how many are raising app prices for next year?

Discussion in 'Pesticide & Herbicide Application' started by grassman177, Dec 1, 2007.

  1. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    Just wondering how many of you will have to raise prices to make ends meet for next season. all prices have skyrocketed especially fert to a point were we will have to. we have not raised prices for 7 years and heck fert alone has risen to almost double in that time period.

    Curious to know about what percentage or formula you will use to determine next years app pricing and how you will go about givving the news to your customers?

    Thanks for your info and comments and good luck with it all as america gets way too tight with their money thanks to a bunch of retards in office and the folks who thought this moron could do better a second time!!!!!!!!!!!!!!!!!
     
  2. FdLLawnMan

    FdLLawnMan LawnSite Bronze Member
    Posts: 1,182

    If you haven't raised your prices for seven years you must have had tremendous margins.
    I would think everyone will have to raise prices on the fertilization end of the business. There are only so many things you can do to make yourself more efficient.


    This is getting off topic but you raised it first. America in not to tight with its money, it spends to much of its money which leads to higher borrowing cost. I believe the fed has loosened the spigot on the money supply to much which devalues the dollar which causes our import prices, such as urea, to rise dramatically. If you think our economy is bad, which it isn't, wait till he other party gets in and raises taxes and spending to unheard of levels.

    Just my 2 cents.

    Mike I
    Mike's Total Lawn Care
     
  3. sclawndr

    sclawndr LawnSite Senior Member
    Posts: 326

    We raise our prices a bit each year for two reasons - first, we deserve it and second, the customers aren't shocked by a huge increase after years of no increases. I'm always curious why more businesses think they don't deserve an increase. We do an excellent job and we never wanted to be the low price leader - that's for WalMart and Chemlawn.
     
  4. Marcos

    Marcos LawnSite Gold Member
    Posts: 3,720

    I will be raising application prices to compensate for much of the N increases, of course.

    But I'm also looking at adding some additional iron for a small amount of the N, in a couple specific summer rounds, to make up the other part of the cost crunch, as well as compensate for any 'color' difference the customers may see.
    (I use primarily liquid slow release fertilizers)
     
  5. garydale

    garydale LawnSite Senior Member
    Posts: 813

    Mailed our prepay offers today.

    We raised our base price 2.5% the Gov. CPI (consumer price index)
    and reserved the right to add a fuel charge if things get really stupid.

    Added 5% iron to our Round Two application to try for more green. If results are good may use this tact to lower N.
     
  6. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    yeah, i have been using iron in my liquid apps for years now and it helps alot. now my dry has asset tech to invigorate roots, but at at higher price. we have become much more efficient in application tech with the addition of a zspray max this year. but the time has come to yes, raise price. we are a middle price company i have found, but alwasy get better results through knowledge if you will and that has spurred our very large increase in clients.

    do any of you think a 10% increase is too shocking along with a notification letter and great results and service in the past???
     
  7. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    They just raised the price of our pizza, so we have no choice...We will HAVE to compensate.
     
  8. Field General

    Field General LawnSite Member
    Posts: 133

    I have not raised my fertilizer prices for two years. My costs did not go up very much so decided to eat the difference. What is killing me is gas prices. Therefore I am going with a 2.5 or 3 percent raise this year.
     
  9. Blink74

    Blink74 LawnSite Member
    Posts: 138

    I had already planned to raise my prices per ap this year to justify the rising cost of gas, fert and the purchase of a Permagreen. Then I went to Lesco last week to find fert has jumped $4 per bag this month and they anticipate another big jump this spring. I'm just gonna raise my prices accordingly and cross my fingers. Hopefully I won't have too many cancellations as everyone will be raising there prices.

    Needless to say I'm gonna hold off on the Permagreen purchase until I see how things go.
     
  10. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,499

    Well I filled my Dump truck today disel is at $3.58 over 100.00 to fill I almost threw up. I have found that it is easier to raise prices when fuel goes up I blame it on the cost for me to get there, the extra costs for my suppliers to get product to me-. I also can raise prices after any unfortunate event that costs the insurance industry money, after all they raise there prices to make up any loss.
     

Share This Page