Pricing Research

Discussion in 'Lawn Mowing' started by Frontier-Lawn, Dec 21, 2004.

  1. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,942

    OK i doing some research. when do you guys raise your prices (part of the year) and by what % or $ amount.
     
  2. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    nobody raises their prices in the lawn business unless they are trying to get rid of an account!

    everybody that says they do,,,,,you can assume they are lying to you unless they are willing to post real contracts!
     
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Not to pop a bubble but I just raised bout 25 resi's this year .... granted only $5 per month cept couple which got $10-15 but that's +$1500 per year .... they were all due had em since 99 .... did the same last year to another group of 25 n will do the same this year to another group of 25 .... these are all older accounts

    N sorry Norm .... didn't lose one ... but I have to admitt raising prices is best way to get rid of a pita .... I have not done a commercial increase in 5 years n some of those are due .... but with the competition so thick ... I just sell "extra's" too em

    June is the best time down here .... just getting hot
     
  4. Lawnchoice

    Lawnchoice LawnSite Senior Member
    Posts: 781

    With the increase of chemical and fuel costs, I am going to increase 5% across the board.

    Last year at this time fuel was much cheaper than it is now. The same with the fertilizer.

    I am surely not going to eat the increase, I pass it on to my customers. It's the way it sits with me. If you explain it to them, they will never have an issue, or most of them !
     
  5. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    norm i have one right here that went from $145 per month (2002) to $189 per month (2004). it will increase to $200 per month in 2005
     
  6. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    yeah but they know your competition would be charging them 250 a month so yes they are eager to pay you 200!


    look a minor raise after 5 years of servicing a homeowner is the equivalent of no raise at all!


    look i dont say these things to make people feel bad! this is the reality of all businesses not just the lawn business,,,,,,in MOST cases you will die mowing a lawn under your original pricing until you lose it, willingly or not willingly!<-----that really holds true for commercial propertys and most homeowners!
     
  7. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    Every year I raise about 20-25% of my customers by $5 a cut. So every 4-5 years this is a $20 a month raise. I have not loss any customers over it. Just 3 months ago I took a PITA customer and raised her from $65 a cut to $90 a cut and surprisingly she went for it with no questions asked. Now this one was one of those take it leave it type raises that I didn't think would fly. To be honest though I was under priced to begin with by $10-$15. When she hired me I let her talk me down because she showed me were the last guy only charged $50 per cut. I originally told her $75 and she said she would meet me half way. I was in a good mood and agreed. After kicking myself in the butt week after week I decided to make the move and raise her price. I guess quality spoke and she decided $40 more per cut was worth it. I did see invoices that she was actually only paying $50 per cut before.
     
  8. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    I'm not going to post customer contracts on-line. But if you would like to bet me $1,000 that I am lying. I will send you proof. You would have to sign a contract first though :)
     
  9. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    when i talk about pricing raises, i talk about company wide not just issolated cases. as if a lawn company has a "Programed Pricing Raise" company wide, take it or leave it, cost of living increase!
     
  10. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    soupy you raise ALL of your customers, company wide on a set period of time and they all are cool with that?
     

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