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How to raise prices?

Discussion in 'Starting a Lawn Care Business' started by quietone, Mar 6, 2007.

  1. quietone

    quietone LawnSite Member
    Messages: 39

    We need to send out a letter to raise our mowing and fetilization prices. Does anyone have a good one to share? Or is there a good place to get a format for this kind of thing. Thanks alot.
  2. Young Lawn Boy

    Young Lawn Boy LawnSite Member
    Messages: 53

    ya i need help with this too
  3. Mow2nd-2

    Mow2nd-2 LawnSite Member
    Messages: 178

    just simply write a letter stating that due to gas prices and material costs rising that you have no choice but to raise your rates and include the new price for them, and include the letter with your monthly billing.
  4. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,452

    Actually do you really want to raise the price at a time when customers are getting door hangers constantly? I got one day for $26.99 and they cut with 21" units.....a rather large company!

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Yes...for that reason I have only done price increases in mid-season when they least suspect it, and actually have to put forth some effort to find another LCO if they really don't like it.

    I'm not a big fan of 'justifying' an increase with the ol' "due to rising gas and materials prices, etc. etc." People are not stupid enough to think their price will never rise. Most of them will accept a modest increase with no problems.
  6. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I tried several methods of doing this, and in the end found what works best is to just resume services at the new price without further ado, just leave the bill as usual with the new price.

    Because the electric co does it like that too and McDonald's dont ever send me no letters to let me know lol

    But I've done the informing the customer thing in the past, and found if you go this route, the best way to do it is to ask the customer if they would mind a little increase (some will, others will gladly pay you $5 more, it works out).

    Either way.
  7. ProMo

    ProMo LawnSite Bronze Member
    Messages: 1,468

    I usually tell my customers in person and wait until the growing season is in full swing and it rains everyday.

    GELAWNS LawnSite Member
    Messages: 66

    We also send increase letters out during the busy season. We sent them out to a third of our customers in June, then July, etc. We included their next month's bill showing the increase. We looked at each account and adjusted them individually instead of an across the board percentage increase. No one canceled, but a few called to see if we could do a few extra things for "that kind of money". Our letter referenced the increased pricing in gas and parts too.
  9. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    I'm guessing that you guy who are raising prices don't have contracts/service agreements in place. If that is true then you can do as Topsites said and just send the higher bill.
  10. HOOLIE

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Why would a service agreement prevent the LCO from raising prices??? You just send them a notice letter "Effective 9/1/07 your mowing price will be $xx.xx"

    Just because they signed the initial agreement with the original price doesn't mean you can't change their price.

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