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Discussion in 'Lawn Mowing' started by hgotti, Feb 10, 2006.
I was wondering if you guys go up on price every year for your services
I go up every year between 2-5%. Our costs go up so why should that come out of our pocket?
I only raise my prices when the economy dictates that I should. I'm certainly not one of the guys you'll find doing lawns for $25 to $30 per week.
I think most guys go up everyyear, But I don't. I normally go up $2 every few years. i think some people need to realize that our customers feel the rising cost of living just as much or MORE than we do. A person that has a family big mortgage and a few new vehicals in the drive way, takes a hit in the wallet, and here comes the lawn guy demanding another $5 per cut this year.
Im not gonna cut my own throut and end up lossing a bunch of customers.
sure someone is going to argue now, I tell ya around here if you go raising it $1.50 this year $2 next year they are gonna look else where
I raise half my customers per year, didn't really plan it this way it just sort of happened and I decided I'd stick with this method.
My customers at the beginning of last year were informed of price increase, I took over/added several customers beginning in June, didn't raise them even though they probably should have been. The second bunch was raised this year.
I'm comfortable increasing prices this way because the customers don't see an increase every year, but every two years and IMO this helps to further strengthen the company/client relationship. My increases for this year have ranged from 7% up to 24% with no dropped clients.
For lawnmowing we look at the time spent on the prop and how profitable it was. If it wasn't making money we go up. If we made a good enough profit the price stays.
JPocket, I agree with you to a certain degree. I do not think that you should increase your rates every year if you do not need to. However, I have mortgages, I have a family, I have vehicles, and then on top of that I have business expenses. I believe that if someone needs to raise their prices to make a living then they have to raise their prices. Even if you live by the quantity theory. If you are not making money on your accounts and you have a lot of them the only thing that you accomplish is to dig yourself deeper into the whole. I think it is a bigger payoff to lose a few customers due to raising prices then to lose your home over it, or whatever. With that said, I again say that I do not believe that you should raise them just to raise them. Do it as your business needs and expenses dictate it.
comes under not my problem. My costs of living are rising as quickly or more so than theirs. Why should I not get to live in a nice house or drive a new car, just so they can? Pay up or get replaced.
Most clients understand that costs go up and so do their prices. Most are much more accepting of annual increases 3-5% than random increases of small amounts or giant (10-15%) increases every third year. by the time that comes around, either they have left already or they are accustomed to not getting increases.
I increase on anniversary date, unless that is in the dead of winter, then they get it in April.
I totally agree, Im refering more to the guys thats say they raise thier prices every year just for the heck of it. I had one guy a little older than me say "If you don't raise your prices every year you might go out of business" I heard people on here say that they raise every year no matter what. That's what I don't agree with. Raise em to the point where you make enough money on them. Every year is a good way to piss Great customers off.
If You Think About It, Lawn Mowing Is The First To Go, When People Are Having Money Issues, So, What I Do To Avoid Loosing A Client Is Plan -a- I Go Up On Half Of Them After A Few Years At A Stable Rate. Then The Following Year The Other Half, Plan -b- Any One Who Calls For Mowing At Times That Money Is An Issue, I Figure Out What I Need To Charge,(normally) Then I Add $5 For The Cost Increase, If They Stay With Me For Years To Come I Transfer Them Like I Did With My Older Clients, After A Few Years A Small Increase, This Way You Dont Really Put A Hurting On All Your Clients At Once..... But, If They Need Mulch, Or Any Other Material Item, I Go Up For Every One, If It Costs Me, It Costs Them Also..... Such Is Life