Price increases on lawn mowing

Discussion in 'Lawn Mowing' started by 1MajorTom, Mar 21, 2006.

  1. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    I posed this question to a fellow LCO, and his response was, "why don't you ask your Lawnsite buddies?" So here goes:

    How did you handle your price increases on your lawn maintenance accounts for this season? Did every single customer of yours get a price increase? Or did only a percentage of your clientele get increases?
    How much per billing cycle has the increases added to your revenue? And finally, are you satisifed with the amount your increases will be bringing in?
  2. POPO4995

    POPO4995 LawnSite Bronze Member
    Posts: 1,206

    Last year when gas prices skyrocketed, all other companies in my area raised their prices. I didnt and just took the hit. This year all accounts got a 15% increase and everyone has been very happy. I have even had people offer me more $$$. Overall, I think the general public knows that we run equipment all day long and understand fuel prices and the surcharges that follow.:usflag: :usflag:
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    My oldest clients that have not had a rate increase in about 3 years, are all getting at least 7% increases. A couple up to 15% I know I will loose a couple, at least I am planning on it as I have two premium accounts willing to pay about 33% more than the rest of my existing clients. And they are large accounts 1500-2000-K per month. Around here spring is the time to rotate accounts, in the summer its not very ethical as most of my clients are part time residences at best. I raise my bottom 1/3 every year starting last year. Following the example of a successful local company in the same market. No need to reinvent the wheel.
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    Forgot the last part of your question. This will add about 1-K per month to the gross. Is anyone ever really satisfied? This will make life easier and allow me to pay more for labor so I can get better employees so I can grow just a little. I have emotional ties to my older clients and I feel like I'm holding them hostage when I raise the rate because of the relationship. New clients I have no problem signing at significantly more money so I am anxious to get some more of those. But you have to keep the Karma on your side.
  5. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    increases??? everyone here is decreasing their price to match the DFW market.............
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I increased prices on 50% of my customers for this season. The remaining 50% were already at a good level. It should be good for $320 which should easily cover any fuel increases unless gas goes to $7 or $8 a gallon.
  7. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    I raised one account 29% - which was a public deal bid every two years, and stated that would also be my next bid, and they were more than happy to go along, as we are the first LCO in the last 20 years that has been able to get the job done, and done well. I raised another commercial 20% - It is a four year deal. The rest of the accounts are the same. I did raise my per acre bids on new places.
  8. Roger

    Roger LawnSite Fanatic
    Posts: 5,924

    I sent out my Spring letters a few days ago, about 40% of them had some increase. Those were ones that were out of line with others on my list, and most were ones that had been increased for several years. My practice has been to increase every few years, using "round numbers" (e.g. $40, $45) not every year increasing a dollar or two.

    I have had two reponses (my wording is negative reply only if needed). One was confirming the letter and some differences in payment practices. He did not get an increase. The other response was from a lady who did get a $5 increase. She did not make comment about the increase, but wants me to bag the rear of her property this season (we already bag the front). Her argument is bogus -- her twins will be playing in the backyard and she does not want them to be eating grass clippings. The rest of the story: The twins were born in September! Does she really think babies less than one year will be playing in the backyard this Summer??? These are her first children, she is mid-40s at least, highly educated, holding a high position in a large company -- clearly smart in one area of life, but hyper about her new children. I believe I will tell her she will have to find another contractor to mow/bag.
  9. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    Everybody got a 2-7.5% increase.

    "Everything is the same as last year, except there was a small increase for gas. Gas prices have gone up 50% from the start of last year, while we are only increasing 2%."
  10. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    commercials 8%, everyone else 10%....

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