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coupons

Discussion in 'Business Operations' started by Jim Feder, Jan 25, 2002.

  1. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    You're right.

    But:

    1.) You've gotta start somewhere.
    2.) A business as small as yours shouldn't need to advertise.
     
  2. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    Hi Clay,

    I try to increase prices regularly,leaving it a few years makes it harder to catch up.

    No I don't increase new customers ,I try to price the job correctly before I start.

    However if I have customers that are difficult to deal with I will increase their prices by a much greater percentage.That way it is their decison to cancel my service rather than argue with them,or if they keep me on I am being paid very well for putting up with them
     
  3. Clay

    Clay LawnSite Member
    Posts: 236

    "However if I have customers that are difficult to deal with I will increase their prices by a much greater percentage.That way it is their decison to cancel my service rather than argue with them,or if they keep me on I am being paid very well for putting up with them"

    Thanks Andrew... Man, do I hear that one!!! lol...

    But for the average customer, how do you determine the amount to raise? Cost of living index? Or maybe a set percentage each year? Do they know about this and expect it annually?

    Thanks, Clay
     
  4. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    As an afterthought here is my increase notice:

    TO ALL CLIENTS

    Due to ever increasing operating costs it is now necessary to adjust the charge for your lawnmowing services.

    In future your regular price will be $....... per cut

    Trusting you understand that prices must periodically reviewed
     
  5. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    I think the percentage will vary depending on where you work but I try to go for 5% to 6%
     
  6. Clay

    Clay LawnSite Member
    Posts: 236

    Andrew,

    Man, 5 to 6% annually would sure make for some nice accounts in about 10 years!!! :)

    Have you been able to retain multi-year accounts with this strategy? It would seem that you would price yourself out of business after a few years??? I was thinking more like 3 to 3.5% annually... but I sure hope you are right!!! lol...


    Clay
     
  7. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    Most of my accounts are over 5 years old but this is why I have to advertise to replace the customers looking at price only.

    But why would I keep a job that is the same price in 5 to 10 years time,these same people will go for a cheaper price when you do increase your price in 5 years time.you might as well replace them with a better paying job now.

    Also when you sell work in your outer areas if the pricing is good , it will be easier to sell, if your pricing is down and the purchaser is smart he will not buy your work

    one thing that I have'nt touched on is that we always turn up or follow up with a phone call if we will be late.provide the good service-charge the right price
     

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