most contracts have cancellation clauses with notice as well, so nobody is forced to stay really. Usually you need to give a month or two notice so they can find someone. They could always cancel with the price increase.
Had a customer text me the other day wanting to "renegotiate her price" she felt she was "paying too much" and "not getting her money's worth". I replied that next season your price will increase by a minimum of 10% but possibly more and considering I am raising prices across the board I'm not going to lower or "renegotiate" at this point. But for $10 less I would be willing to finish out the year by cutting only her front lawn. We won't touch the back (it's an absolute crap hole that takes 50% of the time). That upset her to say the least. A day later she takes the deal. Go figure.
Im sure he knows his clientele but raising the price twice in a month is not a good business move in any event. It’s not necessarily about the money at that point, just sends mixed signals. One 15% raise would have been much better.
Price increase mid to late season is already not ideal, but given the times we are living in can be justified. I always waited until the next season to raise prices, but I sold my lawn accounts prior to COVID, and things are different now so I can see why one would.
Outside Pride raised the seed priced 20% about 1.5 months ago and then another 25% less than 2 weeks ago on 50lb bags. Not sure if I'm buying seed from them this year. Went from $99/bag to $120, then to $150 when I looked 2 days ago
I've also had other customers, spray customers, go ahead and ask me if I was going to raise prices next year to which I said I'm having to look at that. And all that said this also said something like "hey we understand the price of everything is going up so if we need to pay more we will pay more ". You can't buy this kind of loyalty. I appreciate my customers.
Had a lady ask me several times this year to cut of her rentals every time I told her my price is the same. She kept telling me how bad her back was blah, blah, blah. She finally gave up. Have a customer that raised her monthly price by $20 bucks a month because she felt I was being underpaid. Like @kemco I love the loyal customer. But the price shoppers drive me up a friggin wall.
Good point. I price in travel to each lawn or job. So including travel we can average $60 per man hour when all is going right . That’s using 1 stander and 1 walk behind. Once I put the ztr in rotation instead of the walk behind … it jumps to $65 per man hour easily.