NOT raising prices....(just an idea)

Discussion in 'General Industry Discussions' started by AboveTheCut, Sep 2, 2005.

  1. AboveTheCut

    AboveTheCut LawnSite Member
    Posts: 137

    I have read everyone's opinions on raising vs not raising their prices to offset the rising fuel costs. I have decided not to raise mine until the begining of next season or for any new one-time jobs. I have been thinking about sending a letter with my invoices to all my customers letting them know that I am NOT raising their prices or adding a "fuel surcharge" (like others, ie ups, fed ex, dhl, etc.) I am wondering if this will look better for me (reminding them) or if it will make me look bad (for whatever reason). I figure its only a couple more months for the season and I think I can handle a little less profit if it means holding on to customers for next year. What do you think?

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    a little note mignt not be bad
  3. CutApproved

    CutApproved LawnSite Member
    from NJ
    Posts: 234

    above the cut,

    If your not raising then I think a letter stating.... Although the fuel costs have risen lately, I will continue to honor your current rate blah blah blah..

    Sounds like a good idea to me.
  4. PR Fect

    PR Fect LawnSite Bronze Member
    Posts: 1,074

    Sent the same type letter last week to all of our customers. Then the gas went up $.80 a gallon this week. But I still think it was a good idea. The problem is those who are starting to ask for a price on next years services. How much of a raise will be enough? PR
  5. thecolorgreen

    thecolorgreen LawnSite Member
    Posts: 50

    AboveTheCut, what about next year? Will your customers still be in your "I'm not raising my prices like everyone else" mentality when you try to raise them next year? It seems to me that doing that will work against you because at some point, your goining to have to raise your prices.
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    sounds to me like you're asking for a patt on the head from your clients.
  7. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    why would you not want to recover the costs????
    it won't make a hill of beans as far as customer loyalty goes...
  8. Dirty Water

    Dirty Water LawnSite Fanatic
    Posts: 6,799

    I think its a bad idea, you will raise your prices next year, when gas hits $4 a gallon.

    But your customers will still be thinking about that little card you sent. However, if you didn't raise your prices, your customers wouldn't even remember the card.
  9. fred pereira

    fred pereira LawnSite Member
    from N.J.
    Posts: 14

    New to site ,but have been in business F/T for one year, P/T 3yrs. and have pondered the same. I was told A LOSS IS A LOSS ....... and its never made back up . I mean , Only a couple months ago I remember a Wendy's Jr. cheeseburger being 99 cents but they raised the price to 1.29, but you didn't hear anything about that. People just paid the difference.(approx 33%). Its expected that if you do raise the pricing you may loose a few, but there will be new customers to replace the old ones . Just figure out what percentage would keep you in the same profit range and sell yourself .
  10. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    sounds like you are on your way to making it in this business....


    remember this is a business....... plain and simple.

    and the " a loss is a loss and can never be made up" is soooo true, especially in our business..

    we sell time. and as we all know, time can never be recaptured... is just goes on and on, like an unstopable river.

    with our industry and it's short maney making timeframe, it is even more important to get every penny you can in your pocket before winter rolls around.

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