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To Raise Price or Not to Raise

Discussion in 'Business Operations' started by dmk395, Feb 19, 2006.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Messages: 1,006

    I have quite a few lawn mowing accounts that I have not had price raises on in 3-5 yrs. While I still make money on these, I often time am doing work, and feeling that they are low priced. Often times though the people are very good about paying, and give me little trouble, so for that I feel its worth it....nonetheless, am I making the right decision? I can send 2 guys out mowing with my 52" Standers and usually clear 800 in an 8 hour day....which seems good. How would you handle this situation? Looking for other educated opinions....

    TURF DOCTOR LawnSite Silver Member
    Messages: 2,138

    Hard to say sometimes you are top out on your price we have a lot of mow joes, i would hate to see you lose good accounts, i went up on 1 account 2 bucks and lost it hindsight i would like to have it back.
  3. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    If its been 3-5 years since you have raised the prices...they are probably expecting a price increase. Has your cost of living went up...how bout your gas prices? I would say you could increase it a little with very little chance of cancellation.
  4. Lux Lawn

    Lux Lawn LawnSite Silver Member
    Messages: 2,267

    I agree that some accounts seem like they can be maxed out on what you can raise them to.I try to raise my smaller accounts every 2 years.
  5. zturncutter

    zturncutter LawnSite Bronze Member
    Messages: 1,308

    Sometimes you can tweek the profitability on an account by reducing the service ever so slighty. One less service per year and you can make more profit than raising the price or perhaps edging every two weeks instead of every week on the edge of the season. Many times the customer does not appreciate just how good the service is anyway and would not know the difference. Of course this all depends on just how specific:usflag: your contracts read.

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