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Old 03-05-2000, 02:09 PM
crew crew is offline
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Join Date: Jan 2000
Location: St. Paul,MN.
Posts: 163
I'm beginning my second year on a route that is geographically very compact.I know my prices are a little low and i intend to raise them. However i'm not sure how much of a premium to place on keeping the route i better served ditching crappy customers who will make decisions based solely on price ,or should i be willing to travel to the jobs that might pay more.I know of guys who put on lots of miles and im not sure how to weight that in the equation.Furthermore i get into this thing of raising prices,say25%,loosing 24% of my cistomers and ultimatly being ahead of the game.Is there a threshold in increasing pricing that freak ,em out and sends them running?
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Old 03-05-2000, 02:54 PM
GroundKprs GroundKprs is offline
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Join Date: Dec 1999
Location: South Bend, IN
Posts: 1,969
You should be charging each client as if he were the only one in the area. Compact area then just enhances profit. If you have 5 on one block, do you raise the four $2 if one drops out? Do you double the last one, if four drop out? Plan your pricing strategy for the long term.<p>----------<br>Jim<br>North central Indiana
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Old 03-05-2000, 03:12 PM
Nilsson Associates Nilsson Associates is offline
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Join Date: Dec 1999
Location: Connecticut
Posts: 243
What about considering that the closest competition would have to travel let's say 15 minutes to reach any of your customers. Like Jim said, being close is to your advantage has nothing to do with price ... just enhances profit. Try figuring your returns per hour for each customer and compare them at prices for new work (same type) if pricing now. Total hours (everything) for year divided into total billings for each customer gives you a comparable to help see it. Increasing prices depends on &quot;where you are with prices&quot;<br>even if you're way below the competition the customers still may resent a big increase.<p>Phil Nilsson
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