increasing app prices for 2014

Discussion in 'Pesticide & Herbicide Application' started by americanlawn, Dec 11, 2013.

  1. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,843

    We are raising prices by an average of 5% (a little more for smaller lawns).

    Say a customer was paying $38, but now it's $41. Would there be enough 'sticker shock' to make them go elsewhere?

    Or how 'bout $69 - now $72?

    Thanks in advance.
     
  2. inzane

    inzane LawnSite Silver Member
    Posts: 2,349

    it sounds reasonable to me.
     
  3. georgialawn88

    georgialawn88 LawnSite Bronze Member
    Posts: 1,075

    Larry,
    If you do good work which i know you do I don't think it'll be that big of a deal. Inflation effects everyone. Hell milk has doubled lately
     
  4. WestGaPineStraw

    WestGaPineStraw LawnSite Senior Member
    Posts: 763

    We are going up a min of $5 per app here some are up $15 an app. Min charge for us has increased to $55, don't like it go back to Tg
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  5. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,847

    Larry - those should be good. Just don't raise prices consecutive years unless you don't like the customer (PITA factor).

    I review all my pricing as well and raise about 1/4 - 1/3 of my customer base when they fall behind costs of doing biz. Gradually taking my min price up to $50, I have found those 3k sq ft lawns with gates are the biggest PITA lawns of them all.
    Renewals going out this week.
     
  6. jbturf

    jbturf LawnSite Bronze Member
    Posts: 1,407

    So what r u guys seeing up/down for business costs?

    I've seen so far insurance is up at least 5%, materials seem flat for now , fuel is down in 13 vs 12, printing / office products all seem to be up5-10%, taxes well I seem to pay more and more each year and I'm not expecting any stimulus checks this year lol, id average all utilities and say 0-5% increase
    Posted via Mobile Device
     
  7. Ric

    Ric LawnSite Fanatic
    Posts: 11,946

    I have not raised Prices since 2007 when the economy went South. So I been thinking on raising my Fert & Squirt prices from $ 15.00 a thousand and $ 75.00 minimum per treatment to $ 17.00 a thousand and $ 85.00 minimum per treatment. Here in Florida we treat Year round, so most of our customers are paying 12 times a year. BTW Many of my yards don't make the 5 thousand Sq ft minimum.

    My Fire Ant Customers are paying $ 5.00 a thousand / $ 50.00 Minimum. per treatment 6 times a year. It cost me more for gasoline to get to the job than Insecticide to kill Fire Ants. For that reason I market Fire Ant customers hard and heavy. My profit margin on Fire Ants and Inside Pest control is over 90% including overhead.

    The Idea is to make money, not give away cheap service to half the Country Like TG/CL. If I charged $ 38 I would have every yard from Miami to Tallahassee. Of course they would get $ 38.00 quality crap also. But rather than travel all over the state, I make a comfortable living, working part time in my own little town. Bigger is not better especially if you are the low baller giving away your work for 38 1/2 Peanuts.

    .
     
  8. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,847

    Fert prices are soft right now which is ok. Taxes will NEVER go down. Insurance always creeps up. Gas, well, don't count on that being down too much longer.
     
  9. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,843

    Fert prices for us are down a little from last year, but Urea went up $50 per ton last week (unexpected). I locked in (direct shipped/truckload) prices yesterday just in time -- thanks to my Agrium rep.
     
  10. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,020

    I think we are going to hold tight again this year. Our fert costs are the lowest they have ever been and our routes continue to get tighter and tighter. We have not had a price increase in 4 yrs on existing customers. We do continue to have an increase every year on new customers.

    I can see raising prices on pain n the butt customers or customers that were priced wrong but not an across the board increase.

    It's easy to just raise prices...but we focus on being efficient and keeping our prices as low as we can as they take great care of us.

    Just the way we work

    I know we could raise prices 5% but in the long run I feel we will be rewarded for not raising prices they are not needed.

    :)
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    Last edited: Dec 13, 2013

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