Has anybody lost customers to price increases?

Discussion in 'Lawn Mowing' started by troblandscape, Mar 9, 2003.

  1. troblandscape

    troblandscape Guest
    Posts: 0

    Just wondering if anybody lost customers to price increases this year. I am sending out my spring letters on Tuesday and I am raising my prices 5$ per cut, little nervous though.... with the war talk
     
  2. Lazer Man

    Lazer Man LawnSite Member
    from SW Pa.
    Posts: 9

    You can almost bet on loosing a few but don't let that deter you from raising your prices. But you stated that you are raising your prices 5.00 per cut, thats a pretty steep increase on a 20.00 yard. I'm not telling you how to run your business but don't be to jumpy on this war stuff. To protect yourself from a increase in gasoline prices put a section in your letter stating that should fuel prices increase you will have to adjust the cutting price to those increases. Just a thought. Again I'm not saying don't raise your prices but look at the increase in relation to the total cut price. Like I said a 5.00 increase on a 20.00 cut is a 25% increase pretty steep if you ask me.

    Bob:D :D
     
  3. troblandscape

    troblandscape Guest
    Posts: 0

    I average about 50$ per cut, my lowest is 30$
     
  4. Lazer Man

    Lazer Man LawnSite Member
    from SW Pa.
    Posts: 9

    I understand what you are saying but to a 30.00 customer $5 is a 17% increase even at $50, $5 is a 10% increase. We try to keep our increases at around 5 to 3% per increase that seems to keep most customers happy. They do understand that prices do have to keep pace with everything else even if they don't like it much.

    Bob
     
  5. heybruck34

    heybruck34 LawnSite Senior Member
    Posts: 300

    for another perspective I work for a CPA firm full time (doing 65+ hrs a week now that it's tax season) and we only raised our rates 3-5% this year on 90% of our clients due to the economy/war/whatever issues. Our mininum is $400 for a tax return unless it's pro-bono (free) work.

    just another angle to look at it from. Good luck.

    -Jeff-
     
  6. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    What exactly is your point here? That doing tax returns deserves more of a price increase than maintaining lawns?

    Anybody with tax software and a 10th grade education can PREPARE a tax return. What does getting $400 for it have to do with anything?

    Am I missing something?
     
  7. mowngrow

    mowngrow LawnSite Senior Member
    Posts: 275

    hey raise the price five bucks, i did. not only is gas going up, everything else is(liability ins. parts, repairs) for everyone that you loos, you will pick up three

    good luck
     
  8. mdvaden

    mdvaden LawnSite Bronze Member
    Posts: 1,946

    We were going to raise prices this year. But with the economy, we figured that our equivelant of raising prices this year would not be lowering them.

    Its unwise - in my opinion - to raise prices in an economic crisis.

    We will find ways to save and be more efficient to make up the difference.

    For example, a convenience was having my saw chain sharpened. Well I can do that, its only 10 minutes each. So I do those now, and work it in.

    Most of my competitors have much higher overhead, and much more owed on payments. They are in more of a position for price hikes to stay alive.

    We will let them raise their prices, while we hold ours down and promote the best aspects of our experience.
     
  9. heybruck34

    heybruck34 LawnSite Senior Member
    Posts: 300

    bruce I think you are missing my point. What I'm saying is the price increase, in my mind, is a nonissue. It's the percentage. Just like was posted earlier, raising a $20 lawn to $25 is a very steep jump- ie 25%. All i was trying to do was provide him with another angle of looking at it and that is even with some very rich clients we only raised their rates a little bit (3-5%).

    Maybe it's off track but I thought it would help. And I never said tax returns deserves a higher % increase.

    "Anybody with tax software and a 10th grade education can PREPARE a tax return."

    And I hope you don't believe this. No smart business man underestimates the value of a good lawyer and accountant.

    Good luck to you this season.
     
  10. Green Pastures

    Green Pastures LawnSite Silver Member
    Posts: 2,457

    No, but I did lose one customer to the rapid decline in the stock marker. She was HEAVILY invested......:(
     

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