Raising Prices?????

Discussion in 'Business Operations' started by His Scapes, Feb 20, 2008.

  1. His Scapes

    His Scapes LawnSite Member
    Posts: 35

    I was just wondering what you guys did about price increases on yearly maintenance customers.I filled up my diesel today at 3.59 a gallon and figured it my be time for an increase.I have only increased prices once and it was about 3 years ago.What would be an appropriate increase and what would you say in your increase letters.Any info would be helpfull.
     
  2. Wrobel#1

    Wrobel#1 LawnSite Member
    Posts: 114

    i raised my rates last year 10%-20%
     
  3. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    didn't you post this twice ?
     
  4. Landrus2

    Landrus2 LawnSite Platinum Member
    Posts: 4,833

    2.5% each year is your best way to raise. 10% to 20% most of your costumers going to be calling you there is a mistake on my bill.:waving:
     
  5. salandscape

    salandscape LawnSite Member
    Posts: 168

    I went up about 4-5%, and not across the board. I did go up significantly on a few to either get them to drop or make it more worth my while. I did hear somewhere that with all the increases in our industry that we will need to go up 5% just to maintain last years profits.
     
  6. Mow Mony

    Mow Mony LawnSite Member
    from VA
    Posts: 229

    We adjusted each account accordingly, about 80% received a prince increase. Those that didn't just got one last year...about a 5-7% total increase across the board, but each specific account was looked at individually to determine the amount of increase.

    I would say that a minimum 5% increase is necessary to continue making the same profit as last season.
     
  7. outrunjason

    outrunjason LawnSite Senior Member
    from dallas
    Posts: 703

    I was reading somewhere before I came across this thread that some were lowering prices?

    But to answer your question I raised my price by a buck. ( I don't do percentages as I don't have the brain power :) Which now I am even wondering if that was a good idea. I have done 4 estimates so far and everyone one of them was paying $20 bucks last year. I charge $27.06 with tax I told one guy and he said forget it I will call the company I had last year. I said well why are they not here this year. He said well they just don't clean up well but for that price I am willing to keep them.

    Well I am not a low baller but he didn't know we mow the house across the street from him so I offered him the same deal as the other company. $20 + tax. He said sure.
     
  8. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

  9. Mow Mony

    Mow Mony LawnSite Member
    from VA
    Posts: 229

    I am glad we do not work in Dallas. I realize the market is completely different, but our minimum is $35 for weekly service.

    I would stay stick to your initial price and just keep doing more estimates, and don't expect to close even 50% of them...unless need the work very badly. You dropped 30% off of your price by giving in for $20. Why not just start at $25 or $23 if you are willing to go to $20? So now what happens if you lose the lawn across the street? You are driving there to do only one lawn, which is under priced already. After gas and expenses, you are probably losing money on that $20 per cut lawn.

    Not trying to give you a hard time, but stick to your prices man, you are running a business, not flea market. It helps you, and the industry as a whole.
     
  10. outrunjason

    outrunjason LawnSite Senior Member
    from dallas
    Posts: 703

    I agree to sticking to the prices. But the truth is if I don't get the job the next Mexican guy will. So, I might as well take it. As for the neighborhood I have a house on every street pretty much so it really didn't make a difference to price match on it.
     

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