Rate increase?

Discussion in 'Pesticide & Herbicide Application' started by Landgreen, Jan 8, 2013.

  1. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 11,939

    Take a lesson from the professionals. Hide it by pretending it covers new improvments and features, like when cable TV adds new channels you never watch in foreign languages. (add a tiny bit of iron...or zinc.)
    Or like potato chips; bigger bag same price. ( less fert--cheaper nitrogen source.)

    So much the better if you have actually improved your program--better fert, better herbicide, wetting agent, partial organic ingredient, better guarantee, you took an educational course and learned more about grass fertility. Better equipment. Upgraded your computer and software. more...any suggestions?
     
  2. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    That going up every year will catch up with you in the long run..

    Company I used to work for has went up an average of 2.00 a year and sometimes as much as 5.00 One of their customers was almost 40.00 over their pricing sheet for the ccurrent year.. So new customers with the same size lawns would be 40.00 cheaper... LOL Its no wonder they are loosing customers due to price...
     
  3. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,046

    Totally agree

    If a lawncare co has to raise their prices every year then there is one of two things that are happening

    1) Their prices are or were too low
    2) They dont have a clue how to run their business

    If you look fert prices and fuel they are both about the same price or less then 2008.

    So why would you raise your prices in 2013 (and every year in between)?

    Glad we know how to run an efficient business and know how to buy. We have contemplated increases over the last two years but felt greed was the only reason and chose to stay where we were.
    I think the customer appreciates it and it pays off in the long run.
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  4. EquityGreen

    EquityGreen LawnSite Senior Member
    Posts: 395

    Everything else goes up in price. Why would you not raise your prices. My clients are thrilled to have us doing their work. There is only one other quality service in my area. I increase prices yearly. This year was less on average compared to years in the past. If you provide a quality service you should be paid more than the others get IMO. To each their own. Good luck to all in 2013 it will be our best year so far!
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  5. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466


    So no raises for employees,no increase in insurance,no other fee increases on your business? You just adsorb it every year/
     
  6. Will P.C.

    Will P.C. LawnSite Senior Member
    Posts: 965

    I would drop my fert company if they informed me of a 7% increase. I only pay 40 bucks an app which is a fair price for my lot. However, I could have a number of companies out here within the week that would do it for 35 with similar results. My current fert company is great, but they aren't the only game in town.
     
  7. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    ...And there you have it...from a Lawnsite member as well as some Fert & Squirt companies' customer. I do not raise my prices every year. Like someone else said, this will eventually catch up especially with your long time customers. Nothing worse than losing a long time loyal customer over the issue of price.

    Wanna look like a real schmuck?...try saving them by then offering a price cut for them to stay with you.
     
  8. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    Will how big is your lot?? Just curious..
    Posted via Mobile Device
     
  9. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,046

    Sure we have had some increase in insurance and we do take very good care of our guys.
    Few things here
    I hate to use this as an example buy look at Walmart. They r huge and can sell cheaper.
    Why?
    Volume
    So now if u had 2 lawns on a street back n 2008 and now u have 8 don't u think ur cost per customer/lawn has dropped.
    Posted via Mobile Device
     
  10. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,574

    I assume those raising prices every year are not primarily fertilizing companies.
    No matter how good of a service you provide there is a threshold of what someone is willing to pay. It is far cheaper to keep a customer than to market for their replacement.
     

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