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raising price with renewal

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

  1. Darryl G

    Darryl G LawnSite Fanatic
    Messages: 8,576

    Yup, just sent it out. I include a letter with mine that states that some of you will see a price increase and some mumbo jumbo that we try to keep any such increase to a minimum but that it's necessary in order to continue to provide the same high level of service they are accustomed to. But I don't go into any detail on why the price is going up or apologize. I have always tracked my times down to the minute on every lawn, but I don't always analyze the data.
     
  2. Nj shade

    Nj shade LawnSite Senior Member
    from Nj
    Messages: 270

    I always explain increases, fuel keeps going up, insurance costs, etc. try to stay away from 5% increase, we always use an odd number increase, 5.25%, 4.75% or whatever it is. Makes the customer feel better seeing its not a round number.
     
  3. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Messages: 774

    I raise prices 2-8 % every year to keep up with inflation and costs. One accounts that I have over priced I will still raise even if its only a quarter! Ones I have under priced, I'll raise as much as possible, but sometimes you can't fix it in one year.
     
  4. Darryl G

    Darryl G LawnSite Fanatic
    Messages: 8,576

    I've gone up as much as 30% in a year if I find that a new account was priced too low (i.e. $50 to $65). I'll hold the price for the season but after that it needs to come up. If they drop me over it so be it.
     
  5. grandview (2006)

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

    I have somewhat of a tier system, Some of my oldest customers (not age) are a little lower then my new ones ,but I still raise the price on them every year.New customers pay the going rate of the current season.
     

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