Register free!
Search
 
     

Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 12-03-2012, 10:41 AM
DA Quality Lawn & YS's Avatar
DA Quality Lawn & YS DA Quality Lawn & YS is offline
LawnSite Fanatic
 
Join Date: Sep 2007
Location: Rochester, MN
Posts: 7,781
Sending out 2013 renewals

I am working up my 2013 app renewals as I speak. How many of you guys are doing the same? How are you handling price increases? For gas/fert etc?

I have increased the price on about 1/3 of my customers, those who's price was perhaps a bit low to start with, or have fallen behind the costs of doing business. 10% increase is about average. The new customers I got in 2012 will generally not see an increase until at least a year from now. Otherwise I feel I would risk losing them.

Thoughts?
__________________
7x14 Stealth SE Enclosed with 48" side ramp
08 Toro Z400 48" deck, 21HP Kaw with EZ Vac twin bag
09 Exmark Turf Tracer HP 36"
21" Toro SR4 Super Recycler
Stihl KM90 Kombi w/ straight shaft trimmer & tiller heads
Husqvarna 125B Blower
PG Magnum
Turfco XT5 Aerator
Turfco LS-22 Overseeder

I can do all things through Him who gives me strength.
Philippians 4:13
Reply With Quote
  #2  
Old 12-03-2012, 05:36 PM
grassmasterswilson grassmasterswilson is online now
LawnSite Gold Member
 
Join Date: Mar 2007
Location: nc
Posts: 3,177
I will try to send mine out the 1st of Janurary. I will do a direct mailer mid jan. Our 1st round starts the middle of feburary.

I will selectively raise some prices on lawns that don't make good margins or aggravating. It all depends on how much work I do for them. I mow many of my application accounts also.
__________________
GrassMasters, LLC
Wilson, NC
www.grassmasterswilson.com
Reply With Quote
  #3  
Old 12-03-2012, 05:56 PM
jfoxtrot9's Avatar
jfoxtrot9 jfoxtrot9 is offline
LawnSite Senior Member
 
Join Date: Jul 2009
Location: Northeast Ohio
Posts: 268
I have typically sent out renewals in Feb/early March. I guess, I enjoy the initial time off when I finish up a season as well as I figure my customers get a break from their lawn expense too! Not saying that my way is right though. Seems I see competition sending out their info sooner very year. Of course I don't worry much about competition at least concerning existing customers.

I typically do price increases just like you. Very rarely on a new customer for the same reason. Same as increases to the older ones that have fallen behind concerning costs.

How do you do renewals? I send out letters to every customer, but it states that renewal is automatic unless I am contacted and told otherwise. One thing that I have never done but I see some bigger companies do is push to upsell services right from spring as a total package. For example aeration. I have always offered that when the time comes in the year. I am thinking about somehow adding that in with a discount if the customer commits in the spring.

Or another idea, that I suspect others do is, renew the entire service the same as last year. For example, if last years service was 5 or 6 apps, grub control and aeration, that whole program is automatically renewed as performed the prior year. Less nagging the customer and automatic service to them and business for the company.

Thoughts?
Reply With Quote
  #4  
Old 12-03-2012, 08:45 PM
RigglePLC's Avatar
RigglePLC RigglePLC is online now
LawnSite Fanatic
 
Join Date: Jul 2006
Location: Grand Rapids MI
Posts: 9,166
I like Foxtrot's plan. I always increased prices to all customers the same. Computer does the calculations...no sweat. Add a few cents to base fee. Add a few cent per thousand sqft. Automatic renewal on their same program and number of aps.
If not included, grub control available at extra cost, (quoted) just call.
Reply With Quote
  #5  
Old 12-04-2012, 12:39 AM
DA Quality Lawn & YS's Avatar
DA Quality Lawn & YS DA Quality Lawn & YS is offline
LawnSite Fanatic
 
Join Date: Sep 2007
Location: Rochester, MN
Posts: 7,781
Quote:
Originally Posted by jfoxtrot9 View Post
I have typically sent out renewals in Feb/early March. I guess, I enjoy the initial time off when I finish up a season as well as I figure my customers get a break from their lawn expense too! Not saying that my way is right though. Seems I see competition sending out their info sooner very year. Of course I don't worry much about competition at least concerning existing customers.

I typically do price increases just like you. Very rarely on a new customer for the same reason. Same as increases to the older ones that have fallen behind concerning costs.

How do you do renewals? I send out letters to every customer, but it states that renewal is automatic unless I am contacted and told otherwise. One thing that I have never done but I see some bigger companies do is push to upsell services right from spring as a total package. For example aeration. I have always offered that when the time comes in the year. I am thinking about somehow adding that in with a discount if the customer commits in the spring.

Or another idea, that I suspect others do is, renew the entire service the same as last year. For example, if last years service was 5 or 6 apps, grub control and aeration, that whole program is automatically renewed as performed the prior year. Less nagging the customer and automatic service to them and business for the company.

Thoughts?
I auto renew every customer I have that had two or more apps the previous season. They get renewed with exactly the same program they had the last season. I also list one upgrade option for those customers who's lawn could really afford me on it a little more throughout the season.

As for aeration, I incorporate it into my programs automatically. You buy a season program, you bought aeration too. It is that important, esp here with the muck clay soils.

I don't send out prepay notices until Feb or so. The letters I send now simply tell customers they are auto renewed and they MUST call or e-mail me to cancel or I AM showing up next year.
__________________
7x14 Stealth SE Enclosed with 48" side ramp
08 Toro Z400 48" deck, 21HP Kaw with EZ Vac twin bag
09 Exmark Turf Tracer HP 36"
21" Toro SR4 Super Recycler
Stihl KM90 Kombi w/ straight shaft trimmer & tiller heads
Husqvarna 125B Blower
PG Magnum
Turfco XT5 Aerator
Turfco LS-22 Overseeder

I can do all things through Him who gives me strength.
Philippians 4:13
Reply With Quote
  #6  
Old 12-04-2012, 04:12 PM
fireman gus fireman gus is offline
LawnSite Senior Member
 
Join Date: Feb 2005
Location: Enid, Oklahoma
Posts: 512
All of our clients are auto-renewal. If we have to raise price for whatever reason we contact the clients with post cards stating the cost increase and the option to discontinue services if they don' t like the new price.
Reply With Quote
  #7  
Old 12-06-2012, 10:06 AM
garydale garydale is offline
LawnSite Senior Member
 
Join Date: Jan 2002
Location: Mount Airy, Maryland EST
Posts: 812
Prepays

We mailed our 2013 prepay letters to arrive on Dec 1,
Did not raise price per treatment but, dropped our 10% prepay discount to 7%.

We want the cash for early order purchases and to lockup the clients before fert. & squirts lowball us.

Grubs are back big time in Maryland so we are adding preventative treatments (Merit)

We now have mandatory soil testing so selling lime, Potash appl.
__________________
gary crutchfield
www.lawnaideplus.com
po box 630
mount airy, md 21771-0630
Reply With Quote
  #8  
Old 12-06-2012, 11:01 AM
Cadzilla Cadzilla is offline
LawnSite Senior Member
 
Join Date: Feb 2012
Posts: 658
Auto Renewal here.

I send out a cover letter with greetings, thank you's, updates, and reminders of cool extra services like the insect controls, aeration, seeding and tree/shrub care. I also remind them of referral deals that are in place or any other teasers.

I include a printed copy of their scheduled services for this upcoming season, which is always the same as last season unless discussed prior.

I include the pre payment deal (5%) and include an envelope.

I suck at raising prices. Honestly? I don't hardly ever do it. Fortunately for me I charge plenty upfront and am not low bidding too many jobs.

I do however stick to a pretty tight pricing structure that goes up with the times, or down as my market prices adjust.

I never mail anything out till mid February. I am in Michigan.
Reply With Quote
  #9  
Old 12-06-2012, 05:36 PM
RigglePLC's Avatar
RigglePLC RigglePLC is online now
LawnSite Fanatic
 
Join Date: Jul 2006
Location: Grand Rapids MI
Posts: 9,166
Eventually, auto-renew has an important advantage.
When you retire or sell your company--your customer list is a lot more valuable. Without auto-renewal...your clients are just a list...not worth much.
Reply With Quote
  #10  
Old 12-06-2012, 08:00 PM
McFarland_Lawn_Care's Avatar
McFarland_Lawn_Care McFarland_Lawn_Care is offline
LawnSite Bronze Member
 
Join Date: Jan 2007
Location: Sedgwick, Maine
Posts: 1,089
Riggle - Great point...I love this idea. I'm going to do that this coming year, I'll send out the agreements and have a statement saying they will auto-renew from year to year until we hear otherwise from them. This should help a lot - so many people are busy and procrastinate and we miss out on some work because they don't get it back to us in time...

Love this idea...thanks!!!

Jason
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 04:07 PM.

Page generated in 0.08383 seconds with 7 queries