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Customer can't afford price increase

Discussion in 'Lawn Mowing' started by South Florida Lawns, Jan 22, 2010.

  1. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Messages: 4,784

    I have a customer that I have been servicing since 2000, and just recently for the first time increased their rate 5%. This would be for the first of January, I just received payment late with a note saying they can't afford the increase right now and payed what I have been previously charging them.

    With all that being said they are good customers that pay almost always on time, and are in a row of about 20 yards I maintain. I would like to keep them but its about time they start paying more for my services.

    How would you handle this situation? Let them slide for a few months and raise price during summer? Or argue about the fact everything else is going up and you have to charge more.

    I know my price and its about time for a rate increase.
  2. WHIPPLE5.7

    WHIPPLE5.7 LawnSite Senior Member
    Messages: 958

    Ask them if they are willing to keep your services if you postpone the increase till mid season. You wouldn't want to lose one close to other work like that unless you really had to.
  3. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    Wow........they are upset for a 5% increase and its the only raise in 10 years!
    I would just go over there and talk with them. It may be true and it is a bad timing for them for some reason, but I would have to know why and it better be good, sense you have never raised them sense you started and not to mention that it has been 10 years....That's crazy

    ......and if it was not convincing, I'd be :walking::walking::walking::walking:
  4. mowerbrad

    mowerbrad LawnSite Fanatic
    Messages: 6,268

    Like JayD said, I'd go over and talk to the customer and see what the situation is. Maybe you can work with the customer and raise the price later in the season, when maybe they would be able to afford it. I would hate to lose an account over a 5% increase, but yet it really shouldn't be that big of a deal to the customer anyway. On a $1000/year account, that 5% is only $50 more for the year. It seems a little rediculous to make a "fuss" over a 5% increase.
  5. torotorotoro

    torotorotoro LawnSite Senior Member
    Messages: 510

    every one should get raised every year.if they have a problem with it you dont need them.if you do a good job im sure you can find a new customer near by who will be happy to pay you more.
  6. JayD

    JayD LawnSite Silver Member
    Messages: 2,062

    WHAT THE HECK IS THIS MAN?:hammerhead::hammerhead::hammerhead::wall:wall
  7. gtmorgan89

    gtmorgan89 LawnSite Senior Member
    from East TN
    Messages: 318

    They could afford it if they "WANTED" too.
  8. FYS777

    FYS777 LawnSite Silver Member
    Messages: 2,305

    10 years for no raise? 3 years ago had to raise prices because of fuel was at almost 5 dollars a gallon. sense then has drop by two dollars a gallon at lest. haven't raised prices sense. we put a clause in our service contract that if product cost raises we may have to raise prices, so far we haven't had to.:)
  9. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Messages: 4,784

    This customer is really starting to rub me the wrong way the more I think about it. I'm half tempted to chew the guys ass out not even caring wether I lose the account or not.
  10. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Messages: 1,170

    I'd work with him real nicely on it. You dont want to loose him to someone else cheaper because others might start changing also.

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