Price Increase

Discussion in 'Lawn Mowing' started by Chuck Sinclair, Sep 15, 2000.

  1. Chuck Sinclair

    Chuck Sinclair LawnSite Senior Member
    Posts: 336

    Hello,

    How do you guys tell your clients about price increases due to HIGH gas prices i would like to charge them a truck charge or somthing any ideas?
     
  2. KirbysLawn

    KirbysLawn Millenium Member
    Posts: 3,486

    I mailed a letter to each one stating gas has had a 50% increase and most everything else has also risin. Due to that I must raise my prices to stay competitive and in business! Not one complaint.
     
  3. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    I agree on fuel, Kirby.

    But most everything else has risen?
    Time to shop. Fuel & labor are up. Insurance, equipment, communication, chemicals are down. CPI down .1% in August DISPITE increased oil prices.

    Anyway, to answer the original question, some of my collegues have imposed a $7-15 monthly fuel surcharge on their maintenance accounts. Just plug it on the invoice.
     
  4. Acute Cut

    Acute Cut LawnSite Senior Member
    Posts: 980

    I agree and yet i dont. I agree that gas prices are inflicting some damage on our business. I was going to raise the prices but then my dad made a GREAT point that changed my view totally.

    Lawn&Landscape
    June 2000
    Lawn Dawg

    He tells his customers he will NEVER raise thier rates as long as they stay with them. So DON't raise your current customers prices. Just raise the price quotes on new customers to fill the gap. Ya gotta keep the customers you already have, so dont make them fret by raising your prices.

    Sorry to disagree with ya Kirby. There has to be a first for everything. hehe.

    Have a good one yall
    Acute Cut
     
  5. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    The LAWN DAWG is a fert/weed/chemical lawn company.

    Because of the advancements in equipment, routing, communication - which are more key to fert/weed only type businesses AND because there is greater margins in fert, he can make that claim.

    If you didn't raise prices on mowing customers, it'd be a short lived business.
     
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Acute Cut wrote:

    <b><i>He tells his customers he will NEVER raise thier rates as long as they stay with them. So DON't raise your current customers prices</b></i>

    I still have customers from when I started 7 years ago. You're saying that although my expenses, both personal and business, have gone up I should continue to charge the going rates from 7 years ago? I don't think so.
     
  7. accuratelawn

    accuratelawn LawnSite Senior Member
    Posts: 922

    Trugreen added a $1 surcharge for gas per invoice.
    Think if they are serviceing 30 accounts per day, 5 days per week, 150 days per year.
    That should covered it and then some!
     
  8. dhicks

    dhicks Member
    Posts: 771

    I must agree with Dad up to a certain point. :D I doubt that I would increase my price for mowing because when I signed the account, I went in asking for top dollar. Ask me in seven years, and I may be signing a different tune. As for now no price increases.

    However, I have no problem bumping prices for fertilization, mulching, and labor, etc. Because of higher gas prices, new accounts are being quoted at a higher rates to include paying an annual increase in hauling.
     
  9. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Exactly how I'M doin'it.
     
  10. Charles

    Charles Moderator Staff Member
    Posts: 7,950

    Acute cut i agree that not raising your prices on regular customers to at least keep up with inflation is the fastest way to bankruptsy. Because most of us keep our customer many years and they make up too large of a % of our business. Due to inflation you would be losing money on them every year. Regulars understand for the most part that you need to go up in price to stay in business Drastic jumps in price they don't understand. So I go up a little from year to year
     

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