Minimum yearly price increase?

Discussion in 'Business Operations' started by AB Lawn Care, Mar 12, 2001.

  1. AB Lawn Care

    AB Lawn Care LawnSite Senior Member
    from Ontario
    Messages: 585

    For the past few years we have been bringing up our prices by about 10% each year due to gas costs and other things like that.Does antone have a set or minimum yearly price increase for clients?

  2. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Messages: 1,276


    During the winter months I take a look at a good sampling of our projects and look to see where we did well and where we didn't. And I take a look at what the prices are going to be for us this year (including new costs for me, like medical coverage this year). Then I change the prices accordingly. Last year our prices went up 20-30%. This year 0-10%. One year we didn't change prices at all.
  3. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    i haven't raised my prices since i started 4 years ago. there way to many low ballers in my area, it seems like 3 new guys come everyday in the spring. i think its good that new guys are trying to start out but if they try to lowball 1 of my customers they become very sorry about it, after i take some of there lawns.
  4. Scraper

    Scraper LawnSite Bronze Member
    Messages: 1,656

    So Joshua...are you saying you then in turn low ball the competition's lawns to take them from them?
  5. AB Lawn Care

    AB Lawn Care LawnSite Senior Member
    from Ontario
    Messages: 585

    I use to do that too.Some other company would go after one of my jobs any I would start going after their jobs like crazy.I soon realized that I was only loosing money by doing that.So I started to market my work if I lost a few jobs.I noticed that I was picking up much better jobs and did not miss the days of lowballing the other companys in my area.

    I'm not saying you should do any diffrent joshua.I just personally find that letting the lowballers lowball all they want is often the best way to be rid of them.

    It's funny I was the little lowballer in my city 6 years ago,and now i'm in the top 5 of compays in size and in what we charge.
  6. cutntrim

    cutntrim LawnSite Senior Member
    Messages: 474

    Hey Adam,

    We don't have a set rate that we increase prices by. We do a budget for the season each winter and then adjust accordingly. We do, however, incrementally adjust our personal salaries/drawings upwards each year. Then to cover that added cost to the business, we look at our pricing, our efficiency, our equipment, our employees, and the profitability of each account to determine where changes need to be made.

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