Don't be fool this year, take my advice!

Discussion in 'Lawn Mowing' started by CharlieBingo, Feb 13, 2005.

  1. CharlieBingo

    CharlieBingo LawnSite Senior Member
    Posts: 400

    Raise your prices! Best advice I ever got and since I get so much good advice on this site, I'm giving my two cents. Most of us this time of year are afraid we won't have enough work so we often price low;then in May we are drowning in under priced jobs. I read a post before and guys said they work 7 and 8 days a week. Take control of your life and company. I did this two years ago and wow everything got a lot better. You'd be surprised that can charge what your worth and not be dropped. Good Luck!
     
  2. Randys Lawn Service

    Randys Lawn Service LawnSite Member
    Posts: 29

    Should one come up with a percentage increase or just raise the per time charge by a flat dollar amount???
     
  3. WildLake

    WildLake LawnSite Senior Member
    Posts: 368

    So you quote a low price to get the job, then raise it later because the customer will have seen that you are worth it still and keep you on.

    I hate to ever raise a customers rate. I usually bid on referrals and bid my usual a little above average price and that way if they go for it, I know they won't be a cheap PITA and I wont have to go through the raising my rate speal later and risk losing them. I just don't like to have to explain my reasoning for the increase and end up defending myself.

    I am always conscious of my cost and alway bid to make a nice profit. IMHO, thats the only way to do it.
     
  4. newbomb

    newbomb LawnSite Senior Member
    Posts: 391

    Good advice all the way around. I have about 15 long term customers that will get an increase of 20% or so. I have not raised these clients since I took them on. I will go full time this year and the raise must come. I hope to not lose any but if I do, I'll replace them with better pay. I will not quote anything cheap this year and if the customer balks I walks.

    -Paul
     
  5. Rollacosta

    Rollacosta LawnSite Senior Member
    Posts: 331


    Great advice charliebingo , i decided at the beginning of this year that customers can either pay what i want /need or get someone else plain and simple :) theres no way im entering those silly price wars that so often go on at this time of the year
     
  6. stumper1620

    stumper1620 LawnSite Bronze Member
    Posts: 1,889

    just a side note to this, i heard on a financial report the other day they expect gas prices to soar way higher than last year, starting in the early spring. keep that in mind when bidding or reserve the right to add a fuel surcharge.
    3 bucks a gallon could have a tendency to hurt the bottom line.
     
  7. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    First I start right but I figure to raise every two years and I raise about 50% a year.
     
  8. nitrotim

    nitrotim LawnSite Senior Member
    from nj
    Posts: 525

    The customers think that their charge starts when you start cutting at their residence they don't realize that it really starts when you load you trailer and turn the key in the ignition to your truck. I have been giving quotes already this year with that in mind.
     
  9. tinman

    tinman LawnSite Bronze Member
    from ga
    Posts: 1,348

    Excellent advice.... I am adding a little note to all customers that states the possibility of a slight rate increase if fuel prices go above a certain $ amount in my town. Already going to raise most every price due to the increase in fuel prices from spring of last year. I saw where a lot of guys had fuel surcharges in their contracts from last year's posts. Smart guys.
     
  10. CharlieBingo

    CharlieBingo LawnSite Senior Member
    Posts: 400

    Bump. We're all hungry for work. But, remember we are in business to make money, not work for free! Price right.
     

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