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View Poll Results: When to notify customers of a price increase.
End of season 5 13.51%
During the off season. 7 18.92%
Just prior to mowing season. 21 56.76%
None. Just increase the first invoice. 4 10.81%
Voters: 37. You may not vote on this poll

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  #1  
Old 10-22-2010, 12:32 AM
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MOturkey MOturkey is offline
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Announcing Price Increases

I'm thinking more of price increases to individual accounts, rather than across the board here, but I suppose the answer might be the same for either. I have about 6 accounts that consistently fall below what I consider the lower end of what I need to make hourly. I really haven't had much experience raising prices, because, for the most part, I've been able to maintain my targeted earnings with very minimal price increases the past few years. The accounts in question are accounts I obtained from another LCO this year. I honored his prices for the remainder of the season, but they really need to be raised next year, and I'm waffling on when to broach the subject with the clients.

I'd appreciate input from the rest of you guys. Thanks.
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  #2  
Old 10-22-2010, 12:40 AM
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Exact Rototilling Exact Rototilling is online now
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Quote:
Originally Posted by MOturkey View Post
I'm thinking more of price increases to individual accounts, rather than across the board here, but I suppose the answer might be the same for either. I have about 6 accounts that consistently fall below what I consider the lower end of what I need to make hourly. I really haven't had much experience raising prices, because, for the most part, I've been able to maintain my targeted earnings with very minimal price increases the past few years. The accounts in question are accounts I obtained from another LCO this year. I honored his prices for the remainder of the season, but they really need to be raised next year, and I'm waffling on when to broach the subject with the clients.

I'd appreciate input from the rest of you guys. Thanks.
A few of my accounts will get rate increase next Spring. If they bail early in the season or cancel I can replace them with out too much trouble.
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  #3  
Old 10-22-2010, 02:13 AM
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J & D Greens J & D Greens is offline
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Quote:
Originally Posted by Exact Rototilling View Post
A few of my accounts will get rate increase next Spring. If they bail early in the season or cancel I can replace them with out too much trouble.
Agree,

I always send out a renewal notices to all my customers and it asks for a RSVP, It is simple and I use it every year. Actually have two one for increases (with a brief explanation why the increase) and one stating their price will be the same. These are sent out by the first of February or so. This gives my customers a fare amount of time to decide and get back to me. If I don't hear from them then I call them two weeks before the season begins to confirm work. I don't want to leave anything up in the air.
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  #4  
Old 10-22-2010, 02:34 AM
topsites topsites is offline
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Nope, no notice, and it's not to be mean but it's because when I feel an increase is necessary I just do it,
I'm not here to play fiddle fart with these folks and if I give notice it may seem like I don't mess nobody around
but the increase is because it is and nothing else anyway.

Because either way some will bail but at least this way I get a check or two at the higher rate.
Now that's just me.
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  #5  
Old 10-22-2010, 03:04 AM
18lmslcsr 18lmslcsr is offline
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This winter there will be no price increase. As was the case for the lawn care season. SE WI is in one the worst economic down turns at this moment. We have well into the 14 - 17% unemployment reported....(non-reported is probably closer to 20+%) and the economy and jobs are in turmoil. It is truly a gift the business survives week to week...month to month.

C.
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  #6  
Old 10-22-2010, 03:27 AM
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Richard Martin Richard Martin is offline
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I like to give a customer plenty of advance notice. My arrangements tend to be "I like you and you like me" deals. Regardless of the reason a customer leaves I NEVER want them to leave because they're mad at me for one reason or another. Popping a price increase at the last second is a really good way to make them mad. Imagine how mad you'd be if your electric company just started charging 20% more with no advance notice.
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  #7  
Old 10-22-2010, 09:26 AM
mbrew mbrew is offline
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Join Date: Mar 2010
Location: Ft. Worth TX
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Quote:
Originally Posted by J & D Greens View Post
Agree,

I always send out a renewal notices to all my customers and it asks for a RSVP, It is simple and I use it every year. Actually have two one for increases (with a brief explanation why the increase) and one stating their price will be the same. These are sent out by the first of February or so. This gives my customers a fare amount of time to decide and get back to me. If I don't hear from them then I call them two weeks before the season begins to confirm work. I don't want to leave anything up in the air.
This is the way I plan to work it. Like MOTurky, I have some accounts that I bid early in the year that I just haven't been able to get the level of productivity I desire, so I'll try to bump them up a bit. I'm also going to shrink my operating area next year so I'll lose a couple of customers from that. I intend to tell them that on their final billing this year so they know up front they'll need to get another guy.
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  #8  
Old 10-27-2010, 05:20 PM
rhalverson rhalverson is offline
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Join Date: Mar 2007
Location: Milwaukee Wisconsin
Posts: 43
Do your customer the honor of being up front with them. They will appreciate it and respect you for your professionalism. Send this letter "Dear Customer, Thank you for your business in 2010. I look forward to working with you again in 2011. As a valued customer I wanted to let you know as soon as possible that we are going to have a modest cost increase in 2011..."
Then quote the new price. There's always one or two who will squeak a little but they are probably the ones you'll miss the least.
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  #9  
Old 10-27-2010, 06:38 PM
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scotts lawn care scotts lawn care is offline
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Location: Frederic WI
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Quote:
Originally Posted by 18lmslcsr View Post
This winter there will be no price increase. As was the case for the lawn care season. SE WI is in one the worst economic down turns at this moment. We have well into the 14 - 17% unemployment reported....(non-reported is probably closer to 20+%) and the economy and jobs are in turmoil. It is truly a gift the business survives week to week...month to month.
Yeah I hear ya. Same up hear in nw wi. I won't be doing any price increase either. Happy to get the rain this year,and have work.
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  #10  
Old 10-27-2010, 10:15 PM
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C4chris70 C4chris70 is offline
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Quote:
Originally Posted by topsites View Post
Nope, no notice, and it's not to be mean but it's because when I feel an increase is necessary I just do it,
I'm not here to play fiddle fart with these folks and if I give notice it may seem like I don't mess nobody around
but the increase is because it is and nothing else anyway.

Because either way some will bail but at least this way I get a check or two at the higher rate.
Now that's just me.
That is bad business in my opinion. I always give at least a 30 day notice for all price increases.
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