Scared me!

Discussion in 'Lawn Mowing' started by Patfo, Mar 9, 2001.

  1. Patfo

    Patfo LawnSite Member
    Posts: 36

    I'm going in full time this year-quitting my regular job after months of soul searching. I have my letters stamped, sealed, and ready to mail mentioning price increases. Some of my long standing customers whom I haven't raised the price on some for 5 or 6 yrs I'm not concerned about the price increase. My customers who I just picked up last year I'm worried about. After reading the post about guys getting dropped for .50-.75 increase I'm considering opening the envelopes and reducing the increase if increasing at all. Example of increase: $25 up to $27 and $35 up to $38. I cannot afford to lose anyone at this point. I mentioned in my letter the primary reason for increase was prediction of high gas prices this summer. Should I play it safe and redo my letters or stick to my guns? Any feedback from you guys who have been through this is greatly appreciated as this is my first price increase! THANKS!
  2. accuratelawn

    accuratelawn LawnSite Senior Member
    Posts: 922

    I raised prices on all accounts 90+. I lost two.
    If each lawn was increased $3.00, do the math. I will keep current accounts an earn new ones by providing great service.
  3. Jerrys Lawn Service

    Jerrys Lawn Service LawnSite Member
    Posts: 155

    Patfo,stick to your guns, most people won't have any problem with two dollars. Besides after five years you deserve it!

    Good Luck!
  4. Patfo

    Patfo LawnSite Member
    Posts: 36

    The customers I've had for 5 yrs. I'm not worried about-it's the ones I picked up last year that I'm worried about! Thanks!
  5. Mitchell

    Mitchell LawnSite Member
    Posts: 28

    Raise em up! I did and did not lose one customer. Just do it tactfully, and be sure to add "We want you as our customer and if any problems please call #"
  6. David Hickerson

    David Hickerson LawnSite Member
    Posts: 40

    Raise Those Rates..

    I like the $5 dollar incriments. I am happy when people say "That is to much". It gives me the opportunity to sell myself and my services that I offer. I lost 3 yards this week that I had when I first started. I was happy to see them go so that they can be replaced with real paying customers. Get in the game and run your business or the customers will run it for you.

    When I first started 3 years ago I was scared to tell a customer no or would take there bid. I have learned that if you do not like my price I will wait for the phone to ring and I bet they will like my price.

    Stay away from explaining in detail for cost increase.
  7. kutnkru

    kutnkru LawnSite Silver Member
    Posts: 2,662

    If you are not the most expensive or towards the top rung of the ladder in price than I would consider re-organizing your operation to work more efficiently.

    If you are not than you have been serving your clients long enough for them to know that it had to happen at some point. We are in a service industry and 5% per year is not uncommon for clients to receive as a price hike to compensate for the rising fuel costs, and inflation, etc.

    I think that as long as you worded your letter to them compassionately that there should not be a problem. If you were abrupt in your mannerisms, than you might want to re-word it.

    Will you loose a few clients, - probably. Will it be the end to your client list, - nope. Is this going to be a frieghtning experience for you to undergo, - yep.

    We have all been there and continue to travel down this path.

    Good Luck and best wishes this season!

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