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Raising Prices?????

Discussion in 'Lawn Mowing' started by His Scapes, Feb 20, 2008.

  1. His Scapes

    His Scapes LawnSite Member
    Messages: 35

    I was just wondering what you guys did about price increases on yearly maintenance customers.I filled up my diesel today at 3.59 a gallon and figured it my be time for an increase.I have only increased prices once and it was about 3 years ago.What would be an appropriate increase and what would you say in your increase letters.Any info would be helpfull.
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    Only you would know what a good increase is. I would say in the letter that the new price will be________. What did the guy at the gas station say?
  3. TPLawnPro

    TPLawnPro LawnSite Senior Member
    Messages: 424

    I hear that!!!

    Diesel at $3.45 / gallon, rising energy costs, and the cost of food on the table for my two growing boys has risen. Someone's going to have to cough up the cash - cuz I'm certainly not cutting back on my Direct TV subscription.

    Yes sir. I don't hesitate to adjust my rates accordingly. A $60 per week lawn account three years ago is now a $70 account per week.
  4. Looking Good Lawn Service

    Looking Good Lawn Service LawnSite Senior Member
    Messages: 272

    I was having the same thought myself. I have been told just to raise, dont mention it(like at the grocery store), send a letter stating an increase, implement a fuel surcharge, ect. But after some talking it over, I think I will call or visit my customers and talk to them and feel them out, basically let them know that I will be augmenting the prices to cover the extra cost of doing business, if you can interact with your customer in person it helps, for ex, when you ask someone to marry you, you dont do it in a letter or over the phone, so I think it would make a better impression in person. my 2 cents BTW, Im thinking raising each cut 5-10 dollars on average, if you really think about, you are just adjusting for a 3.50 a gallon fuel plus oil mix, so really they are just paying for what you use in their yard.
  5. mowman84

    mowman84 LawnSite Member
    Messages: 91

    Im raising some $2.50 and others $5.00.
  6. Trader Rick

    Trader Rick LawnSite Member
    Messages: 50

    Fuel, blades, filters you name it, its all gone up. I just bought 2 new Walkers, the price has gone up $800 since last spring for the same mower. I had a Bank President call me yesterday complaining that my charges for snow removal were higher than he was having to pay for a branch in a town 45 miles away. I checked the prices and I have only raised them by $10 over the last 4 years. Up at odark thirty to have his lots and walks safe befor the employees show up, all on auto pilot. Pour me another cup of coffee please.....:hammerhead::hammerhead::hammerhead:

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    And what will you do if someone says NO to your increase???

    I understand your point, but really, price increases are expected and inevitable. If I were a customer, I'd be a bit surprised for my lawn guy to show up and ask permission to raise my rate.
  8. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Messages: 1,512

    Prices of almost everything is raising, gas,food,electric,etc but the one thing that hasn't raised is peoples salaries. I've talked to a few people who said they were going to have to start cutting back on certain things just to make ends meet because they didn't make enough money to pay for everything. One woman said she was cutting out lawn services,cable,eating out and a few other things just to pay her bills and save money to put her kids in college. I'm kinda glad I got out of the business when I did because the economy is screwed and to many people don't have the money and a lot of its due to the sub-prime mortgages. So many people got into this big huge ass houses on a teaser home loan rates and now that there loan went up there close to foreclosure. A few of my old customers fell into this trap and now are on the verge of losing there house and don't give a crap about having there lawn done. I think a lot of people are going to be cutting back on having lawn services done this year only because they can't afford it due to high rising costs of basic living expenses.
  9. His Scapes

    His Scapes LawnSite Member
    Messages: 35

    Bump Bump Bump
  10. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    I've raised prices between 6 and 15% this year.

    At the end of last year I told all of my clients to be expecting rate increases this spring.

    I must not have raised them enough, because I hear "oh, only that much?? absolutely go ahead" many many more times than I hear "well, we'll accept your bid and we'll get back to you".

    I would say it's 7 to 1 ratio right now.

    Raise those prices.

    FWIW, I do all of my bids in person. ALWAYS. If there's ever a problem, I don't want someone reading a proposal, think they're getting ripped off, not having the time to call me on something, and then calling someone else.

    If I'm there in person handing out a new bid, even on a property I've been doing for 15 years, right then and there, I can explain to them that all I've basically done was taken last years' proposal that was saved on the computer, changed the dates and entered the new bid.

    Then they pretty much say "okay, go ahead".

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