Raising Prices??????

Discussion in 'Business Operations' started by Landscaper4u, Mar 31, 2006.

  1. Landscaper4u

    Landscaper4u LawnSite Member
    from Indiana
    Messages: 51

    Hello, I have been landscaping now for 5 years, although I have just been lucky enough to work with 2 contractors, which gives me enough business installing lawns, landscaping, etc. Here is the issue though... I bought a smaller landscape company out, last year and agreed to take on the clients for the same price he did them for the year before. Well, now its time for a raise in price; I have read people's replys about letters, phone calls... but where I am from and how I feel I should go about this is a visit to the business. I know to make an appointment and all the proper things to do but here's the pickle. Heres what I need to tell some of my clients the yard we did last year for $30 needs to be $55-$60. The reason why is the person mowing them before didn't have anything else to do, didn't strive on quality... So my approach was goin to be. Mr. Green on the price increase the following reasons are, 1. The time that needs to be invested into your property that is going to give it that excellent look, I cannot do because if I take that long on this property I am loosing money (and that is the truth) I want to be able to give you the quality that my customers love and expect... but I cannot not work free, I would also garntee this price in our contract not to go up, for the next 3 years... No matter what fuel prices do... etc. I feel like with the price we are currently at is cheating us both because, I can't give you the quality you deserve and I am not for, and people who see my work know that I do excellent work.... seeing your property creates a question in the mind of what has happend to my services. PLEASE HELP... I would appreciate any help thanks guys...

    Let the grass grow... Landscaper4u
  2. DistLawns

    DistLawns LawnSite Member
    from Midwest
    Messages: 120

    Tough call, raising prices on customers you bought might not be easy, however if your not making money on jobs, you have no choice. I bought out a company 2 years ago and I keep their prices the same, and increase the price of new clients.
  3. Desertdweller

    Desertdweller LawnSite Member
    Messages: 159

    I've bought several companies over the years. Generally I wouldn't buy one if the price the former owner was charging was so low it would be tough to raise to a decent level. You can't work for free so maybe slowly raise your rates and get them where you want over a 2 or 3 year plan.

    Possibly add another service that doesn't cost you much but has value to the customer. Good Luck.
  4. Xterminator

    Xterminator LawnSite Senior Member
    Messages: 279

    and dont tell them you wont go up for Three Years no matter what gas prices do. You could get in trouble if it Sky Rockets

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