PDA

View Full Version : raisin the price


launboy
03-07-2004, 12:58 AM
say i started out at a fairly low hourly rate, because i thought if i charged what the pros did people would get spooked by me being new and not worth as much as the big guys. Then i raised the price the following year. thats for hourly rate for cleanups and landscape work. would it kill me/ how shouldi go about raising them

tiedeman
03-07-2004, 01:01 AM
Look over your overhead and does it justify you raising them again? You may scare off some customers, but if it need to be done then it needs to be done. Perhaps write a letter to customers informing them of the new prices and the reasons behind the price raise. Heck I have raised my hourly rate $13 in the past 3 years.

bastalker
03-07-2004, 01:35 AM
All depends on how loyal your customers are to you. If they like your work, like you, it shoudn't be a problem...

Then it depends on how low you actually started out. If you were just wanting to raise things a couple of dollars, an the customers like you, it shouldn't be a problem.

If you were just doing work for them, an never developed a repore with your customers, than it would be a big problem...

GarPA
03-07-2004, 03:57 AM
we dont ever share the billable hourly rate with the customer. We price all services, by the job, not hourly.If its a service like cleanup, we give them a low to high, range of price for the job.

As far as raising the price for mowing service from one year to the next, in the renewal agreement we just list the new price.

Just my opinion, but the bottom line is, the more you try to "justify" your increase, the more it looks like you are apologizing for the price hike. And at the end of the day, the bottom line is whether the customer thinks that your service is worth what you are charging. Nearly every service/product I buy for personal or business use, goes up in price every year and I dont get any longwinded explanation for ANY of those increases...and frankly even if they did, all that matters to me as the consumer, is whether I'm satisfied with what I'm getting for what I'm paying.

And most customers are reasonble, about reasonable price increases.

launboy
03-07-2004, 11:43 AM
if you don't list your hourly, don't you get people asking how much you are an hour...

tiedeman
03-07-2004, 11:56 AM
some people list the hourly, while others just list the job price.

swim
03-07-2004, 01:19 PM
When I started I did do some work by the hour, but so-n-so always thought that it was to much. They worked for someone else and never understand the cost of doing business just that they thought I was making all that money perhour. It did cause problems so I try to stay away from it if I can. As far as raising the price I try to stay away from as well it as much as possible. It tends to run people off. I do consentrate on making myself more productive. Better equipment that is more productive and charge accordingly for new customers as I add them.

metro-hp_48
03-07-2004, 01:52 PM
Some people "freak out" when/if they hear 60/hr. Considering what they worked for 30 years ago.

Pecker
03-07-2004, 02:33 PM
I won't tell customers what I charge per hour because all they hear is the number and compare it to their own wages, which will get you run off before you say another word. Besides, for them to understand why I charge what I do, I'd have to go through EVERYTHING (i.e. break down what it costs per hour for me to run each piece of equipment, truck, trailer, insurance, repairs, gas, oil, . . . . . . and the list could go on for days, and then have to justify why I feel I deserve the money I work for - I think not.) Nobody really cares what it takes you to service their lawn and their not going to give you their time to sit down and explain figures, not that I'd do it any way. They only care how much it will cost them. And, frankly, my business is my business and nobody else needs to know it. Therefore, customers get a price per job.

GarPA
03-08-2004, 05:07 AM
******...you are right on about the reasons for not giving them an hourly rate. And they couldn't care less and frankly its none of their business, what components go into the hourly billing rate

lawnranger44
03-08-2004, 08:22 AM
We raised prices per mow and we're doing it again this spring. We raised it $2 a cut for each customer. Didn't hear any complaining at all. Our justification was "an increase in operating expenses." No long winded explanation is needed