how do i raise the price of a lawn with losing it??? Need help PLEASE!

Discussion in 'Starting a Lawn Care Business' started by DillonsLawnCare, Sep 4, 2007.

  1. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Messages: 1,100

    ive got a lawn and i cut it about every week. the guy pays me by the month. some other pros were cutting it last season and then they never called him back, thats what he says. so i asked him how much did the other guys charge for the lawn. he said $45 bucks. so stupid me said ok and didnt try and raise the price on him cause i was desperate for another lawn.:hammerhead: well push came to shove and i realized that an acre with trees galore and lots of weedeating really costed about $60 to $70. from $45 to $70 is a big change. i dont know what to do.:cry: can anyone help me. thanks
  2. Bigray

    Bigray LawnSite Member
    Messages: 140

    1) finish the season then over the winter send him a price increase letter.

    2) send him a price increase letter now and hope for the best

    there no easy / sure way to increase prices without some fallout, part of being in business.
  3. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Messages: 1,100

    i was thinking of dropping him and getting another lawn. would this work better? or i could drop him and sell the lawn to someone else...... i would rather say it to his face than to send something in the mail, cause that seems like im trying to avoid something or afraid. and also i dont think hes gunna have a problem going up on the price cause he owns like 4 companies with like 40 mexicans and pays me in cash at the end of the month. but i gues i shouldnt assume. oh and hes korean and doesnt speak fluent english....but he can speak fluent spanish!!!.....dont get it.. some more advice please! thanks
  4. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    what advice do you need? you just said you dont think it is going to be a problem. are you worried about him? or are you worried about you? go see him and politely tell him you need to charge this amount for continued service. Have confidence and always put yourself and the health of your operation first. Be prepared to walk away.
  5. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Messages: 1,100

    alright. the advice i need is should i drop it and find another yard or should i keep it and risk going up on the priice.??
  6. Runner

    Runner LawnSite Fanatic
    Messages: 13,497

    I don't know....An approximate 50% increase may be a hard pill to swallow. take the attitude right now that it is a loss (of account). This way, when you approach the customer on it, you just have to let him know, that is the only way you are going to be able to continue to do it. Explain that it may seem like a rather large increase, but to maintain the quality of service that you do, this is the only way. Let him know that if he DOES wish to discontinue service, that you understand, and that he has been and is a valued customer to you. Also, stay on good terms with him. What MAY happen, is that he stops you for someone cheaper, and guess what happens when they do that? - Yep,...they get cheaper. He may be calling yo back in the spring -= changing his mindm because atleast he knows what he was getting. If you don't hear from him, you contact him. All he can do is say no. I have more than I can count of customers that had to be dropped - and then picked the service back up again. Good luck with it.
  7. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Messages: 1,100

    thanks Runner for the advice. ill try it out. i find another lawn just in case!
  8. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Messages: 3,758

    The way I do these is I talk with them face to face, don't like sending letter for stuff like this. I explain nicely that "I'm sorry, but I can no longer do your yard for agreed price and there will be a price increase. However, I hate to say this but I everytime I do this I usually lose the yard. I have lost over a 5 dollar increase before. However, if you keep doing it you will grow to hate the yard. Either increase it or cut it lose. But always thank them for using you no matter what happens. I bet the other guy was not doing it for 45 or either thats why he is no longer there. BTW, NEVER go by what the other guy charges, you figure your own price. Don't care if you are higher or cheaper its your biz.
  9. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Messages: 1,100

    thanks for the input qualitylawncare4u, thats what ill do.
  10. HOOLIE

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I've been in this situation a few times, where for whatever reason I grossly underbid the job, and come to find out quickly that it's not working out. I just talk to the customer...everyone goofs on an estimate from time to time. Honestly most of them cancel but I think they appreciate that I took the time to discuss it with them. You never know, if the guy likes you enough he may go with the increase.

    If the price is WAY too low, then it's WAY too don't want to keep doing it at that price, so really a win-win situation for you, either more money or you lose a poor account.

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