march 1st sending out letters saying prices going up..

Discussion in 'Lawn Mowing' started by milo, Feb 16, 2006.

  1. milo

    milo LawnSite Bronze Member
    Posts: 1,259

    i am sending out letters to tell people prices are going up. anyone do this and know what number of accounts i will loose?? all are going up $5.
    i just want to know if anyone raised there price and the % of people they lost. i am thinking i will loose 10% does that sound about right.:confused: :confused:
     
  2. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    why so much ?
     
  3. scarr133

    scarr133 LawnSite Senior Member
    Posts: 277

    I only have about 15 residential accounts, and the rest are HOA's or commercial. I sent out letters last season stating I was raising the cost per cut when the price of gas was over $3 a gallon. I sent the letters out on the 1st of the month, and informed them the price increase would take effect on the 15th. I only lost one account from doing this, and it is for this year. They continued to use me for the remaining of the year, but did not sign back up for this year. If you have to raise your price to make money, then do what you have to do. Most people will understand and the ones who don't, you don't need them for customers anyways.
     
  4. Creative Lawn Care

    Creative Lawn Care LawnSite Senior Member
    from NC
    Posts: 271

    I am also raising prices this year $3-5 dollars per cut depending on the yard. I have 18 residentials and the rest comm. I am not sending my residentials anything. It will cost them $20 or so more per month than last year. I never get a price increase letter from my power company, or phone or cell phone or grocery store. They just raise the price. I plan to do the same. I don't think any will complain but if they do, they are free to look elsewhere for service.
     
  5. milo

    milo LawnSite Bronze Member
    Posts: 1,259

    i feel the same way you do. the cost of living is way more now so our prices got to go up to. and $5.00 more a account is not much on 50 accounts that is only $250.00 more a week and if they do not like it i dont need them. i just want to put togather a good plan for this season.
     
  6. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    What were these customers paying before?
     
  7. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    bad comparison. You can't do without power company, phone,etc. Mowing a lawn anyone can do and lawn service is a luxury not a necessity. You can't treat a customer like they can't do without you because they can. Send a letter. :)
     
  8. scarr133

    scarr133 LawnSite Senior Member
    Posts: 277

    I would send them a letter too. I sent my customers letters, and like I said, I only had one not renew for this year. You may have some that don't want to pay, but you have to build a good relationship with your customers. Otherwise, they would go elsewhere. If I were one of your customers, and I received an invoice for say $20 more per month for mowing, I would be calling you and asking why the price increase. But if I received a letter stating why, I would be more supportive of the price increase. I agree with you raising prices like I said in an earlier post, but you should let them know before you do it.
     
  9. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Wow!! on these items we always have received notice of an increase usually months in advance, well all but the cell but that rate is governed by our contract and I fully expect that to increase at the end of a two year contract. Groceries, well c'mon man, little extreme to expect an increase letter from IGA :dizzy:


    Milo
    In regards to how many customers you may or may not lose well that depends on what you have been charging and the type of account (commercial vs. residential) I raised prices on some of my lowest paying properties this year, both types, some $2.50 per cut, some $5.00 per cut, some $7.50 per cut, and some even $25.00 per cut. They are billed monthly it was just easier to figure the increase per cut, anyway so far no complaints. I will offer this though, the ones that I raised the most I included/added non-selective weed control, one place is a car dealership so this was something they immediately saw benefit in, and my cost for round-up a few times a year and the little labor/time involved in treating is minuscule compared to my gain.
    Best of luck with your increases. :waving:
     
  10. milo

    milo LawnSite Bronze Member
    Posts: 1,259

    dancing YES THE ACCOUNTS HAVE BEEN WITH ME LIKE 6 TO 10 YEARS AND I HAVE NEVER RAISED THE PRICE IN THAT TIME. I DO BELEAVE IT IS ONLY RIGHT TO DO IT BEFORE THE YEAR STARTS. I HAVE HAD ALOT OF GUYS IN THIS FIELD SAY YOU ALWASY DO IT IN THE MIDDLE OF THE YEAR CAUSE THEN WHERE ARE THEY GONNA GO. I WOULD NEVER DO THAT. IF THEY CAN NOT AFFORD ME ANYMORE I WOULD RATHER THEM HAVE TIME TO GET SOMEONE THAT THEY CAN.
     

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