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i raised almost all my account prices 5 to 15 a cut. look inside for results

Discussion in 'Lawn Mowing' started by milo, Mar 28, 2006.

  1. milo

    milo LawnSite Bronze Member
    Posts: 1,259

    i raised my prices big time this season and can tell you the ones that got price raise i have only had 2 that are moving on. i raised my prices big time to. most about 6 or 7.00 a cut some as much as 15 a cut and i am talking about 20.00 yards i did this to. now they are under a contract to. i will never price a yard so low that i just get it anymore. i am gonna be one of the people who gives out really high bids and if they dont want me thats fine cause i dont want to do a job for $30.00 and it should be at least $40.00 a cut and in my area there are so many lowballers it is not funny. people try it they will pay.:dancing:
  2. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    if the lawns are priced on target, there is no way a residential customer is going to pay an additional $15.00 per cut. no way. Now since you priced too low last year, you got away with it according to you this year. Try another price increase next year for another $10 per customer, and let us know if the customer still retains you.

    Facts are, once a lawn is price right, it is VERY hard to continue YEAR AFTER YEAR raising the price. Just ask me, I know, 8 years in business, a $40.00 lawn priced that way 8 years ago, is not going to be able to increased to $65.00 now. Just the way it is.
  3. str8linemowing

    str8linemowing LawnSite Member
    Posts: 5

    we no longer deal in residential customers unless they are high end customers . where a price increase will not cut inot their budgets.. the retired couple on social sec. just cant handle a price increase. We deal maninly in copmmercial, municple, and condo accounts. They usually understand and have the funds to pay for increases. Been in the lco since 92 have 8 full time employees 2 part time . never had a problem with increases
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Your profile says 11 years in business. I dont want to ask, but I have to............. is this the first increase?
  5. jtkplc

    jtkplc LawnSite Silver Member
    Posts: 2,646

    You must have been WAY low to begin with. Think of all the money you've left on the table because you chose to bid it low in hopes of getting the property.

    There is no way I could do that with my customers. They might go for $3-5 raise, but not up near $10, they would probably start looking elsewhere.
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I disagree with that. I raise mine every 2 years. Raise 1/2 on year, 1/2 the next. There are a few that go longer like very good payers and big commercial. If you do it every year people will remember and complain. If you do it every 2 years they seem to be ok with it
  7. str8linemowing

    str8linemowing LawnSite Member
    Posts: 5

    If your raising because you bidding to low ok... but if your raising becasue of gas prices there is another way around a price increase.. we have in all are contract a fuel surcharge price... we can add on to the contracted price any where between 3.00 to 6.00 per mowing/ service this way you can remove it when and if gas price should ever go down.. most customers understand fuel charges.. plus they sign the contract explainging it to them.
  8. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    I just bumped mine up again 2.00 per cut plus a sliding fuel charge rate 1-3.50 per cut depending on the gas.
  9. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Your profile says you've been in business 5 years. Not sure if you ever updated your profile from when you signed up or not. Let's just for examining sake, say you've been in biz for 10 years, that means that your customer has accepted 5 price increases from you. Now let's examine this further. if they are a $1.00 increase, that would be 5 bucks. big deal. A $2 increase would be 10 bucks, still doable. Tell me the amount of the increase, and how long you've been in business, then we'll go from there.
    I'm saying that there is only SO MUCH a customer is going to take. And yes, I do believe there is a cut off point where once you reach it, the customer is going to say, "enough is enough, I can find cheaper elsewhere."
  10. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    bump... tell me lawnman scott about your increases and how long you've been in business since you disagreed.

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