrued if not used by May 27. No matter what happens I'm done using the account. I'll just use my line of credit at the bank instead.

DUSTYCEDAR
02-21-2009, 02:58 PM
Time to talk to the bank for a line of credit i guess