Need To Raise Prices

Discussion in 'Business Operations' started by Infinite, Jun 30, 2005.

  1. Infinite

    Infinite LawnSite Member
    Posts: 100

    Gas prices have shot up considerably within the past year and I am going to be forced to raise prices. Would you raise prices in the middle of the summer or just wait until next year? Also does anyone have an example of a letter I could send to my customers informing them of this?
     
  2. Dogbonz

    Dogbonz LawnSite Senior Member
    Posts: 389

    Dave's Lawn Care
    Lake Odessa Mi
    (222) 555-1212 Phone
    (222) 555-1221Fax

    Dr. Ishmel Jones
    101 Main Street
    Lake Odessa, MI 12345

    Month Day, Year

    RE: Price Increase


    Dear Dr. Jones,

    Our goal is to provide our clients with the highest quality services available.
    In order to maintain that quality, effective May 1st, we are being forced to increase the price of our mowing services on your property from $30 per mowing to $38 per mowing.

    In the past few years we have had to pay increasingly higher prices for worker’s compensation, and insurance.
    Now with the ever rising gas prices we are left with no choice to raise our prices. We have always just absorbed these costs in the past but we are no longer able to do so.

    We hope that you’ll agree that even with the new price, A Cut Above Lawn Care remains the top service provider in this area.

    If you have any questions about this matter or anything else, do not hesitate to contact me any time.


    Respectfully,


    Dave Pruitt
    Owner, Dave's Lawn Care


    Hope this helps,,,, :drinkup:
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    <marquee loop="infinite" bgcolor="#DDDDDF"><font color="#000000">Have a tax question? Need free business advice? Ask our CPA. Click Here </font></marquee>
    Hi Infinite,

    Do you have your current customers under contract for a fixed pricve each month or are you able to change the price?
     
  4. Infinite

    Infinite LawnSite Member
    Posts: 100

    I have no fixed contracts. Next year, I am going to have everyone sign a contract for 7 day mowing or 10 day mowing.
     

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