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Price Increases on Customers

JohnyNCa

LawnSite Member
Location
California
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
 

MOW ED

LawnSite Fanatic
Location
N.E. Wisconsin
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.
 
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/
 

TGCummings

LawnSite Senior Member
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
 

Evan528

LawnSite Silver Member
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!
 

klc

LawnSite Member
Location
iowa
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
 

yardsmith

LawnSite Senior Member
Location
Ohio
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>
 

Toroguy

LawnSite Bronze Member
Location
Sacramento CA
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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