PDA

View Full Version : Raising Prices


adamsmowing88
02-20-2010, 09:29 AM
How does your customers react when you raise your prices the next season just a hair because you've invested in either more equipment or a newer truck with bigger payments?

lawn mowering
02-20-2010, 09:43 AM
My NEWer customers would say no thank you and find someone else someone I have had for a while maybe more willing to pay $5 more, However I would not tell them that they are paying more for your stuff, if gas has went up in price in your area that is the best way to raise the price(during the year), but when/if the price goes back down at all the customer would expect your price to go down the best time to raise prices is before spring starts it's easiest to tell them a higher price. for example if there is only 1-2 months left in the season and you want to raise the price to buy new stuff, wait untill 3/??/xx then buy everything and then raise the price $5 or even $10 depending on how loyal you beleive he/she is to your services.

JP Landscaping
02-20-2010, 10:50 AM
just be carefull in raising prices while the economy is in this situation.. With all the new competition, you may lose more customers than expected.

Check your calculations carefully and make out scenerios. For example one could be if I raise my price on average $10 and hour, how many customers am I expected to lose. and how much extra money will i be pulling in with the ones that are left at this new price? Will that cover my new expenses?

in the end you want to figure out if your net profit will increase, decrease, or stay the same with the new changes. If you see your net profit decrease because of this, then it may not be a good time. Maybe staying as-is is best. On the other hand if your equipment is shot and you NEED to buy new then there is no other choice.

ProCut TM
02-20-2010, 03:50 PM
use you judgement if you have a lawn that is under priced raise it, but if it pays good I would leave well enough alone in this economy. If you lose the cheap lawn because of the increase who cares. If it was under priced anyway, let someone else work too cheap.

I never go up more than $5 a year on my monthly rate. And I never raise prices in the slow part of the season (we are yearly here in FL).

I have a few accounts that are border line and should be raised, but I am holding off again this season.

Yard Elements
02-20-2010, 09:19 PM
In reality you should be able to do a job cheaper with better equipment. Why get a truck with bigger payments. Pay that sucker off asap. Get some good equipment and keep your prices competitive.

Most equipment will last a long time if you keep up on the maintain. And when you upgrade the job will go faster so you will be able to service more properties and make more money.

Sometimes your rates should go up but I personally don't feel that is the right reason to raise your rates.


Debt free is the way to be LOL Just my .02 cents I hope it works out though!!! This biz is competitive! Good luck!
:D

ProCut TM
02-20-2010, 09:49 PM
Debt free is the way to be
Brilliant advice my friend, I am working toward getting there.

picframer
02-21-2010, 07:39 AM
In reality you should be able to do a job cheaper with better equipment. Why get a truck with bigger payments. Pay that sucker off asap. Get some good equipment and keep your prices competitive.

:D

I too would be desperate careful simply based on the economy, what we do is seek out other things we can do on the property to increase the bottom line or simply ask for referrals.

On the excavation, landscaping, pressure washing, tree chitting, chipping services we offer, we can adjust the prices based on what the competition is doing as the clients are generally not a repeat client so they would not know the difference. For example I have to increase our wood chipping simply because the chipper is so fast, excavation has to increase due to transportation costs but these are by the hour job.

Steve
02-21-2010, 10:13 AM
Is there an ideal time during the year to raise prices for lawn care?

ProCut TM
02-21-2010, 02:52 PM
Is there an ideal time during the year to raise prices for lawn care?

for me it is right at the beginning of the high season March or April

Steve
02-22-2010, 07:28 AM
Do you try to raise your prices each year by a certain %?

ProCut TM
02-22-2010, 07:45 AM
I just go up by $5 if necessary, I will only be raising 3 clients this year.

CHEESE2009
02-22-2010, 08:20 AM
I give a customer a big discount every month because I knew I'd enjoy having her as a customer, I'm lucky because my price was originally very high & it didn't hurt to lower it for her.

So by doing this, she hired me & found me 3 other customers on her street.

So now to get back on topic.

Raising your price depends on what it's set at currently. If the lawns aren't bringing in any good money, raise the price, if you lose the customer it's not a major loss. Though if the lawn was already priced low by your own doing, your customer probably wont care. If the customer you have is obviously cheap, you'll lose him/her even by charging a dime extra at any time.

Another word of advice, try the 99 cent tactic.

Instead of $100.00/month try $99.99/month

If you can't change the price enough to make a profit, change the way it looks by a few cents.

lawn mowering
02-22-2010, 10:14 AM
I found that the most I can raise my price is $5 regardless of the old price rather it was $20 or $80 if I raise ther price $7 they will say no thank you but if it is $5 even if someone else is cheaper they will want you to continue because they know you do a good job and wont want to try to find someone else, but they will I also found that if I try to raise the price higher tan they are willing to pay and they say no I ask what would be a fair price or make a better offer, however they say they think they are being ripped off even if you try to agree on the old price.

lawn mowering
02-22-2010, 10:15 AM
to steve Q. about %

mortonslawn
02-22-2010, 06:06 PM
Good advice on raising prices.

Maybe instead of raising prices, you should add and offer more services and charge for them. Look around their yards and see what can be done. Do they need fertilizing? Do they need their house pressure washed? Do they need bushes trimmed, a dead tree, etc.