Locking in prices

Discussion in 'Business Operations' started by joee0914, Sep 16, 2011.

  1. joee0914

    joee0914 LawnSite Member
    Posts: 126

    So as the end of the mowing season makes its way forward i've been thinking about a simple strategy to help generate a lot of return from current customers. My plan is to send contracts to my current customers for next year locking in their current price with no chance of increase as long as the property is not changed during the off season.

    Does this seem as a good tactic or does it leave to much risk at my expense.

    I know its a bit of a chance with fluctuating gas prices but most of accounts include a little extra overhead which should cover any increase in gas prices.
     
  2. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    Sure why not....
     
  3. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,695

    If you are happy and making a good margin at your current then sure. Include a well written letter thanking them for their loyalty and how you want to guarantee them a spot on next seasons schedule.
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  4. tlc1994

    tlc1994 LawnSite Senior Member
    Posts: 290

    I think it is an excellent way to retain your current customers. Just be sure to write up a contingency that the property and services must stay the same for the locked in price.
     
  5. shade tree landscaping

    shade tree landscaping LawnSite Senior Member
    Posts: 915

    we do it on fert and cutting, tell them to "lock in current year prices." Also offer 10% off season if paid in full Jan 15th
     
  6. JDiepstra

    JDiepstra LawnSite Bronze Member
    Posts: 1,511

    10% off way too much for paid in full. 5% tops
     
  7. CLS LLC

    CLS LLC LawnSite Senior Member
    Posts: 487

    I have sent the following years service agreements out with the final years invoice without offering any incentive and I did receive most of them back, but one piece of advice I have for you is to still send them a letter in the spring reminding them that they are on your schedule. I just say this because quite a few customers had forgotten that they signed the service agreement and called in the spring asking if we would be servicing their property again. As a result of this confusion I don't send service agreements in the fall anymore.
     
  8. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Posts: 909

    You need to have a fuel surcharge in there. Mine states that if fuel rises above $4 per gal we get a surcharge. I'm not eating a big fuel bill. What you gonna do if you've promised them a rate and your fuel costs double?
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