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raising prices

Discussion in 'Business Operations' started by charlies, Apr 25, 2004.

  1. charlies

    charlies LawnSite Senior Member
    from earth
    Messages: 587


    we haven't raised prices across the board ever, we have had a more bandaid type approach to it. raise a handful each year. i am embarrased to admit that. don't be too hard on me! frankly, we were always a little scared as we have always been very concerned about bulk growth in client base. now our crews are slightly overscheduled, so it wouldn't hurt us to lose a few. so here are my questions:

    is 5 buckeroneez too much?
    should it not be 5 across the board, but based on a sliding scale instead?
    if a sliding scale, based on price, or on location?
    what about customers we just picked up in the last 12 months?
    what about ones we have raised in the last year?
    what about ones we have had a rocky road with recently?

    tia, les
  2. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    im assuming you have your crews track their times. if this is the case, then why dont you just up your hourly rate by x amount of money, and then increase each account by whatever it takes to get them to your new hourly rate. I did this going into this spring and its worked very well.
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

  4. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Messages: 932

    I am fairly new to the business, as this is only my second year, but what I have found helpful is tracking how much each lawn takes me. This way, I'll know which ones I will need to raise, if any next year, or if I should just up all of them $1 or $2. I think $5 at a time may be too much for some to accept, if they are only basing their service on price, but those I don't mind losing too much.
    I'd say there's nothing wrong with upping prices, as long as you can justify it to the customer, and you are providing quality service. You will find out who appreciates your service fairly quick.
    Hope it works out for you!
  5. cklands

    cklands LawnSite Senior Member
    from MA
    Messages: 360

    I raise prices across the board every year. Usually by 5%. Althought there are always a few that I don't change like customers that are at say $49 and I don't want to go over that $50 and freak the customer out. If I haven't had the the customer for more than a season I won't raise their price.
  6. T.E.

    T.E. LawnSite Senior Member
    Messages: 799

    I had never raised prices either until this year. I raised most all of them $5.00 bucks a yard. I simply told the people the cost of doing biz. had went up, and that I would,not raise them every year. They all said OK. Tony

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