when and how to raise prices

Discussion in 'Lawn Mowing' started by Drew Gemma, Mar 22, 2005.

  1. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    Ok when do you think the best time is to send a letter to your customers stating about your new price increases. What time of the year and why do you think that is the best time. I basically just want to do at the right time to limit the drop outs.
    Second how do you guys do increases a percentage or a flat fee. Which is a better sell to the customer. thanks
     
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I do a flat fee in june or july. Its busy here then, but far enough away from the slow season that they forget about it by the time things slow down.
     
  3. Green & Clean

    Green & Clean LawnSite Member
    from Utah
    Posts: 25

    Some years ago, we had another business with over 600 customers.

    The first time we raised our prices, we sent out a letter explaining the increase - increased fuel costs, increased insurance premiums etc.
    We received many, phone calls and complaints, and about 20 customers
    quit using our services.

    The next time we increased our prices, we did not send a letter explaining the increase, we just added the increase to every bill.

    We only received ONE phone call from a customer asking if we calculated their bill correctly.

    My 2 cents - don't point out the increase.

    If your prices remain the same, Put that in a letter.
     
  4. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    is it right to raise prices and not tell customers not sure about that but if it works hey worth a try.
     
  5. LUKESLAWN

    LUKESLAWN LawnSite Member
    Posts: 1

    Bill Them But Don't Tell Them About The Increase.
    I Did This Last Year Due To Gas, I Received About 7 Calls Out Of 100.
    5 Of Those 7 Agreed To The Price Increase. 2 Did Not And I Kept There Price The Same.
    98% Not Bad
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    i agree, don't make an issue out of it, and niether will they. is it right to raise fees without an explanation? YOU HAVE THE RIGHT to do ANYTHING you have to, within the law, to make YOUR business succesful
     
  7. jpp

    jpp LawnSite Silver Member
    Posts: 2,128

    I agree the prices do need to go up with our rising costs. I disagree with the manner in which some of you pointed out. You should notify your customers of the price increase. If you loose some then so be it. Then you need to really look at why you lost them. Is it really because of the price increase or the service you gave. Sure you will have others shop around for better prices. If the customer is satified with the job you are doing then a price increase normally will not result in losing the customer. If you are giving them so so service the price increase could be the last straw.Raising prices and not telling could mean a bigger lose of customers then you want.
     
  8. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    When? Now.

    How? With an iron hand. (Watch Seinfeld "Soup Nazi" for pointers).
     
  9. LawnScapes of P-Town

    LawnScapes of P-Town LawnSite Member
    Posts: 27

  10. WoodBrothersLC

    WoodBrothersLC LawnSite Senior Member
    Posts: 418

    We recently told all of out customers that we were raising the prices by $2.50 for any service that we did from mowing to limb cleanup. No one complained! We even had a handful of people say to us, we understand it is necessary and it won't hurt us a bit to pay that. We have 27 yards and if you said the average yard was $35 and added $2.50 to each one every week, then you would make an extra $67.5 a week which should easily cover the rising gas prices for part timers like us every week with some left to spare. The more yards that you have with a $2.50 increase, the better!
     

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