had to raise prices!

Discussion in 'Lawn Mowing' started by jeffex, Mar 13, 2008.

  1. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    My original plan was to wait until the season started and raise prices but with gas prices leading the news lately I raised them now. I never like to give my customers too much time to shop around on me prior to the first cut but it went over VERY well. Most were expecting the increase and all were sympethetic to the increase. Timing is everything . roughly a 7% increase to most . It wasn't across the board but for about 60 % of my customers to bring them up to the ones I raised last year.
     
  2. 8307c4

    8307c4 LawnSite Member
    from VA
    Posts: 33

    You really don't want to raise them across the board anyhow that's just an expression... But it starts out this way, you raise a percentage by an amount, then just deal with that for a bit and see how it helps, then later you can raise something that didn't get raised, also later it becomes a year-round thing you don't even notice you're doing it anymore.

    But you have to start somewhere, somehow some kind of way that first step has to be taken, because those who never start also never make it but so far. Eventually it will become like so much in a day's work, but the fact it went over so well is good news.

    So what's the price of oil like, 150 a barrel?
     
  3. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    I based my new prices on how to recover the potential $4 a gallon by the time i do my first cut as wel as some new profit. If it goes higher then I'll add more but for now I just wanted to strike while it was in the news and justifiable. Every season you never know who will dump you for the cheap guy who comes in with a $20 or $25 price. My program was to do like you said raise throughout the year in the past at no specific time where they suspected it. Summer is always good when they barely come out of the airconditioning to pay you!! The hotter the better .
     
  4. lawnprosteveo

    lawnprosteveo LawnSite Bronze Member
    from Tulsa
    Posts: 1,930

    Most of my customers are getting a price hike....anywhere from $5 to $10 per visit. Im also not mailing out statements anymore...they will have to pay when Im there or pay several in advance.

    Cutting out my outlying yards too....less driving!
     
  5. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    I'm slowly trolling through my customer list selling spring cleanups and adjusting prices. My favorite thing is the desperate ones in the spring that wait until the last minute to find a lawn guy. Is nice to break the ice on the season and see what diresction pricing will go .
     
  6. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    I've finally raised my prices...some of these people amaze me. This one account wanted to know why I needed to raise my rates! Duhhhh...
     
  7. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    In about 3 weeks we"ll get to see if there is a new crop of start ups this year. Last years drought ran many a lawn cutter running for the hills. this is a text book supply and demand business. supply of cutters dictates price of competition.. Every year April brings out few customers who's lawn guy didn't show and they are desperate to nail down a service. I love these people!!!
     
  8. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Posts: 1,945

    I raised my prices as well this season, so far no complaints from customers.
     
  9. AndyTblc

    AndyTblc LawnSite Fanatic
    Posts: 5,476

    I raised 2 of my customers last year, and I tried to raise the price at my great grandmas, she lives a 3 minute tractor ride down the street turn right and the stop sign and 4 houses on the left, it takes me maybe 5 minutes, I charge her $5 to cut her grass behind her big garden that she rents out, one day I cut it, and she asked how much, I say $8, I thought I was going to have to call 911, she started panting for breath and looked at me like I just shot her. And she pays $22 to another guy to cut her grass and it takes him between 5-10 minutes, but she won't pay me, because "I'm not there right away in the mornings". I told her over and over that I can be there what ever time she wants me to, but no, because the other guy picks up sticks. I left after that. But a few other customers are going up this year as well.
     
  10. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    are you shi&%in' me
     

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