I Need More $$$(per cut this year)

Discussion in 'Lawn Mowing' started by turf9, Jan 18, 2005.

  1. turf9

    turf9 LawnSite Member
    Posts: 233

    I was wondering if anyone has gone to the effort of making up a letter to you lawn maintenance customers about raising prices in 05. I am not much on the grammatical wizz thing so I thought I would ask if I could see some of yous guys letters. You know insurance costs,gas.dump fees goinin up and so on.
    Thanks in advance for your replies.
     
  2. packerbacker

    packerbacker LawnSite Bronze Member
    Posts: 1,433




    Hang on and ill PM you the one i used last year
     
  3. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Here is one that is a combination from Sean's price increase letter document he sells and my wife's suggestions. I will sending letters out Feb. 1.

    I do mowing and fertilization /weed control for this customer and I did not increase fertilization/weed control since I am increasing his mowing charge a lot. I will increase his fertilization/weed control next year.

    Hope this helps and I would suggest buying Sean's documents as a starting point.

    Lets try this posting again.


    ?Company Name?
    ?address?
    ?city, state, zip?

    ?office/home phone #?
    ?cell phone #?




    January XX, 2005



    Dear Mr. XXXXXXX,


    We had a great mowing season serving customers like you this past year! In planning for the 2005 mowing season, please make a note of the following:

    Due to the rising costs of overhead and operating expenses of running a fully licensed and insured lawn business, I will be raising prices for the 2005 mowing season. Effective January 1, 2005 the price of our mowing service will increase from $XX per mowing to $XX per mowing for your yard.

    Fertilization costs from manufactures are increasing in 2005 but I have decided there will be NO price increase this year for your fertilization/weed control applications. Enclosed is your current 5 step fertilization/weed control program and the cost per visit.

    My goal is to continue to provide high quality services for all of my clients. I hope that you’ll agree that even with the new price, ?company name? will remain your choice for your lawn care service.

    Please reply by a phone call or mail your decision to keep or discontinue the service(s) for 2005.

    If you have any questions about this matter or anything else, do not hesitate to contact me any time.



    Sincerely,


    ?My name and wifes name?
    Owners, ?company name?
     
  4. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    I just raise them. No letter to the customer. Your insuance, gas etc don't send you a letter before they raise the price. Why should you. I have never sent letters in years. In that time I might get 1 person a season that calls and asks about the increase. I call that one person back and have saved myself the time of typing a letter, folding them, and also the cost involved.
     
  5. lawnworker

    lawnworker LawnSite Senior Member
    Posts: 900

    I agree with the above. Every thing must go up. It is the way of the world. :)
     
  6. packerbacker

    packerbacker LawnSite Bronze Member
    Posts: 1,433




    I think its only right you send them a letter and explain why you are doing it. Be realistic. Are gas companies going to send out letters to everyone in the world explaining a 3 cent hike every month? NO. LCOs are on a more personal level with people then OPEC is. Our customers deserve to know why their price is going up.
     
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    quit trying to justify yourself to people. your clients got a raise, didn't they? they know why, don't they? don't open a can of worms. on a $25 grasscut, a 3% increase is only 75 cents. raise it 3% on 50 clients for mowing only, and you got a $37.50 a week raise. go the same 3% on all services, you probably end up with a $50 a week raise. that's $200 a month. if you don't mention it, i bet it goes unnoticed. want to go 4%, then go 4%. i wouldn't even mention it.
     
  8. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    So are saying you just show up and mow their grass and don't tell them about the price increase and then bill them with the price increase.
     
  9. Turf Medic

    Turf Medic LawnSite Bronze Member
    Posts: 1,073

    Looks like a good letter, I personally believe that you should notify your customers of a price increase, better to have the discussion before they owe you money.

    A couple of thoughts on the above letter, since you are not raising the prices on fertilization, I would not mention the increased cost to you. The customer may think that if you can absorb the increased cost of chemicals, you should also be able to absorb the cost increases for other services. I would only mention the fertilization to say that your charges for that service will not be going up.


    I also would not require the customer to contact me if they want to continue service at the new prices, only if they want to discontinue. That way you are not having to track down customers in the event they don't follow through if they do want your continued service.

    ie Please notify us by DATE if there will be any changes in service, otherwise we will continue to service your property in the professional manner that you have become accustomed to.
     
  10. proenterprises

    proenterprises LawnSite Silver Member
    Posts: 2,297

    that is a good model letter. i plan on increasing my rates, but then again i have every year, its part of biz...
     

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