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Old 11-20-2014, 11:03 AM
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MOturkey MOturkey is offline
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Pricing in 2015?

Generally speaking, my strategy on existing accounts that are on the lower end of the profitability scale has been to increase prices some every couple of years until they get to where I think they need to be. I have a handful that I was considering bumping up a bit next spring, but if gasoline prices remain depressed into the growing season, which I believe is the forecast, I'm a little reluctant to do so.

I know fuel cost is only a small portion of the equation when it comes to increased business expenses, not to mention personal expenses, but I suspect it is the first thing most customers would focus on. I'm just curious what others are planning on doing?
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Old 11-20-2014, 11:27 AM
Kawizx62003 Kawizx62003 is online now
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I will be keeping my prices the same. I will plan to steadily increase prices on a set schedule, I think. Forget the fuel and all the other stuff, it's called inflation. If you don't raise you prices on a regular basis, you are losing money due to inflation. I plan on small, regular increases as opposed to infrequent big jumps.

Then again what the heck do I know, Im just a newbie.
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Old 11-20-2014, 11:28 AM
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LandFakers LandFakers is online now
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Quote:
Originally Posted by MOturkey View Post
Generally speaking, my strategy on existing accounts that are on the lower end of the profitability scale has been to increase prices some every couple of years until they get to where I think they need to be. I have a handful that I was considering bumping up a bit next spring, but if gasoline prices remain depressed into the growing season, which I believe is the forecast, I'm a little reluctant to do so.

I know fuel cost is only a small portion of the equation when it comes to increased business expenses, not to mention personal expenses, but I suspect it is the first thing most customers would focus on. I'm just curious what others are planning on doing?
If you need to increase prices then go ahead and do so I would say. While you are right in that customers relate raising prices to the only real expense they can see in our business, which is fuel costs, but that doesn't mean other things aren't going up. I went up on a few people this last season, and gas was less this year than last. They didn't object or question anything luckily.
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Old 11-20-2014, 12:16 PM
Ridin' Green Ridin' Green is offline
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I wouldn't lower or forgo price increases due to what gas is now, or may be then. You can bet your butt that food and most other items that went way up due to increased fuel costs won't ever come back down, for you or your clients, so pricing for mowing shouldn't either. Insurance along with a lot of other things is, and always will, continue to rise.
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Old 11-20-2014, 02:30 PM
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grassmonkey0311 grassmonkey0311 is offline
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I wouldn't lower or forgo price increases due to what gas is now, or may be then. You can bet your butt that food and most other items that went way up due to increased fuel costs won't ever come back down, for you or your clients, so pricing for mowing shouldn't either. Insurance along with a lot of other things is, and always will, continue to rise.
I agree. I'll be keeping my prices the same.
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Old 11-20-2014, 04:55 PM
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Cedar Lawn Care Cedar Lawn Care is offline
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I timed how long each of my properties took this year. Based off of this I know where people are on the profitability scale. This year I only underbid 1 property. I was way off though. I bid 42 and it should be 60. Only 14k of grass buts tons of edging, trimming and blowing. Besides the 1 property the rest will remain the same. I plan to raise prices 5% roughly every 3 years.
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