Fair pricing

[tiedeman]

Do you believe that it is fair if you do not raise prices for current customers that renew every year, yet raise prices for new customers.

Example:
Your regular lawn maintenance customer asks for a tree to be installed on their property. Since they are a current lawn maintenance customer you only charge them $52 per hour for labor.

But now lets say that a new customer, not a lawn maintenance calls up, and asks for a tree to be installed on their property, but since they are not a current customer you charge $70 per hour for labor.

Is this fair?

[Steve]

I think it is fair to charge what ever the market will bare. If the customer is willing to pay it, why not charge them the highest amount you can get?

[tiedeman]

Even if they are neighbors?

[Steve]

Well, it is ultimately up to you how you charge. You can give price breaks to whomever you want but I think when you feel comfortable with it, you should go for the highest price you can get.