2011 pricing

Discussion in 'Pesticide & Herbicide Application' started by jbturf, Dec 13, 2010.

  1. jbturf

    jbturf LawnSite Bronze Member
    Posts: 1,411

    hey guys, just seeing if anyones decided
    too keep there current prices
    or increase/decrease for next year?

    my last increase was in 2009 at roughly 2-3%

    looking ahead, its seems material costs are already on
    the rise and will be at least for the start of the season
    for most
    this will perhaps be the biggest expense factor in my consideration,
    but i think i have increased my price enough over the past few years
    to still be comfortable with a minor increase in materials

    suprisingly enough- i saw a 10% growth in gross sales this year
    with no xtra help, and lower total expenses to boot

    so i am leaning towards no increase for 2011,
    opinions?
     
  2. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    it really is depending on your unique situation, but we are not raising prices as we also raised them in 09 and since then prices of materials have gone down and have not reached the point to where they were then for us so profit is the same really.

    that and we keep finding ways to save time or money on materials ingeneral to help keep prices down and more competitive.
     
  3. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,041

    If I do a price increase it will not be across the board.

    Thinking about raising my smaller lawns (under 10 k) by 5%.

    I am not going to raise my larger lawns at this time. If I did it would only be a couple %.
     
  4. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,866

    Keeping current customer's prices same as 2010, although I know I will take a small % hit by doing so with gas prices likely going up vs 2010 and inputs esp. fert going up.

    However, I am in the growth stage big time and expect to nearly double my cust. base each year. New customers get 'current' pricing based on current market conditions. Old customers will get bumped up every 2-3 years or so in small increments.
     
  5. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    i have found that many other companies are raising prices on at least fert apps.

    it will be intersting on how many are going to risk increases in a down economy. this will very likely effect the bidding this winter and spring for sure. we are dedicated to making money, but also finding the ways to get the best prices we can to our clients.

    i hope to make 2011 the biggest year we have ever had, but so much is a variable. so far we have been very lucky i think that we have grown every year and never stood still on growth or even lost. it is getting tougher though with so many newbies and young lco's pricing cheap.
     
  6. hunter140

    hunter140 LawnSite Member
    Posts: 34

    i m not going to raise prices this year for existing customers however new ones will pay a little more because i did not raise prices last year due to the real bad economic conditions in our state. (2or3 highest unempyoyement rate in the country.) RI is hurting but Mass. is doing well.we are lucky to work in both states. we are also trying to grow alot this year.
     
  7. RABBITMAN11

    RABBITMAN11 LawnSite Bronze Member
    Posts: 1,370

    I think you guys are crazy. How can you not raise prices if your costs go up? We will see a.big cost increase this year.
    Posted via Mobile Device
     
  8. jasontimm

    jasontimm LawnSite Senior Member
    from MN
    Posts: 362

    What costs are going way up for you, you already bought your fert for next year at or close to this years price.
     
  9. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,846

    First off, I'd like to thank rcreech for his hand in enabling us to compare/shop around for the most competitive prices regarding cost of products.

    We will NOT raise prices in 2011, yet I think our small lawns are "under-priced". Mainly due to the difficulty & the time it takes to treat these small lawns. All too often, we can treat a 15,000 sq ft lawn in the same time it takes to treat a 3000 sq ft lawn.

    I think most of you know what I mean. My 2 cents.
     
  10. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    Fuel, labor, insurance, rent, equipment, milk, bread, butter, hamburger, hotdogs, etc.
     

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