raising prices

Discussion in 'Starting a Lawn Care Business' started by PicturePerfect, Jun 22, 2004.

  1. PicturePerfect

    PicturePerfect LawnSite Member
    Posts: 25

    How would you go about raising prices because you realized you under bid.

    I acquired these properties when I started out about 1 1/2 years ago. We only have a verbal agreement.

    The properites are 11 fast food resturaunts. All owned by the same man. In the agrement, I maintain the entire property for a regular rate for 44 visits per year. Included is mowing up to 36 times, 200 annual flowers per store, clipping shrubs, weeds in beds and maintaining the mulch.

    This is my first full year for all 11 stores. So far I am at about $28 per hr, in a 2 man operation. I would like to be closer to $40.

    Any help would be appreciated.
  2. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    Type up a nice professional letter explaining the rising prices of gasoline and insurance. Write in the later how you spent alot of time thinking of ways to defray costs but were unable to and are forced to raise pricing. Hope this helps.
  3. PicturePerfect

    PicturePerfect LawnSite Member
    Posts: 25

    Thanks, I was hoping I could justify the increase for those types of reasons.

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    If you are saying $28 per hour for both men( 14 per hour for the work)Than you must raise the rates. I would have a tough time working a job at $40 per man hour.
    You do not have a contract, right? Just verbal. and that is 1 and 1/2 year old than I don't see much problem in raising the rates. Like eastpro said " costs are going up" If you are not making profit now and you lose the job because of this, than so what, as you now have time to get better paying jobs. To many of us take no profit jobs when just starting, to get going. Once you start working full time go after good paying stuff and drop the non-profit.

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