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Old 12-11-2013, 08:43 PM
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americanlawn americanlawn is offline
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increasing app prices for 2014

We are raising prices by an average of 5% (a little more for smaller lawns).

Say a customer was paying $38, but now it's $41. Would there be enough 'sticker shock' to make them go elsewhere?

Or how 'bout $69 - now $72?

Thanks in advance.
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Old 12-11-2013, 08:52 PM
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it sounds reasonable to me.
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Old 12-11-2013, 09:33 PM
georgialawn88 georgialawn88 is offline
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Larry,
If you do good work which i know you do I don't think it'll be that big of a deal. Inflation effects everyone. Hell milk has doubled lately
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Old 12-11-2013, 10:08 PM
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WestGaPineStraw WestGaPineStraw is offline
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Quote:
Originally Posted by americanlawn View Post
We are raising prices by an average of 5% (a little more for smaller lawns).

Say a customer was paying $38, but now it's $41. Would there be enough 'sticker shock' to make them go elsewhere?

Or how 'bout $69 - now $72?

Thanks in advance.
We are going up a min of $5 per app here some are up $15 an app. Min charge for us has increased to $55, don't like it go back to Tg
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Old 12-12-2013, 12:13 AM
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DA Quality Lawn & YS DA Quality Lawn & YS is offline
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Larry - those should be good. Just don't raise prices consecutive years unless you don't like the customer (PITA factor).

I review all my pricing as well and raise about 1/4 - 1/3 of my customer base when they fall behind costs of doing biz. Gradually taking my min price up to $50, I have found those 3k sq ft lawns with gates are the biggest PITA lawns of them all.
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Old 12-12-2013, 08:31 AM
jbturf jbturf is offline
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So what r u guys seeing up/down for business costs?

I've seen so far insurance is up at least 5%, materials seem flat for now , fuel is down in 13 vs 12, printing / office products all seem to be up5-10%, taxes well I seem to pay more and more each year and I'm not expecting any stimulus checks this year lol, id average all utilities and say 0-5% increase
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Old 12-12-2013, 04:08 PM
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DA Quality Lawn & YS DA Quality Lawn & YS is offline
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Originally Posted by jbturf View Post
So what r u guys seeing up/down for business costs?

I've seen so far insurance is up at least 5%, materials seem flat for now , fuel is down in 13 vs 12, printing / office products all seem to be up5-10%, taxes well I seem to pay more and more each year and I'm not expecting any stimulus checks this year lol, id average all utilities and say 0-5% increase
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Fert prices are soft right now which is ok. Taxes will NEVER go down. Insurance always creeps up. Gas, well, don't count on that being down too much longer.
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Old 12-12-2013, 02:15 PM
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Quote:
Originally Posted by americanlawn View Post
We are raising prices by an average of 5% (a little more for smaller lawns).

Say a customer was paying $38, but now it's $41. Would there be enough 'sticker shock' to make them go elsewhere?

Or how 'bout $69 - now $72?

Thanks in advance.
I have not raised Prices since 2007 when the economy went South. So I been thinking on raising my Fert & Squirt prices from $ 15.00 a thousand and $ 75.00 minimum per treatment to $ 17.00 a thousand and $ 85.00 minimum per treatment. Here in Florida we treat Year round, so most of our customers are paying 12 times a year. BTW Many of my yards don't make the 5 thousand Sq ft minimum.

My Fire Ant Customers are paying $ 5.00 a thousand / $ 50.00 Minimum. per treatment 6 times a year. It cost me more for gasoline to get to the job than Insecticide to kill Fire Ants. For that reason I market Fire Ant customers hard and heavy. My profit margin on Fire Ants and Inside Pest control is over 90% including overhead.

The Idea is to make money, not give away cheap service to half the Country Like TG/CL. If I charged $ 38 I would have every yard from Miami to Tallahassee. Of course they would get $ 38.00 quality crap also. But rather than travel all over the state, I make a comfortable living, working part time in my own little town. Bigger is not better especially if you are the low baller giving away your work for 38 1/2 Peanuts.

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Old 12-13-2013, 02:54 PM
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rcreech rcreech is online now
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Originally Posted by Ric View Post
I have not raised Prices since 2007 when the economy went South. So I been thinking on raising my Fert & Squirt prices from $ 15.00 a thousand and $ 75.00 minimum per treatment to $ 17.00 a thousand and $ 85.00 minimum per treatment. Here in Florida we treat Year round, so most of our customers are paying 12 times a year. BTW Many of my yards don't make the 5 thousand Sq ft minimum.

My Fire Ant Customers are paying $ 5.00 a thousand / $ 50.00 Minimum. per treatment 6 times a year. It cost me more for gasoline to get to the job than Insecticide to kill Fire Ants. For that reason I market Fire Ant customers hard and heavy. My profit margin on Fire Ants and Inside Pest control is over 90% including overhead.

The Idea is to make money, not give away cheap service to half the Country Like TG/CL. If I charged $ 38 I would have every yard from Miami to Tallahassee. Of course they would get $ 38.00 quality crap also. But rather than travel all over the state, I make a comfortable living, working part time in my own little town. Bigger is not better especially if you are the low baller giving away your work for 38 1/2 Peanuts.

.
Ric

To me it's not about price...it's about profit margin

I may b able to charge $50 and have a higher profit margin then someone that charges $60 for the same exact job.

It comes down to cost and the area you live in
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Old 12-13-2013, 04:21 PM
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Ric Ric is offline
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Quote:
Originally Posted by Ric View Post
I have not raised Prices since 2007 when the economy went South. So I been thinking on raising my Fert & Squirt prices from $ 15.00 a thousand and $ 75.00 minimum per treatment to $ 17.00 a thousand and $ 85.00 minimum per treatment. Here in Florida we treat Year round, so most of our customers are paying 12 times a year. BTW Many of my yards don't make the 5 thousand Sq ft minimum.

My Fire Ant Customers are paying $ 5.00 a thousand / $ 50.00 Minimum. per treatment 6 times a year. It cost me more for gasoline to get to the job than Insecticide to kill Fire Ants. For that reason I market Fire Ant customers hard and heavy. My profit margin on Fire Ants and Inside Pest control is over 90% including overhead.

The Idea is to make money, not give away cheap service to half the Country Like TG/CL. If I charged $ 38 I would have every yard from Miami to Tallahassee. Of course they would get $ 38.00 quality crap also. But rather than travel all over the state, I make a comfortable living, working part time in my own little town. Bigger is not better especially if you are the low baller giving away your work for 38 1/2 Peanuts.

.
Quote:
Originally Posted by rcreech View Post
Ric

To me it's not about price...it's about profit margin

I may b able to charge $50 and have a higher profit margin then someone that charges $60 for the same exact job.

It comes down to cost and the area you live in
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rcreech

I believe "The Idea is to make money" is the same thing as Profit margin. I am a one man band and work out of my House. My equipment has been paid for a long time go. My Overhead can't get much cheaper unless I were homeless living on a public park bench. BTW I only work part time and make way better than the national average income.

Everyone thinks being big means making Money. IMHO a one man band with a part time helper is the most effective method of running a Fert & Squirt business. The Bigger you get, the less control and poorer the quality of your work. Because I have first hand control of my quality, I don't have to advertise. I am not looking for L&O customers, Because those upscale Customers are looking for me.

Multiply employees, traveling hundreds of miles, charging peanuts is very poor business practice. In fact Service Master just made TG/CL a separate company so they wouldn't continue to drag down Service Master Stock Price/Profit Margin. IMHO anyone following the TG/CL Big Box business model is a Pure Fool. I don't need to drive from Timbuktu to East Jesus to sell my work. Start to finish my Route isn't 20 miles from one end to the other. I don't need to travel hundreds of miles or pay for TV advertisement to make a nice living.

End Game:: One other consideration in having a smaller one man business is the selling price. I can demand a Higher price per account and have more potential buyers because of the bottom line. I think a lot of people fail to understand the End Game of a business. If I had 3,000 account my potential business buyers would be very limited. From past experience of selling accounts, the Big Boys aren't going to pay top dollar for big routes. My smaller high profit route can demand the highest prices per account and have a multitude of buyers. Not only can I get a Better price per account, But I can sell it faster. Time is money and a quick sale with multiply buyers is a nice position to be in. Sorry but like my first statement ""The Idea is to Make Money"". BUT, Why do it the hard way. The more employees and customers, THE MORE HEADACHES. WHY???? Life is too short.

.
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"TG doesn't give a rats ass about being "Responsible" as long as sales/production quotas are met. That's it in a nutshell. A recipe for disaster IMO." Ted Putnam 2/28/14

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"As Americans you have the right to be stupid." John Kerry

"Life is tough, but it's tougher when you're stupid.” John Wayne.
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