raising price with renewal

Discussion in 'Business Operations' started by CNYScapes, Jan 15, 2013.

  1. CNYScapes

    CNYScapes LawnSite Senior Member
    Messages: 916

    So I had my guys keep track of all the time they spent at every property this past summer. I am just getting done going over all the information and am realizing that some of my lawn pricing is right on target, some are high and some are underpriced, some by $5 per cut.

    I will be raising these low ones up when I send out renewal letters. Should I tell them I underpriced their lawn from the beginning? Or should I give another excuse?

    I know I may lose some lawns but I am willing to lose a few that are losers anyway if I can not get them to pay what the lawn is worth.

    What would you do?
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    Just send it out with the new price,no need to explain most people understand.
  3. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Messages: 3,336

    Yep I am going to do the same thing. The food store doesn't give you an explanation when all of their stuff doubles in price, I don't feel the need to explain myself over 5 to 10%.
  4. LandFakers

    LandFakers LawnSite Fanatic
    from CT
    Messages: 6,309

    I would just send it out like grand view said
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  5. CNYScapes

    CNYScapes LawnSite Senior Member
    Messages: 916

    Guess i just need to grow some balls and do it. I havent raised some of these in years and have been losing my azz. I should have done some time tracking way before now!!!!!:hammerhead:
  6. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Messages: 2,267

    I dont explain when I have a price increase, I just send out the new contract with a new price. I plan on raising atleast half my customers this year.
  7. johndeereguy

    johndeereguy LawnSite Member
    from Iowa
    Messages: 220

    Get exak time pocket clock. Instead of spending hours or days going over your employees time cards. Just look up the info on the data base, well worth the investment
  8. branchoutshrub

    branchoutshrub LawnSite Member
    Messages: 118

    Just send out the new pricing for 2013. I wouldn't explain. Most customers will understand that prices are up all over. Just going to the grocery store is 5% more every year.
  9. CLS_Birmingham

    CLS_Birmingham LawnSite Member
    Messages: 128

    Look just explain to them that thanks to Obama, beer prices have gone up and you need to compensate for that to sustain your current drinking habit.....

    haha j/k. Trust me, I'm in the same boat you are and I was worried about the same thing when I sent out my first renewal on the 2nd of this month. My clients price went up significantly. 2 weeks later, I had a signed contract for the new amount, no questions asked. In this economy, people understand.
    Last edited: Jan 17, 2013
  10. JLSLLC

    JLSLLC LawnSite Fanatic
    Messages: 7,971

    Very good thread for this time of the year- I need to do the same!

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