raising prices

Discussion in 'Lawn Mowing' started by adamc6, Mar 20, 2003.

  1. adamc6

    adamc6 LawnSite Member
    Posts: 50

    what is the best way to tell your customers you are raising prices this year? and also, how much are most of you raising prices on average this year. Thanks for your time.

    ADam
     
  2. CNYScapes

    CNYScapes LawnSite Senior Member
    Posts: 916

  3. ConPro

    ConPro LawnSite Member
    Posts: 116

    5-10%, try to throw it at them when they're happy.
     
  4. jkkalbers

    jkkalbers LawnSite Member
    Posts: 144

    We raise prices every other year so we can always say, I didn't raise you last year, so I need to bump you up a little this year. When we do raise prices, it's only half our customers then the next year we do the other half. We are always bumping up half our customers. works well for us. and people don't complain because they expect to be raised every so often.
     
  5. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    Let me get that straight.

    You raise prices every other year and then when you do raise them it is only done to half of your customers?
     
  6. jkkalbers

    jkkalbers LawnSite Member
    Posts: 144

    Yes raise half one year then half the next so everyone gets raised every other year. What don't you get.
     
  7. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    Well you stated that you raised every other year but you don't you raise every year but only half of your customers.

    I misunderstood it sounded like you raised every other year and then it would only be on half of your customers.

    I get it.

    Adrian
     
  8. jkkalbers

    jkkalbers LawnSite Member
    Posts: 144

    ok sorry for the miswording, I was holding a baby in one arm and probably got distracted.
     
  9. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    No problem...Thanks for the info...sounds like a very practical method of increasing prices that would be easy to implement.


    Adrian
     
  10. IndyPropertyCare

    IndyPropertyCare LawnSite Member
    Posts: 201

    Adam...factor this into your expenses. Is it res or comm ? Res you should only increase 1.5% to 3% depending on the market area. Comm. you should increase 2.5% to 6% based on the market area. This is very effective expense recovery forecasting and honestly, if they are annual contracts then the increase is not valid unless your overhead expenses increase. There is alot you should learn about business management honestly, try taking some night courses and get a feel for the office side of ANY business. Those who manage their businesses effectively have the highest profits... Oh gezz, sorry was standing on podium :blob1: you get the point... good luck and learn all you can.
     

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