Increasing fees

Discussion in 'Lawn Mowing' started by pseudosun, Jan 3, 2013.

  1. pseudosun

    pseudosun LawnSite Bronze Member
    Posts: 1,740

    How do you do it? A letter? I've always done it that way, and never had a problem. I just sent out 2 letters that were long overdue. I increased fee $5. The thought popped into my head, "What if they don't want to pay more? Do i keep them, or what?"
     
  2. lawnkingforever

    lawnkingforever LawnSite Bronze Member
    Posts: 1,280

    Usually by letter, phone call or in person for a key account. I raised half of my customers last year, most by $3. Did not lose any of my weekly accounts. My EOW accounts were raised significantly to purposely get rid of them. Lost a couple of them, the ones that remain are worth doing every other week. This year I am raising the price on the other half, 3$ seems like the sweet spot. Spread out over many accounts it adds up to a decent amount without much risk of losing any. I don't do price increases that often, but when I do they are well planned in advance and not negotiable. I always plan on losing one or two, if I don't that is great. If I do it just frees up space on my schedule for other accounts.
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  3. pseudosun

    pseudosun LawnSite Bronze Member
    Posts: 1,740

    Okay, so you're in the non negotiable column. It just never occured to me that someone would say no, because i'm very reasonable. The increases were sent to customers that i've had for 8 years. If they said something like times are tough, and they think they're paying enough, i guess i'd have a decision to make. Now the question that comes to mind is: Has anyone kept a customer after the customer said no to an increase?
     
  4. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    With the price of beer and cigarette's, I HAD to increase prices. Heck ,most of my customers were wondering why I didn't do it earlier! I usually have a cold one with each customer. By the end of the day, I'm sauced up good and ready to party even more when I get home. :laugh:

    In reality, I talked to each customer and explained that the prices I quoted them 4 years ago reflected the price of fuel and other expenses that have increased in the last few years. They all didn't mind the price increase and I had one that was at $65 and I increased the price to $68, she said lets just make it $70. :) My prices I quote are profitable enough to begin with that I only increased them because fuel was close to $2 a gallon more.
     
  5. GSO LAWNEN4CER

    GSO LAWNEN4CER LawnSite Member
    from GSO NC
    Posts: 119

    I just increased for 2013. Grandfather in the old customers,and hit the new customers with the new rate. The old customers are happy,and the new customers are non-the wiser! It works for everyone!
     

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