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PriceIncrease Letter

Discussion in 'Pesticide & Herbicide Application' started by Runner, Jul 7, 2008.

  1. Runner

    Runner LawnSite Fanatic
    Posts: 13,496

    Dear Valued Customer

    Due to the increase in raw material costs, we must
    unfortunately raise the cost of our product to you.

    We have avoided raising our prices for as long as
    possible, but we can no longer prolong the inevitable.
    We have enclosed our new price list for your review which
    goes into effect on (date) Any orders placed between
    now and (date of increase) will be honored at the lower

    We wish to thank you for your valued account and know that
    you will understand the necessity for this price increase.
  2. garydale

    garydale LawnSite Senior Member
    Posts: 813

    I think you should point out fert. increase 67% and fuel 44%.(thats in my area)
    Don't pass up on chance to point out corn-ethanol as another issue. IMO
  3. Lawn-Sharks

    Lawn-Sharks LawnSite Senior Member
    Posts: 912

  4. Dean of Green

    Dean of Green LawnSite Senior Member
    Posts: 254

    I disagree. I think the letter covers it well. I am sure each of us would tweak it a little but to add too much information could be insulting to the customer. Who doesn't know that gas and everything else is on the rise?
  5. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    Last night I got two different phone calls from Florida Members of LS about Price increases. Both Members read but don't post a lot. A post yesterday about price was the reason for both calls. In both cases we agreed we were scare to make the Price increase move. Although we are in different markets our prices were the same at $ 15.00 a Thousand and $ 75.00 minimum. We have had these prices for quite a while now and enjoyed a nice margin. There are too many factors to discuss right now about our price structure here in Florida. Our Economy is mixed right now. Upscale Snowbird retirees seem solvent But fixed income retirees and working class are hurting bad.The bottom line is, I am sure everyone will be interested in how well your price increase is accepted.

    BTW Your Letter seems well written and When the time comes I just might use part of it. But there appears to be a big Difference in our contract agreement and Cool season. I am not quite following why you are offering the same price on services ordered before the effective price increase. I do 6 or 8 treatments on turf each year at a set price per treatment. Up sells are for other services like shrub or inside pest.
  6. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    Thanks Joe,

    Gave me a good start for my letter that we are sending a surcharge starting with our 3rd round.

  7. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,214

    I have an unusually personal relationship with my clients. Well, the good looking ones, anyhow. (Just kidding.)

    Any time I increase price I go to great efforts (without going all TMI on them) to SHOW them exactly WHY my prices are going up.

    I know Lesco has sent out bar charts reflecting fertilizer costs. Including something like that deflects blame, to a degree, from YOU to YOUR VENDORS. It gives them a complete, but concise explanation as to WHY you're doing what you're doing.

    Just my .02.
  8. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    I don't believe you have to explain that cost have gone up. The customer buys Gas and other goods and sees the same price increase as we do. My afternoon soda and candy bar now costs $ 3.30 as just one example of increase of over all cost of doing business. Both products contain corn syrup which costs have risen sharply.

    I have not raised prices but I try and point out to the customer that our industry is experiencing greater costs because of more demand by 3rd world countries for fertilizer. Some of my customers have actually ask WHEN was I going to increase prices before I said anything about my cost increases.
  9. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,214

    You're probably right, but I am amazed at how many stupid phone calls I get when I don't spell things out for people in simple, single-syllable words. I'm sure most get it, but there are some busy-body homemakers that have to do a google search just to figure out how to open my envelope... Thus, I cater to the lowest common denominator so that everybody gets the picture.

    The other issue, of course, is that the wealthy don't feel the pinch quite like the middle and lower class do. They KNOW it's there, sure - but they don't necessarily FEEL it and come to appreciate it for its potential-to-destroy-lives like we do. A refresher course regarding life-in-the-trenches won't hurt...
  10. garydale

    garydale LawnSite Senior Member
    Posts: 813

    You need to make clients aware that we are being hit on both sides. (gas and fert.)
    They do not get the connection of oil to fert.IMO

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