Price increase letter

Discussion in 'Lawn Mowing' started by double e, Feb 12, 2003.

  1. double e

    double e LawnSite Member
    Posts: 197

    It's that time of year again-
    looked over accounts, probably going to increase 25-35 acounts

    Does anyone have a letter or template- I can use for outline


    Thank you,

    sixpacbush@aol.com
     
  2. 2 man crew

    2 man crew LawnSite Senior Member
    Posts: 403

    I send out a sign up sheet, service agreement, contract or what ever you would like to call it. It has the prices for all services for the year and a check list for them to pick the services they would like. And of course a place to sign. No need to draw any more attention to a price increase than needed.
     
  3. BRIAN GALLO

    BRIAN GALLO LawnSite Senior Member
    Posts: 282

    2 Man Crew,

    I'm a little confused. Do you charge the same amount for all of your properties, or do you customize the "checkbox" letter's prices for each account? For instance, If you charged $30 per cut last year for a property and want a raise, do you list $32 this year and let them put a check next to it?
     
  4. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    I believe these belonged to Jodi and were some of the better terminology I saved from a past thread?? If they're not hers or Matts then I appologize to the rightful owner.

    Letter of Discontinuation of Services
    Dear Mrs. Smith,

    I regret to inform you that starting March 1st, 2003, our company will no longer be able to service your lawn because we rely on timely payments to bring our customers the best possible service. Because of the late payments, your service has been discontinued.

    Letter of Price Increase
    Dear Mrs. Smith,

    Please be advised that effective 3/01/03 your lawn maintenance service price will be increased to $ xx.oo per visit. If you wish to continue service please sign and return the acknowledgement below stating the new service charge. If you wish to discontinue services, please contact the office by phone so you can be removed from our schedule.

    NOTE:If they dont take the price increase I would then send them a ThankYou letter for their business, and attach a list of 5 reputable contractors in their area whom they could call for quotes.
     
  5. IBGreen

    IBGreen LawnSite Senior Member
    Posts: 726

    I'd set aside a day to go around and let them know face to face if you want to keep them.
     
  6. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Here's what I sent to 30% last year .... this year another 30%


    Economic Issues forces us to increase the monthly service price. We have not increased lawn service prices since 1999. Fuel Prices have risen 50% since then and Insurance Cost have risen almost 40% since September 2001.

    Monthly billing reflects the labor, equipment, maintenance, fuel, office & billing expenses, accounting, state & federal tax and many other smaller cost which all make up the cost for monthly service.

    Fantasy Lawns carry's $1,000,000.00 in liability insurance as well as State Workman's compensation insurance. As a License Professional, we are not unable to provide prices comparable to operations without such protection, nor do we wish too. The personal liability these operations place on the customer is not worth the risk of injury on one’s property or damage that may occur. Furthermore the legal labiality is not worth state & federal penalties, as many have no liability insurance or legal licensee to operate in Brevard County and many do not pay Federal Income tax or State property taxes.

    We hope that the overall reliability of our service & your own overall satisfaction for the services we have provided to you will allow us to continue service at the new monthly price. If this is not acceptable, we apologize for any inconvenience this may cause, if you do not elect to continue our service.

    The price for monthly service has increased $$.00 per Month

    We will reflect the price increase on next months invoicing, if this is an issue please make a note with your payment or feel free to call the office for further comments
     
  7. thartz

    thartz LawnSite Senior Member
    Posts: 486

    Fantasy;That is one professional letter! Love the statement about not lowering your price to meet someone without such protection.
     
  8. 2 man crew

    2 man crew LawnSite Senior Member
    Posts: 403

    Yes, I customize the "checkbox".
     
  9. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    Dear Mr. & Mrs. ..........,

    It has been our pleasure to provide you with landscape services since August of ........ During this period we’ve initiated numerous service improvements such as ............................................, ......................................................................................................... and others. This fall following our annual customer survey we will announce more improvements.

    I am writing you today regarding our current service agreement. My letter is to inform you we find it necessary to raise your weekly rate to $......... effective ................... 1st. Despite increases in costs over the last two years, we have held the line, not wishing to raise the price we charge our customers. However, like all service providers find it necessary from time to time to increase these rates to cover increased operating expenses. Most recently we’ve received increases in the Health Insurance and Workers Compensation, which we could not absorb, as we did last year. By adjusting our service rates we can continue to provide the superior service, you have become accustomed to. I believe ............. ...................will continue to provide you with the valued service you are accustomed to and relied on.

    In closing, we truly appreciate the opportunity to serve you. In the current competitive environment, we know you will understand that we still offer outstanding services for the price and trust you’ll understand the necessity of this increase. We assure you that even though our weekly service rate is increasing, our products and services still offer you the best value in the marketplace.

    With Regards... devildog
     
  10. Andrew S

    Andrew S LawnSite Member
    Posts: 150

    Dear Customer,

    Due to ever increasing operating costs it is now necessary to adjust the charge for your lawnmowing services.

    In future your regular price (including tax) will be $...... per cut.

    Trusting you understand that prices must be periodically reviewed.
     

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