Couldnt you just expand with $27 to $32 accounts about as good as with $25-$30 accounts? They are the same lawns. No one mentioned outragous price increaces. Prices going up are just a fact of life, and people have to understand and deal with it. Sure some wont, but most will.Originally posted by justmjc
Hey, I have a question about raising the prices. In your opinion, wouldn't it make sense not raise prices and almost guarantee a renewal next year vs raising prices and losing a few accounts? I see the price increase makes up for it, but look at it from this point of view.
Do you want to continually expand keeping $25, $30, etc accounts and to keep adding each year?
Or, do you want to only maintain top doller accounts? I think prices can only go so high, before your eventually undercut by someone. Loyalty is only to an extent.
So, if you keep your prices at market rate or slightly above, you consistently expand without really losing anyone. I suppose it's a matter of if you want accounts that are premiumly priced vs. potentially more volume in each year. If you lose 5 accounts a year, that's 25 in five years, and it all adds up. I'm not saying don't raise prices, just not as high or as often. Does any of my concept make sense?
Any ideas or comments?