Increase prices due to gas

Discussion in 'Lawn Mowing' started by SCAGMAN411, Jan 3, 2008.

  1. SCAGMAN411

    SCAGMAN411 LawnSite Member
    Posts: 36

    How much do u all think i should raise prices $10-$15, or 20$ on all my lawns due to the high price of gas, also some of my seasonal jobs i haven't raised in years, plus we hav had alot of dry weather during mid summer so i end up making more money cause its less times we hav to cut it. :dizzy:
     
  2. Mike Blevins

    Mike Blevins LawnSite Bronze Member
    Posts: 1,362

    Are you wanting to raise your prices 10-15 dollars a lawn????? Good grief man that would be wonderful if you could but really if your going to raise them I would try a 3-5% increase per lawn. Personally I don't raise my prices I try to bid the job at what I think will generate the most profit right off the bat. My older customers usually tip well or know that the price of gas is going uip and give me a raise without me asking them to. I have seen some other lawncare companies try to raise prices dramatically to only lose their customers. If I had to raise prices I would talk to my clients and ease them into it slowly. Just my 2 cents.
     
  3. Dave_005

    Dave_005 LawnSite Senior Member
    Posts: 359

    Try raising your prices by $5.00 per lawn for residentials, if you tried to raise it $10 - $20 at once you will most likely lose all your residential accounts.
     
  4. gstros2

    gstros2 LawnSite Member
    Posts: 42

    $5 is what I had in mind, I agree anything more would result in me loosing that customer.
     
  5. DaveinSWFL

    DaveinSWFL LawnSite Member
    Posts: 178

    I agree most customers would probably be fine with a slight increase but $10-$15 would be a big mistake in my opinion. Be prepared you will lose some even with the $5 increase. I lost one last month because another LCO approached my customer and was $5 cheaper. It happens, I just move on.
     
  6. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    i have only one client that will not pay the surcharge, after she moved to ga from here. i mow here rental property and she only wants it 2 cuts per month go fig a extra $4 total is going to brake her!
     
  7. humble1

    humble1 LawnSite Silver Member
    from MA
    Posts: 2,499

    First When was the last time you have gone up in price, have you been at the same price for 10 years, then yeah you could go up alot. You need to look at it from the customers point of view. They look out the window see you mowing their lawn, lets say its a big one that takes an hour on a ztr, the following year you say im going up $15 dollars, in their mind they know your not using that much gas, even if gas went from 2-3 dollars that is a one dollar increase, to justify your increase based solely on fuel increase would mean you are using 15 gallons of gas which you are not. GUARANTEED you will lose accounts. If you are trying to weed out the PITA customers maybe send out a few at the higher rate, see if they bite. I wouldnt adjust more than $5 , the problem I run into raising prices every year, is that at what point does the customer say f-it ill do it myself.
     
  8. grassnazi1

    grassnazi1 LawnSite Member
    Posts: 73

    I agree.... A $5 dollar increase is acceptable. Anything really higher then that then your bound to lose a lot of accounts. Most people understand the gas crunch and will either pay the extra $5 or find someone else willing to only raise the going rate $5 dollars to cut the same lawn.

    Like Mike Belvins said, most of my people tip me without me even asking to cover the cost of higher priced fuel. I would say, 90% of my customers gave me a few extra bucks per cut or in a Christmas card at the end of the year, was a really nice surprise actually to have an extra $400 bucks this year at Christmas time from my customers! (the 12 different Dunkin Donut/ Tim Hortons cards were nice too!)
     
  9. Damian

    Damian LawnSite Member
    Posts: 242

    You are talking about per month, right, and not per mow? I think I'd suggest 10%.
     
  10. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I've been raising my prices ever since I went into business :laugh:

    If the sky is blue, up it goes, if it's cloudy, yup, 5 bucks more for that, too.
    Maybe the fact I woke up this morning means it should go up, heck, why not?

    What I'm getting at is businesses don't need a reason, don't give a reason, just do it.
    No business around here has ever explained to me why it's high, unless I ask, which...
    Customers understand we have costs to cover, don't worry about it.
    So if you think you have to raise your prices, raise them.

    Then it's just like more of that 'all in a day's work' stuff, I find that's the best way.

    .................................
    Maybe slow down a little, if I'm reading this right you don't want to go up 10-15+ a cut, maybe something more along the lines of 5 bucks, per cut. And you'll want to do this one account at a time but pronto, like one after the other until they're all in line, probably take all year to get them all in on the plan, might have to grandfather clause a few for 6-12 months.

    And it might also be a good time to start thinking along the lines of cost reductions.
     

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