Price increase now

Discussion in 'Business Operations' started by dlandscaping, Jun 9, 2004.

  1. dlandscaping

    dlandscaping LawnSite Senior Member
    from mass
    Posts: 835

    As the hot weather sets in, people say certain lcos stop coming, members of this site have said this. Is this a good time to raise the price on certain properties if it is taking to long to do that property, or now unexpected factors have arisen, such as new flower beds, new flowers around edge of lawn, and other stuff. So far, i passed out 2 letters yesterday, one a $3 increase and the other a $5. I have not received a call about it. One other lady said ok to a $2 rise in price for gas and other costs. Is this considered shady or is this a legitimate way to stay in business. When the going gets tough, the smart get a thinking.
     
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I raised mine june 1st
     
  3. dlandscaping

    dlandscaping LawnSite Senior Member
    from mass
    Posts: 835

    I guess the rest of the letters will go out tomorrow, whenever I get a phone call, I bid really high and I end up getting the account. I almost feel like dropping my existing customers for these new higher priced ones, but I know in the summer I wish I hadnt. Is raising a price from $20 to $25 too much in one year, these are 5of my neighbors who I have had for 4 years at the same price. They dont complain but I also cant make money taking in $20 per lawn. 5.5(one front only) lawns take 1 person 2 hours @20 = 110 / 2 =$55 a man hour. Its a good hourly rate but that is just because I have done them so much I can finish them really fast.
     
  4. Team Gopher

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

    Hi dlandscaping,

    Good for you for trying this out and getting positive results.
     
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Heres what went out to 1/3 customer base ..... than in July and again in August to cover the whole resi base ....

    Economic Issues forces Fantasy Lawns Inc. to increase the monthly service price. Fuel Prices have raised over 40% since 2003 and Insurance Cost have risen 40% since September 2001. Workman’s Comp was 5% of every $100 Payroll cost in 2000, up to 9% thru 2002 and has since risen to 12% as of July 2003.

    Our monthly services breaks down to approximately 42 visits per year. The price increase of $XX per month relates to an increase of $XX per visit!

    The previous monthly cost of $ XX.00 per month was at a cost of $ XX cut.
    Monthly Service has increased to $ XX.00 per month which is $ XX per Cut

    We will reflect the price increase on next months invoicing, if this is not acceptable please make a note with this Month’s payment so we may adjust our schedule.

    Monthly billing reflects the labor, equipment, maintenance, fuel, office & billing expenses, accounting, insurance, state & federal tax and many other smaller cost which all contribute to the total cost of monthly service.

    Fantasy Lawns carry's $1,000,000.00 in liability insurance, commercial vehicle coverage as well and State Workman's compensation insurance. We are a legal operation, licensee to operate in Brevard County; we pay Federal Payroll & Income tax, Local & State taxes.

    As a Legal License Professional, we are unable to provide prices comparable to operations without such legal & liability 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.

    We hope that the overall reliability of our service & your own overall satisfaction for the services we have provided fore 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.
     

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