Annual price hikes

[Ocutter]

For those of you that have raised prices from yr to yr and kept customers, I would like to know the $ percent raised. Forget about gas prices and late payers. I have that worked out already. I was thinking 2 percent across the board. Too low or just right?

[greenlawncare]

Across the board?

Why not just figure out what profit margin you want and adjust the prices accordingly? That way you either cut out the losers or make them non-losers, and you won't overcharge you winners and the lose their business as a consequence.

You do keep track of hours spent on lawns right?

[Twotoros]

I agree with greenlawn. I usually go about 3% a year. However if a lawn is priced well and the owner is a good payer and good people , I might leave it alone one season. On the other side of the coin if it is a dog , takes more time than like lawns or is a pain in the rear account I raise it to a price 10-20% above a simular lawn .
I read in a trade mag that it is wise to lose your bottom 10% every year.

[jaclawn]

Less than 5% should not cause too many problems. 10% will raise a few eyebrows, and over 10% will result in some cancellations. This is all assuming that your pricing is already where it should be.

I made the mistake of not raising every year. Some went too long without a price increase. EVERY lawn gets raised every year now. Granted, not all of them get raised 10%, but they still get raised.

The only exception is a customer that is picked up after Aug. 1. They get the higher price quoted to them, and no price increase the first full season.