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Raising prices with the times????

Discussion in 'Starting a Lawn Care Business' started by Doc Pete, Feb 7, 2004.

  1. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    Just got my latest dentist bill, which I also maintain as a commercial contract. Question….... Do you guy’s keep raising the contract price on properties each year, even though you start charging an unrealistic price for the service. I'd think there's a ceiling on pricing that afterwards someone else will get the contract.
    In other words, my Doctor and Dental cost just keep rising each year. So, for these type of accounts do you just keep raising your prices, too.
    I know this is a kinda weird question, but nevertheless, the cost for my root canals keep increasing.
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,342

    I am not raising any prices this year and for the last 5-10 years new prices on lawns have actually dropped in my area. Trouble with the doc and dentist is while they may not be smarter then us they do have to jump though hoops and years of school to get there thus they feel the right to rip us off and any one that might feel other wise I doubt every completes the education requirements on that field. We on the other hand are a truly equal opportunity employer you want to be a landscaper NP just say you are one and grab your personal lawn mower. Of course you could always use Dr Nick from the Simpson’s open-heart surgery for $99.95
  3. hole in one lco

    hole in one lco LawnSite Bronze Member
    Posts: 1,793

    I could have used that deal on open heart surgery iv had 2 already.
  4. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    It just makes me wonder. I got a 1.2% raise at my full time job, yet my filling at the dentist went up 40%.
  5. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    I wouldn't raise them every year or you will probably lose a lot of customers.
  6. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    that's the funny thing. You start at $30 for a lawn and 10 years later it's $40. If you raise it any more, the other guy will do it for $35. However, ten years ago my filling was $65, now it's $120. Hmmmmmmm.... am I losing money???;)
  7. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Its a tough call I guess....certain industries can get away with inflation easier than others. For example a homeowner doesn't need you or me, but they need their taxes done. Do you see what I mean?
  8. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    Errrrrrrrr...... I've seen it for a long while.:rolleyes: Too bad, we can't do something about it.
  9. BB36

    BB36 LawnSite Member
    Posts: 171

    I raise about 95 % of my customers every year by approx. a 2-4% increase per year.They don't dump us because we do the right thing.
  10. ollie212@tds.net

    ollie212@tds.net LawnSite Member
    Posts: 60

    I find if you raise your prices once every 2 years most customers wont dump you. If your afraid of the gas prices each year do what we do we put in a surcharge if the gas prices stay over $1.80 a gal.for 30 days or more. Its kinda like what trucking companies do . With residential customers they are more likely to complain, but most commercial accounts never say i thing. Our company 80% commercial 20% residential

    Straight Line Mowing Inc.

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