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Price Increases

lawnranger44

LawnSite Senior Member
Location
Hershey, Pa
How many of you guys raised prices already? We raised the average lawn 2-3 bucks, mostly because of gas prices and since they are expected to go up even more. Anybody ever lost a customer due to a small increase like this?
 

C4chris70

LawnSite Senior Member
I am raising prices an average of $5 per month as of April 1. I have only lost 2 customers in the past due to price increases. With the price of fuel still going up as well as high insurance costs, the increase is necessary.
 

CharlieBingo

LawnSite Senior Member
Never be afraid to raise prices. Those that drop a good service over a couple of dollars are bottom feeders. Do less work for more money. Takes most of us years to learn this.
 

bobbygedd

LawnSite Fanatic
Location
NJ
i raised them $2-$3 bucks each. havn't told em yet, won't tell em till i'm done cutting
 

dfor

LawnSite Senior Member
Location
So. New England
Definitely raising prices again this year. Haven't decided how much yet. Prices need to be raised every year. Everything else goes up, so should we.
 

justmjc

LawnSite Senior Member
Location
michigan
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?
 

lawnman_scott

LawnSite Fanatic
Location
st pete, FL
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?
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.
 


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