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How do you price a renewal contract??

Discussion in 'Lawn Mowing' started by KenH, Jun 21, 2003.

  1. KenH

    KenH LawnSite Bronze Member
    from CT
    Messages: 1,622

    I am doing a condo for the first time this year. They want me back next season. Is there a certain percentage the contract price should be raised?? What is the cost of living increase?? 3%?? Thanks

  2. I would lock them if with the same price for the 2 years, then if you can get another year add the 3% on then.
  3. I agree that is what we do.
    We offerr a 1 year contact to start then at renewal time we offer them a 2 year contract at the same price per year.

    At the next renewal (they have now been a customer for 3 years with out a price increase) we jack it up 3-5%.

    Also dont forget about our $2.00 a gallon gas prices. I 2 years it might be $3.00 a gallon. So we addeda gas surcharge option (Just like UPS did). Contract says we may add up to a 3% gas surcharge if needed.
  4. KenH

    KenH LawnSite Bronze Member
    from CT
    Messages: 1,622

    Im not sure if I can justify not raising my price AT ALL next year. After all, my insurance will go up, as well as other incidentials. I think the 3% sounds good per year.

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