Raised prices

Turfdude

LawnSite Bronze Member
Location
South Jersey
Over the past few years, we've been raising our minimum service fee for mowing. I still have many accounts from 10+ years ago, and have not been increasing their rates to my newer price structure as many are elderly and really helped me get my start. However, this year with the new shop and ever increasing exenses, I finally priced them at "market value". Anyhow, I mailed out approximately 190 contracts last week and have already received 40+ back. Not too shabby since we've basically been snowcovered the entire time. Also, a lot of the long term clients have renewed. I guess quality service goes a long way.

Anyway, I know there are always a lot of others hesitant to raise rates too. I just wanted to let you know that if you provide quality service and are honest with your clients that you will earn their loyalty and they will stay with you!!
 

bobbygedd

LawnSite Fanatic
Location
NJ
i am glad to hear things are going well with you bob. i'll be mailing out contracts monday morning, placing my first newspaper adds in about a week, and starting door hangers as soon as the weather is tolerable. i have also increased prices on mowing. a measley $2 bucks a lawn, but if all of my 30 + lawns renew, that's a $240 a month raise right off the bat. keep up the good work my friend
 

rodfather

LawnSite Fanatic
Location
Clinton, NJ
Originally posted by Turfdude
However, this year with the new shop and ever increasing exenses, I finally priced them at "market value".

What's "market value" Bob? Like, what the market can bear I'm guessing?
 

workaholic

LawnSite Senior Member
Location
Charleroi P.a
Seems like every thing has gone up in the last few months, My prices will increase also any where from 2 to 5 bucks. have not lost any customers by price increase in 10 or more years so i would have to think were doing something right....
 
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Turfdude

Turfdude

LawnSite Bronze Member
Location
South Jersey
Actually Rod, I guess I shouldn't complauin. My average small lots are 3500 sqft+-, I have probably 100 of them at 700sq ft & under. My minimum per cut price is now $30.00. As Bobbygedd said last yr "$25 me to death in NJ" There are still a lot of companies mowing at this rate, and even a few below. A lot of my "equal" competitors are also adopting to the $30.00 minimum. There are a few w/ a $35 minimum, but most of them have lawns of 10,000 sqft & up.

With all of the rising costs of fuel, insurance,labor, phone, nextel, repairs, utilities, office supplies, etc... ad infinitum, it just doesn't make sense to me to mow for less.
 
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