Hourly Rate Increase

Discussion in 'Business Operations' started by domain311, Oct 10, 2010.

  1. domain311

    domain311 LawnSite Member
    Posts: 177

    Its about time for us to increase our normal hourly rate...we haven't in about 5 years and probably would have sooner if it wasn't for such a crappy economy last year. Anyhow, what do you guys normally do when you have a price increase? Send a letter stating so, just do the next bill reflecting the increase, etc....Not sure what I did last time because I can't even rememeber...but was curious what others normally do?

    I know when we increase the price for a lawn we don't say anything, we just add the increase in the bills-no one has ever said anything about this either...
     
  2. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    Why would your customers know your hourly rate? What type of work are you billing for hourly?
     
  3. domain311

    domain311 LawnSite Member
    Posts: 177

    A lot of stuff isn't broken down...but weeding for example or some other miscellaneous tasks may be. Also, occasionally customers will ask...which I usually tell them I will give them an estimate for something in particular that they need...but if they really want to know for again, weeding, I will tell them an hourly rate.

    And basically most of our work and estimates are based on the "hourly rate" that we charge-plus materials, disposal, etc.

    How do you do it differently?
     
  4. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Wow, I guess if it works for you. I would just raise my price increase. How long hasve you been in business, how did you do your last increase. Its really isnt any of there business.
     
  5. domain311

    domain311 LawnSite Member
    Posts: 177

    Wow, what? You guess if what works for me?

    Been in business for 12 years...I said in the first post I can't remember what we did, so probably just did it...

    Just curious to see what others might do or their thoughts on it...I see sometimes other companies...not just landscaping...it can be a deli raising the price of a coffee...letting customers know that they are raising prices.

    I do contracts so this is why I am going over it in my head...for when the time comes in a few months.
     
  6. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Cool your jets bro, I could care less if you have been in business for 12 years. You are the one asking such a remedial question. According to your own words its been 5 years since your last price increase, Hmmmmm. Just raise the dang prices, dont be afraid to charge. Profit is a good thing and raising your prices once a year is also a healthy thing. Try it sometimes, your customer expects you to raise your rates! just my .02!
     
  7. domain311

    domain311 LawnSite Member
    Posts: 177

    Don't tell me to cool my jets or talk to me as if I'm an idiot...if you didn't care how long I was in business for then you shouldn't have ASKED me. I was simply replying.

    I do raise prices on certain things such as mowing or hedge pruning more often enough.

    Again...was simply asking a valid question what others thought...you can keep your .02 if you want to reply in such a manner.

    And btw, it is "their" business because they are the ones writing the checks...whether some of us notify or not, is what I am trying to find out. I'm sure some do and some don't...but wanted some input on it anyhow...
     
  8. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    Just to let you know, I am no longer in the green industry. I currently service swimming pools. My strong preference is to quote a lump sum. I try to never break my pricing down.

    BTW not meaning to be a jerk but you should be able to estimate the time for weeding and just quote a lump sum price.
     
  9. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    "Smart one," I think you have your answer. By the way it is your business. You pay taxes... you pay insurance... you pay the shop mechanic... Ah yeah its your business.:hammerhead:
     
  10. domain311

    domain311 LawnSite Member
    Posts: 177

    I hear ya...its not that I don't know how to estimate the time it may take and lump it up-I do that whenever we do an estimate. But from time to time customers, existing or potential, will ask our hourly rate for such things-which I will tell them. There are also some cases where me may do misc work, not really predefined, and its billed out hourly. This is pretty standard practice out here.
     

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