Price increase question!

Discussion in 'Business Operations' started by H & M Yard Improvements, Feb 12, 2013.

  1. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Posts: 214

    Good evening all! Hope everyone is doing well. This is going to be my third year in buisness and I am implementing a price increase across the board for all of my customers. Its basically an increase to cover higher fuel costs. I have never had to do this and I understand and know that I may also lose a few customers because of such, however My question is: "How do I word a letter of such to my customers"? I would like to sound as professional as possible about it. Any help would be greatly appreciated. Thank You!
     
  2. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Posts: 446

    I don't do across the board rate raises but I adjust my cost of doing business every year and then adjust the rates of the customers that need to be increased so that we maintain our profit margin.
    Try something like this,
    "Due to an increase in our cost to deliver the services that we are currently providing to you, we are going to have to adjust your rate slightly. Your new rate beginning next month will be $XXX. Please give me a call if you have any questions.

    Best regards,
    Gary
     
  3. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Posts: 214

    How about something like this:

    Unfortunately, as our buisness grows, so does the cost of operations. Therefore, we regret to inform you that we need to impliment a small price increase of: (insert text here)

    Does this sound ok or should it be worded differently?
     
  4. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Posts: 214

    This is basically what I have so far. Any thoughts?

    As our buisness grows, so does the cost of operations. Therefore, we regret to inform you that we need to implement a small price increase of: $_______________ per cut from the 2012 price of: $_____________ for a total of: $_____________ per cut for 2013. We apologize for the inconvienience.
     
  5. knox gsl

    knox gsl LawnSite Fanatic
    Posts: 5,183

    I wouldn't use as our business grows, it puts a negative spin on a larger operation. Due to the current economics we must have a slight price increase.
    Posted via Mobile Device
     
  6. Clean Cut Lawns

    Clean Cut Lawns LawnSite Member
    Posts: 132

    Completely agree......
     
  7. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Posts: 214

    It does sound better the way you word it lol. I'm going to change it.
    Posted via Mobile Device
     
  8. 205mx

    205mx LawnSite Silver Member
    Posts: 2,362

    Sounds terrible. Blame the economy or something.
    Posted via Mobile Device
     
  9. sehitchman

    sehitchman LawnSite Senior Member
    Posts: 792

    Add some service.
    This year we are excited to provide enhanced service to your property. We will now include (pick something) spring and fall aeration, monthly lawn care tips, easy credit card invoicing, our new "best in the industry commercial mowers" or what ever you may choose. Your new rate is XXX, only a few dollars more, but I'm confident you will see the advantage. Please call if you have questions.

    Or
    Dear (customer)
    As I'm sure you know, the cost of fuel and materials in maintaining your landscape has gone up in price substantially the last couple of years. We at (your company name) must pass some of these costs on to our customers in order to continue to provide the quality service you have been used to. Your new rate will be XXX starting 3/1/13 (pick a date) Our 1st service will begin the week of xx/xx/2013 . Thank your for your continued support of (your company name) and call anytime to discuss your service.

    This way, if the cost of fuel does go down again, you have not just tied the price increase to just fuel cost.
     

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