Hourly Rate Increase

Discussion in 'Business Operations' started by domain311, Oct 10, 2010.

  1. domain311

    domain311 LawnSite Member
    Messages: 177

    Thanks for the reminder...I'm also not too ignorant or arrogant to ask questions and willing to listen to some reasonable feedback. Maybe I'm wrong but last I checked that's what this place is great for...
  2. the ace

    the ace LawnSite Member
    from usa
    Messages: 147

    We go up about 2-3% every year. Gotta keep those green backs comin' in.payup
  3. gonemowin1

    gonemowin1 LawnSite Member
    from MN
    Messages: 7

    I also occasionally do work on a time and materials basis. If you list an hourly rate in your contracts or proposals, just raise the figure when you send out your renewals. If you havent provided them a written price, just start qouting your new rate. I wouldn't make a big deal out of it by notifying anyone, most clients won't even notice.
  4. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,864

    I could think of a few reasons why a regular long term customer would know my labor rates and I often list my per man per hour labor rate in a clause on a contract, sounding something like this. All change orders and work performed beyond the scope of this agreement will be billed out at ...... per man per hour plus materials.

    Ahhh the old Labor rate increase letter......
  5. Roger

    Roger LawnSite Fanatic
    Messages: 5,929

    Some of the posts in this thread sound like the LCO is living in a time warp, somewhere in 2007 or early 2008.

    4CORNERS LawnSite Member
    Messages: 28

    Plain and simple, a good business man doesn't send a customer a bill with raised prices without some kind of notice. Lastly, why do some of you guys ask questions and advice and get it from guys who have been in the business for many years and then gripe? Grow up....just a little!
  7. AndyTblc

    AndyTblc LawnSite Fanatic
    Messages: 5,480

    my customers don't know my hourly rate. I just do that work and send them the bill with the final total.
    A lot of them if I told them the hourly rate they would crap their pants and try to feed me the "well minimum wage is $7.40, why are you working 5x higher than that". Then you have give them the speech about you have to pay for this that him her there and here. And chances are they probably still wouldn't understand.
    But the hourly stuff I do is the big leaf clean-ups. Or trimming tree's or bushes or mulch.
    But basically mowing, and the works are done as a set price each time.
    I don't let them know if I up my prices for the hourly, because each time is different, usually it's whatever I feel like charging that day. The more grumpy I am the more they get charged. But trust me, I make money no matter what I charge.
    But if I do up my prices for mowing, it is done at the beginning of the year, and I send out a letter before hand stating this is whats gonna happen.
  8. Fresh_Cut

    Fresh_Cut LawnSite Senior Member
    Messages: 327

    Do you use contracts?

    Or do you just call all your customers at the start of the season to see if they will need you that year?

    I'm trying to find out how these "handshake" LCO's work
  9. DanaMac

    DanaMac LawnSite Fanatic
    Messages: 13,171

    Since I am strictly irrigation service, all of our charges are hourly. No set bid price, no contracts, work done as needed. If someone calls for sprinkler work, I get them on the schedule. If they are new customers I tell them the price. If they are existing customers, they already know approximately what we charge, and unless they ask, I don't tell them about any rate increases. They know and trust our experience and pay the bill. Some people are shocked at what we charge, and some would still be shocked if I charged $25 per hour less.
  10. khutch

    khutch LawnSite Senior Member
    Messages: 495

    So next year your $40 yard is $40.80????

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