Sean Adams
LawnSite Gold Member
- Location
- Pennsylvania
Another year has passed...assuming you have sat down and looked over your numbers this past month as well as for the whole season, you should be able to tell whether or not a price increase is required. A new year often times means growth, more equipment, more travel time (gas), maybe more employees or giving employees raises, etc.... when your costs go up you should be able to justify to your clients the need for a price increase. Now how you go about doing that is the trick....simply invoicing them a new amount won't cut it, a voice mail isn't going to win you any fans.... a phone call speaking directly to them, or even better, a nice form letter, explaining the need for a price increase is the way to go. But realize that your price increase should not be too significant unless part of your objective is to weed out clients you do not want. If you made the mistake of mowing for Mr. Jones in 2005 for $25, don't think he will be thrilled if you send him a letter saying his price is going to change to $45 per mowing. A slight increase for all clients across the board (if there is room for it - handle each client individually) will probably give you the extra added and needed revenue heading into the new season.