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Price Increase Amount?

Discussion in 'Lawn Mowing' started by Frontier-Lawn, Jan 31, 2007.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    i have a commercial property i do for 2 years now and want to do a Price increase. they currently get billed $220 a month now, and i don't know what a good price to to re-bill it at so i make more $ but also not lose it either.
    heres the property info on it.
    Land Area: 50,250sf
    Total building Area: 27,350sf
    Parking area: 7,600sf
    Planting Beds: 7,650sf
    Grass Area: 7,643sf

    All we do is grass trim, edge, blow & rd planting beds & trim plants, the client hands the fert and squirt to a diff company.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I'm thinking $235...unless you think you're not making money on the account. If you're doing fine with it then I don't think $235 would be out of line.
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I'd say this is more related to the amount of time it takes you ....based on an average of visits per year ....I don't know your number of cuts ....but based on 42 per year your getting $62 per visit ... as it stand now your getting $2640 per year .... how many hours does this take??

    This would have to include any extras you do ...that is part of billing ....ie trimming or spraying

    From here your really getting to the meat of the matter
  4. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    1hr each week (march-oct) 1hr bi-weelky (nov-feb)
    and trimming of the hedges 2 times (@ one full day) per year and the yearly cost is cut in half one part goes to the grass the other goes to trim the trees/hedges.
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Ssoo that comes out to like 50 hrs per year or just over $52.8 per hour .... that don't sound too bad to me .... at 60 hours per year you at $44 ....that's still not bad but would need araise soon
  6. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    would a raise of $30 per month ($250) be too much? or should i just go with a $235 or $240 per month?
  7. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    edge it up slowing each year to get where you want to be IF you think you need a raise if not leave it alone
  8. jeffscap

    jeffscap LawnSite Member
    Posts: 155

    Look at it this way, just the cost of living increases@ 3.5% per year,to take into consideration.
  9. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    $235 or $240 would be in line I would say. I try not to raise prices every year because eventually people will get tired of the philosophy of raising prices every time the new season rolls around. I try to keep it to once every two years.
  10. sikagrass

    sikagrass LawnSite Member
    Posts: 238

    I do a group of apartments and was in the same boat after a couple of years.. I didnt want to mug them face to face,and put them on the spot, I wanted them to have time to think over my very reasonable request of a 10% raise, and not rebid it,so I sent a letter with the usual reasons. Worked for me.

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