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Best time to raise prices...

Discussion in 'Lawn Mowing' started by Bassman, Oct 11, 2002.

  1. Bassman

    Bassman LawnSite Senior Member
    Messages: 270

    I've been at the same price structure on my annual accounts for over 2 years. I need to increase most of them to some degree, probably 10% on average. Like everyone, I'm just finishing busting my arse for the summer growing season. Although I'm regularly turning away new biz as I have about all I can handle, I don't think going into the less work intensive fall and winter season is the right time to raise price on my year round customers. I think I should wait until just before the late spring/summer busy season in 2003 to do so. That way if I have any jerks who have received great service but want to go with someone else over a few bucks, I will have coasted over the non grueling part of the season, (going to bi-weekly visits Nov. thru March), which is much deserved after the summer. What are your opinions? Appreciate comments as always. Thanks.
  2. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    Definitely a good idea to wait until spring or so to do this. Wait until business is booming and then if you lose a few because of the price increase, it doesn't really hurt that bad. Losing them in the fall (or winter, if you do year-round accounts like we do) really sucks.

    We have a nice letter for this situation if anyone cares to borrow it - feel free. It's below.....

    Attached Files:

  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    We raised prices on some of our less profitable accounts this year to get every resi up to a "minium" ... of those 20 accounts raised we lost 1 .... raise 1/2 in June n the rest in July ... both with 30 prep letter (not to drop a bomb) ... this spread out the possible lost (which was not there)

    I always like to explain to em it's 42 visits yearly .... don't forget the 3 months in summer when you gave 5 cuts for the month (our Tues-Wen-Thurs day jobs get 5 cuts in October !) n the 2 months in "winter" when they get 3 cuts (long as you stay on a regular bi weekly schedule)

    Though we dream of the "dormant season" .. 3 weeks to go !!
  4. Bassman

    Bassman LawnSite Senior Member
    Messages: 270

    Thanks Jim for the letter. It will be very helpful.
    And Steve, I'm also looking forward to the off-season break. Just 19 more days! I'm about burnt out from the long summer. (It was 93 degrees yesterday, tied the temp. high of 1959 for Oct 11). Cold front coming next week in FL, can hardly wait.

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