Price Increase

Discussion in 'Lawn Mowing' started by kory landscaping, Nov 28, 2003.

  1. kory landscaping

    kory landscaping LawnSite Member
    Messages: 90

    I have been lawn cutting for 10 years part time 10 customers, 2 years ago i lost my job and decided my it a full time job 66 customers. It's been really an enjoyable experience. I haven't raised prices in more then 5 years. Does anyone have any ideas or professional letters they have that can help me work it the right way. I'm working on a couple of ideas, but they just don't seem right. thanks for all your help.

    kory landscaping
    walker 42" mower
    encore 32" walk behind
  2. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    Your right you need to raise your prices. Letter's followed up by phone calls. Explain why you are increasing your rates. Only you know why the increase is important. Don't be to detailed with the letters. whatch the increase also. if your looking to go more than 10% You may lose some. But 5% on top of your sales last year should make a nice difference.

    Here's a breif sample

    Mr. Jones,
    Thank your for patronage. We enjoy having you as our Customer. This letter is to inform you of a rate increase to be effective Jan. 1 2004. The increase will be additional 2.5% on your monthly bill. If you have any questions or concerns about this matter please contact me at 555-5555. We look forward to servicing all your lawn care needs in 2004.

    Thanks, Big Jon
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I usually just tell them that due to insurance and fuel costs that rates have to increase. Then I follow up as well with a phone call and explain everything to them or sometimes even stop by their place to talk about it
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    don't say anything. if u have contracts, just up the fee by what u want, put it on the contract, and send it in. i usually raise the cut by $2. and the cleanups by $10-$15 for spring, and $20 for fall.
  5. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Agreed. Utility companies, oil companies, restaurants, vehicle manufacturers, etc., don't send out letters or take out advertisements to tell us about price increases...they just do it. So should we.
  6. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    Bobby and Roddy...I have to admit you 2 Joysee boys make sense on this're right....nobody kisses my butt when they stick it to me on a monthly bill for service. I'm going to take the Joysee approach this year.
  7. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    Here's the letter you're looking for (below). Feel free to use it or alter it.

    Attached Files:

  8. cklands

    cklands LawnSite Senior Member
    from MA
    Messages: 360

    I don't sat anything either. My clean ups are all done by the hour so that doesn't matter. I usually go up 5% a year on most accounts. The mulch jobs go 5% plus whatever my mulch supplier goes up. Out of about 150 weekly accounts I only get 1 or 2 a year that call and ask why the increase. Those 1 or 2 are always second season accounts.
  9. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

  10. kory landscaping

    kory landscaping LawnSite Member
    Messages: 90

    thank you j hisch, tiedeman, bobbygedd,rodfather,jimlewis, cklands and gopherteam you have been a life saver. i think having a forum like this really helps keep us in this kind of business. always read everybodies questions and answer.
    great job everyone. Happy Hoildays

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