when to notice customers about price change

Discussion in 'Business Operations' started by Kings of Green LLC, Nov 19, 2012.

  1. Kings of Green LLC

    Kings of Green LLC LawnSite Member
    Posts: 146

    i purchased a lco in June and some of the customers prices had not been raised since 2004! and there others that i feel are not up to fair market price. my question is when is a good time to notify these customers of a price increase? now as the season ends or sometime before the 2013 begins? would a letter be adequate or phone call be more personal?
     
  2. Ben Bowen

    Ben Bowen LawnSite Bronze Member
    from PNW
    Posts: 1,053

    I look to give the client enough time to decide what they want to do- but not too much time. A letter two weeks prior to the first service date would suffice.
     
  3. Kings of Green LLC

    Kings of Green LLC LawnSite Member
    Posts: 146

    thanks for your thoughts. but will this give me enough time to replace those that i loose?
     
  4. grandview (2006)

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

    Do it now so they know and you know how many you might lose. Or do half for 2013 and half in 2014.
     
  5. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,519

    I like to do it at the big inning of the year if possible. Usually in janurary. Be careful to work it around the Holidays. Often things get lost or pushed to the back burner.
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  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    If you know prices have not increased since 2004 then I would add some AMMO to your notice.

    Mention Gas prices in 2004 verus today and how that is a significant part of the operating expense. Mention the CPI increase from 2004 to 2012.

    Oct 2012 CPI 231.3
    Jan 2004 CPI 185.2

    Diff = 46.1 / 185.2 = 24.9%

    Good Luck
     
  7. Kings of Green LLC

    Kings of Green LLC LawnSite Member
    Posts: 146

    Thanks again guys. Do you think a letter is okay or should i go door to door
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  8. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,467

    If you just bought the business Id wait a year till you get to know the customers better.
     
  9. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,519

    You could also put some upsale services in there

    Also may describe what the person is getting. If the old guy charged 30 for mow blow go but you charge 40 and you also pick up sticks or pine cones in the beds it will make the increase easier.

    You also need to show them the quality of your service. It will be hard to buy a business and them ask for price increase right away
    Posted via Mobile Device
     
  10. Kings of Green LLC

    Kings of Green LLC LawnSite Member
    Posts: 146

    I puchased the business in june it came with 65 customers. So far i have only lost 6! I feel they trust me and know that i do quality work. I have 10-12 properties that need raised so even if i loose 50 percent of those 12 it won't be to bad but still want time to replace those i do loose
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