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Price increase

Discussion in 'Business Operations' started by the ace, Feb 16, 2006.

  1. the ace

    the ace LawnSite Member
    from usa
    Posts: 147

    I have read so many posts relating to the increase in fuel not being a major factor in a price increase because it doesn't take that much more fuel to mow each property. Fuel prices go far beyond your lawn mowers. The fuel prices have effected every company whos products you use to run your business, right down to the people who make your ink cartridge for your printer. This additional expense to them gets passed on to you, so if you didn't raise your prices this year or last you may not like your numbers at the end of this season!:cry:
  2. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    Well this is exactly the reason why I raise prices, overall cost of doing business rises and additionally c.o.l.a. or cost of living allowance rises annually affecting us on the personal side. The thing I was so tired of seeing last season was all the knee jerk reaction to the fuel spikes, sorry but IMHO if you are running your company the way it should be run you should be able to absorb fuel costs as far as actual mowing goes.
    The suppliers I did business with last year did not raise prices in mid-year due to fuel spikes, from my fertilizer supplier, nurseries, to the materials/stone yard I deal with. These are all very successful companies and this tells me something, they obviously fixed their pricing structure to allow them to absorb the spikes in fuel last season without raising prices or even adding a fuel charge for that matter.
    Now understand, I have been told upfront by these same suppliers to expect healthy price increases for this year (15% across the board for fert & squirt) and I anticipated this. I sent out notices of significant price increases to accounts that needed to be increased this year ( some 5% some 25% average 8%). Based upon the retention I am enjoying my customers obviously understood the reasoning behind such increases.
    Your right Ace fuel prices do go well beyond simple mowing costs, it would be refreshing to see this kind of attitude when posting of mid-season rate increases based upon rising fuel costs as opposed to the simple and non defendable "I'm increasing because it costs me more to mow", theres much more to it than just that.

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