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Discussion in 'Pesticide & Herbicide Application' started by MIDWEST25, Oct 23, 2005.
who is raising there prices on customers this next year and how much (as a percent)
I am raising prices next season. I am going to wait until the end of January before I decide how much, because then I will have a clue about the price of my materials.
I know I will be raising prices at least 7% due to the price of fuel.
As Mr Barefoot said. Next year I will get my quotes from my supplier and then I will decide. Its based on more than just the price of a bag of fertilizer but that will significantly figure in to the total.
looking to buy spring products now to avoid increase. I have heard of increase from a few vendors coming next year.
Rising fertilizer costs will result in higher prices as well as gasoline. I will offer my existing clients a locked price now (before the increase) if they want to commit. Nobody can escape the raise due to fuel.
We did a 6% across the board increase on residential contracts, and a little higher for the commercial, and federal ones. We were hoping that some of the accounts would drop off freeing us up for some lucrative contracts with the local law enforcement agencies. The CHP contracts are coming up to bid and they usually run about $20k or more a year.
Fluctuation in the price of a barrel of oil really has me stumped when Guesstimating future materials costs. I watched oil go over $ 70 a barrel and paid $ 3.50 a gallon for Diesel. I seen oil go back down to $ 50 a barrel and paid $ 3.40 a gallon for Diesel. Production and delivery costs of Fertilizer and Pesticide are directly related to the price of oil.
Florida being the Bug Capital on American and my area having very sandy soil, translates into more product per thousand. A state wide big boy in my area as just raised there 20% according to a salesman working for them. I have not raised price in several years to my older customer(bad on Me) and I now doing so. These raises are in fact somewhere between 9 and 20 % depending on now old a customer is. I have not meant a lot of Resistance to the price increase from homeowners. I have also told them I could not guarantee this new price due to inflation.
My major concern is the Commercial properties where contracts and prices are written in stone. I am presently bidding on 16 acre of turf for a condo assoc. I have spend a great deal of time measuring and accessing this property. I have also written a management recommendation plan for this Condo since it is in bad shape from mismanagement. Many years ago I build a spread sheet in Excel to calculate cost per thousand from current chemical cost input. Therefore I know my CURRENT chemical cost and could give a very competitive bid from currents costs. However I fear the increasing costs in the years to come. Therefore I am just not sure how to write this proposal to account for future costs and still stay competitive.
What Ric Said..
I am going to raise mine accordingly as well. Some services like aeration will be significantly raised...