price increase

Discussion in 'Lawn Mowing' started by lawnguyz2k3, Sep 26, 2005.

  1. lawnguyz2k3

    lawnguyz2k3 LawnSite Member
    Messages: 25

    I had to raise my prices up at least 5.00 to come out ahead people are going nuts! It just about got to the point were i told them to find somebodyelse, :help: is anybody else having this problem?
  2. dcplace2004

    dcplace2004 LawnSite Senior Member
    Messages: 423

    All were pretty happy to help me out because I do outstanding work...I was very humble and did not send out a stupid impersonal letter stating "I regret to inform you but you rates are going up because of fuel prices, etc."...I instead called them on the phone or talked to them in person and broke down the expenses (briefly) so they had an ideas of where I was coming from...they were happy to allow the 5 dollar extra a cut...Just as everything in every store has gone up because of our current economy due to the many reasons, so should services...If any of my customers got irrate about the prices I would continue their lawn for the rest of the season and then drop them for next season and then explain why I did so......RAISE THEIR PRICES SO YOU CAN COMPETE! LET THE PITAS GO! People that bid way below you will eventually go out of business so I would not worry about that...I am learning, people, slowly but surely...peace...
  3. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Messages: 1,154

    Be happy that they complain and don't cancel. It's a bad situation when they don't give you any feedback and simply cancel service.
  4. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Messages: 1,154

    We've found that long letters full of excuses don't work either. Just a simple "Thank you for your patronage, your price for service beginnning on 1/1/06 will be $XX.XX"

    Everyone is well aware of increasing gas prices, they don't need to be reminded of it.

    In addition, a long letter keeps them thinking about longer. You don't want that. A fleeting one liner, they say "geez another price increase, better get supper on" and it's over. Some of the price increase letters I've read are almost a page long and it is enough to depress the heck out of anyone. You'd swear the sky is falling.
  5. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,574

    We held our prices for over 10 years and I can assure you we are making good money and we aren't going out of business. Guys with high profit margins are usually the first to raise prices and most often those customer come looking for lower prices
  6. KINGjosh

    KINGjosh LawnSite Senior Member
    Messages: 531

    I gave them till the 15th of Oct. till the price change will take effect.
    $5.00 more per cut. Havent had any cancels yet. I have talked to alot of local LCOs and they have told me the same, they are raising rates aswell. I finally had enough, a raise was well over due. Keep it real!
  7. Metro Lawn

    Metro Lawn LawnSite Silver Member
    Messages: 2,116

    I am finding that a $5 increase is out of line. We added a 10% fuel surcharge, and it more than covered the additional cost of fuel. Using you $5 a lawn system.. you have 50 lawns for example 50 x $5 is $250 additional a week.. we don't use that much fuel to cut double that, and this is on top of your existing fuel budget.. see why they are mad.. if you use a % increase you can say ( fuel is up 50% from last season, and I am only increasing the price by 10% ) it doesn't show the whole picture, but makes them feel they are getting a deal compared to the % of cost increase. I don't know if I am explaining this right, but we have not had any issues with it.

    These are our actual numbers from last year and this year.

    last year average fuel per week $400
    this year average fuel per week $580

    our fuel surcharge brings in an additional $400 to $600 a week with our actual fuel cost increase of only $180 a week

    TURFLORD LawnSite Senior Member
    Messages: 834

    I held back on a fuel surcharge. Hopefully my customers recognize and appreciate this. In my area we are also dealing with a drought on top of fuel prices. Customers are getting hit with fuel surcharges from all angles and are using the drought to stop service early to compensate. I feel that a surcharge will totally "dry up" what little work I have.

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