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  #41  
Old 01-01-2003, 12:16 PM
Kent Lawns Kent Lawns is offline
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Join Date: Jan 2000
Location: Midwest
Posts: 870
Quote:
Originally posted by KenH
Please do not take this reply as being conceited, because it is not.
am friends with all my customers, and am mildly expensive. Im beginning to think customer realtions is the most important aspect going on here.
You're right.

But:

1.) You've gotta start somewhere.
2.) A business as small as yours shouldn't need to advertise.
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  #42  
Old 01-01-2003, 12:20 PM
Andrew S Andrew S is offline
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Location: Perth Western Australia
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Hi Clay,

I try to increase prices regularly,leaving it a few years makes it harder to catch up.

No I don't increase new customers ,I try to price the job correctly before I start.

However if I have customers that are difficult to deal with I will increase their prices by a much greater percentage.That way it is their decison to cancel my service rather than argue with them,or if they keep me on I am being paid very well for putting up with them
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  #43  
Old 01-01-2003, 12:26 PM
Clay Clay is offline
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Join Date: Dec 2002
Location: Brookings, OR
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"However if I have customers that are difficult to deal with I will increase their prices by a much greater percentage.That way it is their decison to cancel my service rather than argue with them,or if they keep me on I am being paid very well for putting up with them"

Thanks Andrew... Man, do I hear that one!!! lol...

But for the average customer, how do you determine the amount to raise? Cost of living index? Or maybe a set percentage each year? Do they know about this and expect it annually?

Thanks, Clay
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  #44  
Old 01-01-2003, 12:27 PM
Andrew S Andrew S is offline
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Join Date: Jun 2001
Location: Perth Western Australia
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As an afterthought here is my increase notice:

TO ALL CLIENTS

Due to ever increasing operating costs it is now necessary to adjust the charge for your lawnmowing services.

In future your regular price will be $....... per cut

Trusting you understand that prices must periodically reviewed
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  #45  
Old 01-01-2003, 12:30 PM
Andrew S Andrew S is offline
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Join Date: Jun 2001
Location: Perth Western Australia
Posts: 150
I think the percentage will vary depending on where you work but I try to go for 5% to 6%
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  #46  
Old 01-01-2003, 12:37 PM
Clay Clay is offline
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Join Date: Dec 2002
Location: Brookings, OR
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Andrew,

Man, 5 to 6% annually would sure make for some nice accounts in about 10 years!!! :-)

Have you been able to retain multi-year accounts with this strategy? It would seem that you would price yourself out of business after a few years??? I was thinking more like 3 to 3.5% annually... but I sure hope you are right!!! lol...


Clay
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  #47  
Old 01-01-2003, 12:47 PM
Andrew S Andrew S is offline
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Join Date: Jun 2001
Location: Perth Western Australia
Posts: 150
Most of my accounts are over 5 years old but this is why I have to advertise to replace the customers looking at price only.

But why would I keep a job that is the same price in 5 to 10 years time,these same people will go for a cheaper price when you do increase your price in 5 years time.you might as well replace them with a better paying job now.

Also when you sell work in your outer areas if the pricing is good , it will be easier to sell, if your pricing is down and the purchaser is smart he will not buy your work

one thing that I have'nt touched on is that we always turn up or follow up with a phone call if we will be late.provide the good service-charge the right price
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