Price increase letters for 2006

Discussion in 'Business Operations' started by Green-Pro, Dec 4, 2005.

  1. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Does anybody have an example of a rate increase letter they would be willing to share? Seems I no longer have the file that contained my example letter, I'm starting another and just looking for a good example.

    Thanks in advance.

    Geoff
     
  2. lawnsbyrj

    lawnsbyrj LawnSite Member
    Posts: 147

    ha mine wont fall for that.
     
  3. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420


    Your what? Customers? Good Lord say something that makes sense or say nothing at all.
     
  4. lawnsbyrj

    lawnsbyrj LawnSite Member
    Posts: 147

    how is this. Balls up and tell the clients that you are likely to loose, because you are increasing their price. That they are gonna have to pay more to have their yard cared for.
     
  5. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Say What???
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Due to the rising cost associated with your service we will no longer be able to absorb all of the related expenses and want to take this opportunity to inform you that your rate will be increasing by XXXXXX. If energy and/or cola cost decrease we will pass this savings along to you. Thank you for your understanding.
     
  7. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Man you are wierd.



    Thanks Mac, I redid the price increse letter last night. This has nothing to do with fuel increase prices of the past summer but is more along the lines of how I intend to raise rates on some of the lawns I took over early to mid season that IMO were under priced.
    This being our first full season I wanted to see how some of you all go about notifying of rate increases, looks like lawnsbyrj must not raise his huh? :p

    The clients I took over at very beginning of season got raised right off the bat and no drops or complainers, most by about $20 per month. I took over some more lawns early June and did not raise them as the season was already underway and I thought it would bode well for customer relations to leave their prices as is. This actually works pretty good for me IMO as I am thinking I can raise rates a tad higher than I normally would and leave the raised price in place for two seasons. This is going on the premise that I will raise the first group next season and leave that price in place for two seasons, kind of alternate groups for price increases, so I should have increases each year but by different halves of my customer base.
    Clear as mud? Anyway I did put togethor a letter, this is a very rough copy but let me know what you think and thanks for the reply.
    Like I said this is a very rough first draft and my intent is a general rise in rates to reflect the rising costs of doing business in general, no kneejerk reaction to the past seasons fuel spikes. hell my health ins. rates are going up another $66 per month, everything is going up it seems LOL.
     

    Attached Files:

  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Looks good to me but I always like to add that part about the decreasing cola and passing that savings along to the customers. We know that its never going to happen, they read it as I might not be paying this amount for long. In there mind its a temp. increase. Once they get use to the higher price they don't notice it and forget all about the increase JMO
     
  9. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Thanks Mac, will take your suggestion and tweak letter, got plenty of time to do that, Cold as brass balls here, like Jan. already and I'm going stir. Got a bit of bird hunting in but damn!! its so cold the birds don't even flush :cool:
     
  10. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Any other critique on my increase of rates letter? C'mon throw me a frickin bone here people :p
     

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