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Price Increases on Customers

Discussion in 'Lawn Mowing' started by JohnyNCa, Jun 26, 2000.

  1. JohnyNCa

    JohnyNCa LawnSite Member
    Messages: 56

    I was wondering how do u approach your customer on increasing your rates? Do u talk to them in person, or send them a letter saying your gonna be increasing the rates? I was thinking about sending them a letter along with my invoice stating my price increase....was wondering how u guys go about doing that. Also does anyone have a example letter detailing their price increase? Thanks
     
  2. MOW ED

    MOW ED LawnSite Fanatic
    Messages: 5,028

    I usually send a letter in the spring before the season. The letter lays out a few reasons why I have to increase for this year. Taxes, maintenance, insurance ect. This year is a good one for increases because I used a local tax issue as well as the price of gasoline to increase rates. <p>If you have a good initial pricing procedure then its easier to increase a little at a time as needed. You have to cover expenses and also make a profit. Good Luck.
     
  3. GrassMaster

    GrassMaster Senior Member
    Messages: 447

    Hello Everybody:<p>WE usually would just add a nice letter to our monthly bill & gave them 30 days notice. <p>WE would ask if they have any question to please call us & if we did not hear from them, that it was understood that they would automatically receive price increase.<p>As long as not very drastic raise in services, we never had problem. <p>I don't think it would be very wise to do it in person. It would lay you open to, too many issues & all you have to do is answer one question wrong & you lost an account.<p>----------<br>GrassMaster - Home: www.lawnservicing.com<br>My Start Up Page www.lawnservicing.com/startup/
     
  4. TGCummings

    TGCummings LawnSite Senior Member
    Messages: 773

    We've always done it exactly the way Grass Master just said, for all the reasons he stated. A note added to the billing gets the word out to everyone a good 30 days ahead of time and still allows for them to call you if they have questions/comments. <p>-TGC
     
  5. Evan528

    Evan528 LawnSite Silver Member
    Messages: 2,143

    i also put out a letter early spring reminding my costomers of my complete list off services. On the bottom of the letter i put &quot; your 2000 price per mowing is $----&quot;. I dont think any of them ever even notice because ive never even gotten one comment about my price increase. i just dont raISE MY PRICES MORE THAN 2-3 BUCKS A YEAR!
     
  6. klc

    klc LawnSite Member
    from iowa
    Messages: 27

    depends on the relationship with the customer if good talk to them in person I'll bet they will be undderstanding and may stay with you longer and add a tempory gas increase of 3 to 5 % but let them know
     
  7. yardsmith

    yardsmith LawnSite Senior Member
    from Ohio
    Messages: 628

    I usually raise my prices every 2-3 yrs. with older accts. Hardly ever lost one that way, & if so, good riddance.<br>Easiest way for me now is all new customers I get are started at the higher price, so I don't have to raise them the very next year. Most people like to hear &quot;the price is the same as last yr.&quot; So I start all new folks out that way. Then if we have a crisis, like gas prices, it's more understandable.<br>If you are too low on some, you can offer other services at a markup to help offset losses.<p>----------<br>Smitty ô¿ô<br>
     
  8. Toroguy

    Toroguy LawnSite Bronze Member
    Messages: 1,075

    I try not to raise the price during the season. Unless the customer has different expectations than when the estimate was delivered.<p>Due to my crappy estimating techniques, I will be raising quite a few next season.<p>Smittys idea of off-setting the price with a higher price on additional services is a good one.<p>I would put your price increase in writing. With a &quot;please call with any questions&quot; notation.
     

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