letters for price hikes

Discussion in 'Business Operations' started by jsf343, Feb 8, 2007.

  1. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    letters for price hikes


    Anyone have a letter that you send to customers that you want to raise prices on? would you be willing to share it with me?

    thank you in advance, :waving:

    Jeff
     
  2. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    I know my customers pretty well and talk with most of them throughout the season so if I need to raise my rate I just let them know that my costs are going up and there ok with it. I just increase their rate 5% or so and their fine and understand.
     
  3. mastercare

    mastercare LawnSite Senior Member
    Posts: 289

    At the beginning of the season I send out renwal packets. IT simply says:

    "as we continue to focus on providing you with reliable service, we must review the costs of doing business each year. In order to continue providing the quality service you have come to expect, we have determined that your lawn can be cut this season for a price of $xx.xx per cut."

    If people call and complain I tell them that I provide a professional service and the expenses such as liability insurance to protect them, and employing reliable labor has gone up. Always turn your "expenses" into a benefit to them. If they still complain, I simply explain that I could do it for less like a lot of my competitors, but in order to absorb my higher costs, I would have to cut corners when servicing their property, and that's not the reputation I've built for my company, and its a pretty poor way to ensure a good customer relationship for yeras to come.

    Most people won't even question you, and you won't have to have this conversation. If you lose a customer over a couple of bucks, you probably didn't need them anyways. Send them a nice letter telling them that you've appreciated their business, and if for some reason they're unhappy with their new contractor, please hold onto my card. I would enjoy the opportunity to provide you with quality service in the future.

    That's my advice. Some will call back after they've been unhappy with the low priced companies. I got 3 of them last year. Actually all of them were new customers I quoted. I sent them a letter telling them that I was sorry not to earn their business at this time, but would like an opportunity in the future if they have the need. A few weeks of no-shows by another company and they'll call you pretty quick.
     
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    Mastercare/ Dan
    That is an excellent, short, to the point, increase letter. Thank you for posting it.

    I have a increase letter that goes into great detail, but you know I just don't think the people care why the price is going up. A lengthy letter is not only a waste of time but probably confusing too.

    Thanks again.
     
  5. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    Thanks everyone! The main reason I was asking was because it was for customers or yards that I really don't like to much. (pita customers or yards)
    I wanted to find a way to raise the price to the point we may like it a bit better or they will quit service.
     

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