Annual price hikes

Discussion in 'Lawn Mowing' started by Ocutter, Sep 17, 2000.

  1. Ocutter

    Ocutter LawnSite Senior Member
    Posts: 314

    For those of you that have raised prices from yr to yr and kept customers, I would like to know the $ percent raised. Forget about gas prices and late payers. I have that worked out already. I was thinking 2 percent across the board. Too low or just right?
     
  2. greenlawncare

    greenlawncare LawnSite Member
    Posts: 105

    Across the board?

    Why not just figure out what profit margin you want and adjust the prices accordingly? That way you either cut out the losers or make them non-losers, and you won't overcharge you winners and the lose their business as a consequence.

    You do keep track of hours spent on lawns right?

     
  3. Twotoros

    Twotoros LawnSite Senior Member
    Posts: 494

    I agree with greenlawn. I usually go about 3% a year. However if a lawn is priced well and the owner is a good payer and good people , I might leave it alone one season. On the other side of the coin if it is a dog , takes more time than like lawns or is a pain in the rear account I raise it to a price 10-20% above a simular lawn .
    I read in a trade mag that it is wise to lose your bottom 10% every year.
     
  4. jaclawn

    jaclawn LawnSite Senior Member
    Posts: 490

    Less than 5% should not cause too many problems. 10% will raise a few eyebrows, and over 10% will result in some cancellations. This is all assuming that your pricing is already where it should be.

    I made the mistake of not raising every year. Some went too long without a price increase. EVERY lawn gets raised every year now. Granted, not all of them get raised 10%, but they still get raised.

    The only exception is a customer that is picked up after Aug. 1. They get the higher price quoted to them, and no price increase the first full season.
     

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