Breaking the news of higher prices

Discussion in 'Lawn Mowing' started by Green Masters, Feb 24, 2005.

  1. Green Masters

    Green Masters LawnSite Member
    Posts: 42

    I am 18 years old and have been mowing since i was 15. It first started out with just a couple yards. I think that i charged about $15-$20per yard. I have since realized the cost to run my equipment and the time and work it takes. I currently have about 4 yards that are worth around $45-$50. What is the best way to break the news that i need to go up on my price with out loosing the customer?
     
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    If you can figure out a way to raise the price of something without really giving them anything in return and still keep them buying whatever you are selling... run your rear to the patent office and don't look back. Seriously... You had better justify the increase with the news that the increase is a result of you getting insurance for your business so they won't have a big hassle if you bust up something of theirs, or that you have nerolled in a certification class for applications or irrigation, or new better equipment to make their lawn look better than it has been looking, or something of this nature because if someone who mowed my lawn for $15 last season comes back and says he is going to charge me $50 this season and I don't see a grand improvement in service, I wouldn't have any problem telling him he is out of his mind.
     
  3. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Just let them now all your costs have gone up a lot. Gas, insurance, taxes, licensing, ect...
     
  4. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    Costs going up I could understand and deal with.......... if the cost was only going up $5 or $10 per service. Not 250%. Costs don't go up that much from one year to the next except in extreme circumstances.
     
  5. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    you are screwed kid, face it, there is no way any customer will handle a 250% increase. just stop showing up, and start advertising
     
  6. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Posts: 1,170

    Green Masters, I wouldnt stress on loosing those 3 or 4 customers. Chances are they are going to drop you after you break the news to them. I would instead try and figure out a way to market your business and gain new customers. You can put out flyers, doorhangers, post cards, go door to door, etc.. If you even gain 2 new customers at the correct price then you will be replacing ALL 4 of the customers you lost due to the price increase. Hope all this makes sense.
     
  7. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Posts: 2,267

    You did these yards way to cheap last year and didn't even know it..When you try to bring them up to where they should be they are probably going to drop you.Start trying to replace them now.
     
  8. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Just tell them you are making your business legit. Your not going to be the local kid anymore. Tell them what you have to do to cover costs of commercial equipment and a professional image. If they dont agree, keep on advertising.
     
  9. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    100% right if anything write them a letter that says you are ending your contract with them. Because you have figured out you were way under priced and since you know they wont accept your new price of 45 dollars you find it best to just end the relationship on a positive level.

    So basically you cancel them you never though they may know its worth 45 and call you and agree to it. But either way this is something you do need to take care of and it would be best to do it in writing before the season starts
     
  10. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    It's called inflation. Prices everywhere else go up, why can't ours? I'm sure most customers arent going to fuss over raising their rate by $3 - $5 per cut.
     

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