I think mid-season is the best time to do it. We just inclose a note on their invoice that says a increase of "X" will appear on their next invoice. No problems

 

I think mid-season is the best time to do it. We just inclose a note on their invoice that says a increase of "X" will appear on their next invoice. No problems

nope. sucking it up till next year.

 

new customers are getting the increase but old ones I am waiting...

Then again, the whole program is changing next year... I am just wandering do I give the old customers the option to stay the same or do I just switch everyone to the new program?

 

nope. sucking it up till next year.

Same here. Although I have had a few ask me why I haven't gone up. My biggest problem with it is I have a substantial amount of prepays for the season. I can't increase their price and to me it's just not fair to increase prices unless I do it with everyones price. RC, you have a PM from me

 

Same here. Although I have had a few ask me why I haven't gone up. My biggest problem with it is I have a substantial amount of prepays for the season. I can't increase their price and to me it's just not fair to increase prices unless I do it with everyones price. RC, you have a PM from me

I agree as I thought of that about prepay customers...but maybe that is a good reason to do it!

I don't really want to encourage prepays as I lose 5% (theoretically) but it is great for cash flow.

Next year you could say...if you prepay you lock in your price for the season, but if you don't prepay you are open to in season increases.

I don't know! Just thinking of a way to recoup some of our increased costs.

 

I agree as I thought of that about prepay customers...but maybe that is a good reason to do it!

I don't really want to encourage prepays as I lose 5% (theoretically) but it is great for cash flow.

Next year you could say...if you prepay you lock in your price for the season, but if you don't prepay you are open to in season increases.

I don't know! Just thinking of a way to recoup some of our increased costs.

Could be a good thing on the lock in idea for 2009. That would kind of cover the possibility of a mid season increase.(letting the customer know about that possibility at the first of the year) One major flaw in my opinion. I don't want all my money up front. I like "cash flow" not "cash flood". It's nice to have some coming in all the time instead of all at once. Hard to say what would be the best way to handle that!

 

I've done an increase, but it was substantially more than 2%. My raw material cost on fertilizer has now literally doubled since the beginning of the season. I started this season at around $530/ton out the door, and I am now at just over a thousand. A $60 application now COSTS me $39 just in material, and that is before a single weed is even sprayed. Now, put on ful, machine use, administrative costs, licensing, insurance, storage and handling, utilities, phone, and misc. expenses, and where is the margin? If I didn't increase the prices, I would have been making more money mowing than doing aps. My new prices for these particular sized lawns is around $80, and that doesn't put anyme money in my pocket than what I WAS making. The customers have been vary receptive and understanding when I explained this to them, though. Hey,...they can't go, buy it themselves, and do it any cheaper themselves, either. Thank goodness the stores have raised their prices on their quality ferts, as well. IWhen I explain this to them, I convey the message that for 25-30 dollars, they might as well have it done, done right, AND all their weeds are taken care of. This is not to mention that their lawn is continuously monitored by a knowledgeable professional for any other potential problems as well, whoich is invaluable. I hope this little "speal" helps some of you guys, as well.

Now, what SUCKS, is that the market is so unstable that we have NO idea what we'll be looking at next year...this includes the month of July. we could be paying $45 a bag, for all we know for an average blend. How the eck do we make a sell on THAT in the spring! I might just have to start a price rate of MY SERVICE, and go around the material costs, all together. In other words, all the customers will have a price index based on the market material costs.

 

I've done an increase, but it was substantially more than 2%. My raw material cost on fertilizer has now literally doubled since the beginning of the season. I started this season at around $530/ton out the door, and I am now at just over a thousand. A $60 application now COSTS me $39 just in material, and that is before a single weed is even sprayed. Now, put on ful, machine use, administrative costs, licensing, insurance, storage and handling, utilities, phone, and misc. expenses, and where is the margin? If I didn't increase the prices, I would have been making more money mowing than doing aps. My new prices for these particular sized lawns is around $80, and that doesn't put anyme money in my pocket than what I WAS making. The customers have been vary receptive and understanding when I explained this to them, though. Hey,...they can't go, buy it themselves, and do it any cheaper themselves, either. Thank goodness the stores have raised their prices on their quality ferts, as well. IWhen I explain this to them, I convey the message that for 25-30 dollars, they might as well have it done, done right, AND all their weeds are taken care of. This is not to mention that their lawn is continuously monitored by a knowledgeable professional for any other potential problems as well, whoich is invaluable. I hope this little "speal" helps some of you guys, as well.

Now, what SUCKS, is that the market is so unstable that we have NO idea what we'll be looking at next year...this includes the month of July. we could be paying $45 a bag, for all we know for an average blend. How the eck do we make a sell on THAT in the spring! I might just have to start a price rate of MY SERVICE, and go around the material costs, all together. In other words, all the customers will have a price index based on the market material costs.

My inputs have increased as much as yours since this time last year but they had already increased quite a bit by the first of 2008. I raised my prices 15% thinking that would cover things. I did to a point. I've reached that point plus a little and it has left me no better off than I was last year at this time. That increase did help me keep from having to raise my prices mid season but there's no question I will have to increase again this coming year. How much...who knows? I am scrambling right now to rethink, rework and tweek everything related to my program. I am also going to try to buy as much as I can,( as far as supplies go), this year for the 2009 season. I know what prices are now...who knows what they'll be by next Spring...Summer? It's enough to give a person a nervous breakdown

 

Well,...if it is any consolation to you,...EVERYone is going to have substantial increases next,...across the board including the big green companies and franchises. What is going to happen, is everyone (industry customer base) is going to be making calls to all the other service providers when they get their new prices in the spring. Of course, once they learn that everyone ELSE is in the ballpark of their previous services' new prices, they will probably just stay. Yes, even many of your customers may be making some calls, and I am confident that many of mine will be, too. The prices however, will be pretty straight actross the board. I WILL be selling high next year, though. I thought our local scotts franchise was pretty high this spring with their quotes, but atleast they were safer in their costs. They have done an increase on their rates for new customers, anyway, as well. There is another thead in here nearby that discusses their pricing they sent us a few weeks ago.

 

nope. sucking it up till next year.

I also try to stick it out until the next year. Thats if I didnt put my hole leg in my mouth!!

 

I also do the new customer gets the increase...existing customer is locked in for the year method.

 

Same here. Although I have had a few ask me why I haven't gone up. My biggest problem with it is I have a substantial amount of prepays for the season. I can't increase their price and to me it's just not fair to increase prices unless I do it with everyones price. RC, you have a PM from me

Exactly. Same issue here.

 

Yeah,...the pre-pays are off limits.

 

Yeah, we do commercial accounts so mid season price increases do not shock them quite as much. Next year we are doing a materials surcharge depending on how prices are. We are also giving strong look at going the blended route or flat monthly fees for services and then deciding what to do then.

I know that is a little confusing.

Matt

 

I am going to enclose a photocopy of what my distributor charged me per bag for the winterizer this year vs last year after a fertilize my lawns-I'm expecting at least a 50% increase from last year. I will also tell my customers that I cannot give you a service agreement until early next spring, because the fert market is so erratic. With these large price increases, basic psychology says people will come to expect close to perfection with their lawn care...people who never complained about a few weeds will be calling in to complain, etc. In 2009 the big companies will probably water down their apps and like this year substitute lime for an app.

 

or just skip an app all together... just makes the sell for me that much easier. The "big box" companies are already my #1 source of new customers... I get phone calls straight through the year from customers who currently have TG and are sick of them... I am happy to step right in...

It just amazes me the poor quality of work they do... I wouldn't be able to sleep at if that was my company... I wander how many times they get sued by people who catch them in the act per year?

 

or just skip an app all together... just makes the sell for me that much easier. The "big box" companies are already my #1 source of new customers... I get phone calls straight through the year from customers who currently have TG and are sick of them... I am happy to step right in...

It just amazes me the poor quality of work they do... I wouldn't be able to sleep at if that was my company... I wander how many times they get sued by people who catch them in the act per year?

I was told today by a reliable source that the one and only TG branch in this area based in Little Rock was fined a couple of weeks ago for sending guys out in trucks with no "agents cards" and none of the Chem concentrates on their trucks were labeled. Some corporate Fat Cat is writing a check to the State of Arkansas to the tune of $55,000. I wonder if the Branch Manager lost his job over that one? I just felt terrible when I heard about it...NOT!:laugh::laugh::laugh:

 

I was told today by a reliable source that the one and only TG branch in this area based in Little Rock was fined a couple of weeks ago for sending guys out in trucks with no "agents cards" and none of the Chem concentrates on their trucks were labeled. Some corporate Fat Cat is writing a check to the State of Arkansas to the tune of $55,000. I wonder if the Branch Manager lost his job over that one? I just felt terrible when I heard about it...NOT!:laugh::laugh::laugh:

No label on a bottle of concentrate? If that was a transfer out of an original container as well, would not expect them to still be in business in the State of Hawaii. A willful violation of either the label or the regulations is cause to revoke certification. There are two companies I do not expect in Hawaii any time soon: JD Lesco or TG. I doubt either of them could follow the law here to stay in business.