Increasing Fees

Discussion in 'Business Operations' started by Mrs. Landscaper, Mar 26, 2002.

  1. Mrs. Landscaper

    Mrs. Landscaper LawnSite Member
    from PA
    Messages: 6

    What are your experiences in increasing your fees to your regular customers...i.e. your hourly rate. Do you notify all regular customers at beginning of the you send a letter or note... or just show increase on first bill....??? What reactions have you had. On average, how often have you increased fees, yearly... every so many years, etc.??
  2. Ground Master

    Ground Master LawnSite Senior Member
    Messages: 505

    I send each customer a letter in spring that shows prices for the upcoming season. I review each customers account and raise prices on just about half (give or take) each year.

    I don't know off hand if i've lost any by raising prices, but I'm sure it has happened, i.e. they don't call and tell me that I'm fired.
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    I haven't had a problem raising prices (small increments) for the last couple of seasons. Could be my prices were too low or my work is outstanding and they do not mind paying a little extra. Maybe both?

    I try not to raise prices during the season..

    Here's a little something on raising prices.. may or may not be useful..
  4. LawnLad

    LawnLad LawnSite Senior Member
    Messages: 738

    We send a letter each spring with any contract updates, much like an addendum to their original contract/agreement.

    We list our labor rates for the upcoming year. Our rates have gone up from $23 to $25 to $28 to $30 for general labor over the last 8 years. Different people respond differently to your prices. In part depending on their motivation for buying. Those that bought from you at a lower price point may not find the value with higher prices. Be prepared to loose a few because of it. But I belive most customers generally except that prices will increase over time.
  5. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Messages: 1,712

    The only ones that get notified are those maintenance jobs under contract for full service. They just get the new annual price.

    Anyone that buys services and materials on a pay as you go basis just get billed the new rate. I keep per cuts and apps the same for the season. Anything else I change when I feel like it.

    Don't worry about reaction unless you bang'em hard. It's like we're worried and almost none of them blink an eye. Prices change at the grocery store, gas station, car dealership, insurance, interest rates everyday. It's no big deal. Be like NIKE, just do it.

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