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CNYScapes
01-15-2013, 07:12 PM
So I had my guys keep track of all the time they spent at every property this past summer. I am just getting done going over all the information and am realizing that some of my lawn pricing is right on target, some are high and some are underpriced, some by $5 per cut.

I will be raising these low ones up when I send out renewal letters. Should I tell them I underpriced their lawn from the beginning? Or should I give another excuse?

I know I may lose some lawns but I am willing to lose a few that are losers anyway if I can not get them to pay what the lawn is worth.

What would you do?

grandview (2006)
01-15-2013, 07:16 PM
So I had my guys keep track of all the time they spent at every property this past summer. I am just getting done going over all the information and am realizing that some of my lawn pricing is right on target, some are high and some are underpriced, some by $5 per cut.

I will be raising these low ones up when I send out renewal letters. Should I tell them I underpriced their lawn from the beginning? Or should I give another excuse?

I know I may lose some lawns but I am willing to lose a few that are losers anyway if I can not get them to pay what the lawn is worth.

What would you do?

Just send it out with the new price,no need to explain most people understand.

KS_Grasscutter
01-15-2013, 07:21 PM
Yep I am going to do the same thing. The food store doesn't give you an explanation when all of their stuff doubles in price, I don't feel the need to explain myself over 5 to 10%.

LandFakers
01-15-2013, 07:22 PM
I would just send it out like grand view said
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CNYScapes
01-15-2013, 07:28 PM
Guess i just need to grow some balls and do it. I havent raised some of these in years and have been losing my azz. I should have done some time tracking way before now!!!!!:hammerhead:

Lux Lawn
01-15-2013, 09:25 PM
I dont explain when I have a price increase, I just send out the new contract with a new price. I plan on raising atleast half my customers this year.

johndeereguy
01-15-2013, 10:31 PM
Get exak time pocket clock. Instead of spending hours or days going over your employees time cards. Just look up the info on the data base, well worth the investment

branchoutshrub
01-16-2013, 03:00 PM
Just send out the new pricing for 2013. I wouldn't explain. Most customers will understand that prices are up all over. Just going to the grocery store is 5% more every year.

CLS_Birmingham
01-17-2013, 11:36 PM
Look just explain to them that thanks to Obama, beer prices have gone up and you need to compensate for that to sustain your current drinking habit.....

haha j/k. Trust me, I'm in the same boat you are and I was worried about the same thing when I sent out my first renewal on the 2nd of this month. My clients price went up significantly. 2 weeks later, I had a signed contract for the new amount, no questions asked. In this economy, people understand.

JLSLLC
01-18-2013, 08:17 AM
Very good thread for this time of the year- I need to do the same!

Darryl G
01-18-2013, 09:10 AM
Yup, just sent it out. I include a letter with mine that states that some of you will see a price increase and some mumbo jumbo that we try to keep any such increase to a minimum but that it's necessary in order to continue to provide the same high level of service they are accustomed to. But I don't go into any detail on why the price is going up or apologize. I have always tracked my times down to the minute on every lawn, but I don't always analyze the data.

Nj shade
01-20-2013, 01:48 PM
I always explain increases, fuel keeps going up, insurance costs, etc. try to stay away from 5% increase, we always use an odd number increase, 5.25%, 4.75% or whatever it is. Makes the customer feel better seeing its not a round number.

KeystoneLawn&Landscaping
01-20-2013, 03:40 PM
I raise prices 2-8 % every year to keep up with inflation and costs. One accounts that I have over priced I will still raise even if its only a quarter! Ones I have under priced, I'll raise as much as possible, but sometimes you can't fix it in one year.

Darryl G
01-20-2013, 04:55 PM
I've gone up as much as 30% in a year if I find that a new account was priced too low (i.e. $50 to $65). I'll hold the price for the season but after that it needs to come up. If they drop me over it so be it.

grandview (2006)
01-20-2013, 05:35 PM
I have somewhat of a tier system, Some of my oldest customers (not age) are a little lower then my new ones ,but I still raise the price on them every year.New customers pay the going rate of the current season.