raising prices

Discussion in 'Lawn Mowing' started by TST1, Feb 1, 2001.

  1. TST1

    TST1 LawnSite Member
    Messages: 5

    I am planing on raising prices this season.Does anyone have a good form letter stating reasons on the increase?If so, can someone post it?
  2. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Messages: 1,415

    Well what are your reasons?
  3. Michael Fronczak

    Michael Fronczak LawnSite Member
    Messages: 230

    I have found customers don't usually ask us for reasons as long as increase is minimal,(less than 5%), which is our general price increase (3-5% annually).
  4. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    There are a couple really good ones on here somewhere in the archives but I could find the ones I was looking for. This is an excerpt from one of Fireball's posts last year, hope it gives you some ideas on what to include in your letter, and of course, always be polite.

    Dear Customer;

    The reason that I can't charge you what I charged you last year is
    1. The price of gas went up 33% over last year(notice your last fuel oil bill?)
    2. The price of labor is going up (President Clinton wants to raise the minuium wage)
    3. Insurance prices are going to raise 6% this year(quote your insurance co here)
    4. My banking costs are increasing(Alan Greenspan just raised the interest rate)
    5. Lesco my main supplier is raising prices 3%(see their annual report)
    6. Equipment costs are going up 5% (quote Scag here)Whoever thought a pickup truck would cost $30,000 today
    7.Global Warming could cause future droughts which result in loss of revenue to Larry's Landscaping rendering him unable to cover his overhead.
    8. Continue with more examples if you want to but always quote a verifible source for the increase.
    There is no way I can substain the past service levels that you received with the current pricing levels. I must request that all existing full service lawn maintenance customers pay for my services on a 8 month budget plan. Your price of _____per month will include 33 mowings, one spring cleanup, aeration, fertilizing, fall cleanup(you have to spell out what you are going to do for them for the eight months) if this is not acceptable per diem cuts are ____per cut and all other services are time and material basis. Hourly charge is 48.00 per labor hour

    What you are trying to do is the hardest thing in the green industry. Getting people to realize what they are paying to maintain their $100,000+ investment on a yearly basis instead of a per time basis. Once you do this, your life gets a lot easier.


    Hope this helped!


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