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Old 03-26-2002, 03:03 PM
Mrs. Landscaper Mrs. Landscaper is offline
LawnSite Member
Join Date: Feb 2002
Location: PA
Posts: 6
Increasing Fees

What are your experiences in increasing your fees to your regular customers...i.e. your hourly rate. Do you notify all regular customers at beginning of the you send a letter or note... or just show increase on first bill....??? What reactions have you had. On average, how often have you increased fees, yearly... every so many years, etc.??
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Old 03-26-2002, 03:14 PM
Ground Master Ground Master is offline
LawnSite Senior Member
Join Date: Feb 2002
Location: colorado springs
Posts: 505
I send each customer a letter in spring that shows prices for the upcoming season. I review each customers account and raise prices on just about half (give or take) each year.

I don't know off hand if i've lost any by raising prices, but I'm sure it has happened, i.e. they don't call and tell me that I'm fired.
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Old 03-26-2002, 03:42 PM
Lawn-Scapes's Avatar
Lawn-Scapes Lawn-Scapes is offline
LawnSite Silver Member
Join Date: May 2001
Location: Maryland
Posts: 2,813
I haven't had a problem raising prices (small increments) for the last couple of seasons. Could be my prices were too low or my work is outstanding and they do not mind paying a little extra. Maybe both?

I try not to raise prices during the season..

Here's a little something on raising prices.. may or may not be useful..

establishing roots in the community...
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Old 03-26-2002, 03:42 PM
LawnLad LawnLad is offline
LawnSite Senior Member
Join Date: Jan 2002
Location: Cleveland, Ohio
Posts: 738
We send a letter each spring with any contract updates, much like an addendum to their original contract/agreement.

We list our labor rates for the upcoming year. Our rates have gone up from $23 to $25 to $28 to $30 for general labor over the last 8 years. Different people respond differently to your prices. In part depending on their motivation for buying. Those that bought from you at a lower price point may not find the value with higher prices. Be prepared to loose a few because of it. But I belive most customers generally except that prices will increase over time.
Lawn Lad, Inc.
Cleveland, Ohio
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Old 03-26-2002, 08:07 PM
HBFOXJr HBFOXJr is offline
LawnSite Bronze Member
Join Date: Jul 2001
Location: Southern New Jersey
Posts: 1,706
The only ones that get notified are those maintenance jobs under contract for full service. They just get the new annual price.

Anyone that buys services and materials on a pay as you go basis just get billed the new rate. I keep per cuts and apps the same for the season. Anything else I change when I feel like it.

Don't worry about reaction unless you bang'em hard. It's like we're worried and almost none of them blink an eye. Prices change at the grocery store, gas station, car dealership, insurance, interest rates everyday. It's no big deal. Be like NIKE, just do it.
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