Anybody raising prices?

Discussion in 'Business Operations' started by lawnkingforever, Mar 3, 2012.

  1. lawnkingforever

    lawnkingforever LawnSite Bronze Member
    Posts: 1,280

    I just got done with my spring letter that I will be mailing out next week. I decided to raise the price of mowing services pretty much across the board. Most of the increases were $3 while a few were $5. I am also for the first time offering a prepayment option. Option 1 will be a 5% discount with payment for the entire season being received by April 1st. The 2nd option will be a 3% discount, with the customer sending in half by April 1st and the 2nd installment in midseason. Both options are based on 28 mows. Even though I have many longtime customers that are very happy with my service, I anticipate losing a couple of customers over the increase. For some people it it always about the money all the time.
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  2. ringahding

    ringahding LawnSite Senior Member
    Posts: 613

    You almost have to. I have offered existing customers the opportunity to jump on last year's rates, by opting to prepay. Thus far 10% of the customers contacted have responded, but all were made aware of increases and fuel surcharges.
     
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I'm going up by a small amount on about 1/2 of my customers. Just enough to cover gas.
     
  4. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I'm defintely going up on most of my accounts this season. I think I've been too kind to some of my customers, having not raised their prices for a few years. I did raise my labor rates for extras last season but none of my lawn prices. I have a few lawns that are just plain under priced as well, one commercial account in particular that I'm only getting $50 for and should be more like $75. But I do his house too and that lawn is priced where it should be...don't want end up losing them both.
     
  5. Ben Bowen

    Ben Bowen LawnSite Bronze Member
    from PNW
    Posts: 1,051

    I raised most of ours by 5%. A few clients had to go up even more. I lost 3 clients, none very desirable. Everyone else seemed to understand- they see the price of gas.
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  6. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,354

    That was going to be my plan. Prepay to lock in last years rates. Isn't that kind of like holding your client hostage....?


    In all the years I've been on lawnsite I've never seen a thread where a poster said "I raised my rates across the board and lost almost all my clients now I'm broke"....?

    Roughly 40% of my clients are getting increases but I'm prepared to have to replace most of them.
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  7. ALEX'S LANDSCAPING

    ALEX'S LANDSCAPING LawnSite Senior Member
    Posts: 680

    I will be rasing my prices by 5.00 bucks to cover for gas.
    For example:
    A lawn that is $30.00 will become -> $35.00 + 13% tax
     
  8. Five Points

    Five Points LawnSite Member
    Posts: 213

    I'm putting prices up a few bucks per cut on most of them. Also going to try and switch to a contract for six months rather than by the cut. I will give people the option to stay with price per cut cut. but I think this is the way to go. then just up it it abit per yr. any comments?
    Springs not to far now. think I'll be going in two weeks by the look of the forecast.
     
  9. scotts lawn care

    scotts lawn care LawnSite Senior Member
    Posts: 476

    I increased my prices on all my customers last season. I wont be this year.
     
  10. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    You may want to reconsider that PRE PAY.

    at 3% you will be loosing money.


    if you raise your prices 5% then offer a 3% savings your only increasing your revinew by 2%. with fuel increase of expected 50% this summer you are now loosing 48 % of your revinew.

    if your like me I pay 51% taxes by your math you would be at a loss of 99%


    Best of luck
     

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