Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Rate Increase for a Customer


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 09-29-2010, 01:14 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
MountainViewGreenskeeper is on a distinguished road
Default Rate Increase for a Customer

As many of you know or may have guessed. I've been doing this full time for the last 7 months or so. When I first started I was optimistic about getting all my grass clients on weekly service. We some you just cant convince other wise and I charged more than the normal rate but not enough.

Now please understand I dont have to many clients in this situation and I still make money on some of them. But this one Im telling you about I probably break even on.

Her agreement is to have us out every 2 weeks and take care of the grass and weeds. She asked us 2 months ago to trim a bush for her and we obligied but took the opportunity to discuss a rate increase for the month of October. The rate would go from 32.50 to 40 a visit. Witch is our minimum for bi-weekly clients now. To get her better value for her money we were going to add the bushes to the agreement. Was more than fair I thought. Shes not going for it and looking for another landscaper. Witch is fine Ive been prepared to lose her for a while with the rate hike looming for the last 2 months anyways.

My question to you guys is how successful are you guys at retaining a client after a rate hike?
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 09-29-2010, 05:14 PM
StartALawnCareBusiness's Avatar
StartALawnCareBusiness StartALawnCareBusiness is offline
Keith
 
Join Date: May 2007
Posts: 731
Rep Power: 0
StartALawnCareBusiness is on a distinguished road
Lightbulb

Lawn care business tipsLawn Care Business Book
Generally, customers are okay with rate increases as long as the service still represents a good value to them. I have always had good luck giving rate increased at the beginning of the year. That way, customers don't feel they are being confronted with a rate increase in the middle of the season.

If a customer balks, you can always offer to give them an add-on for free. Something small like the bush trimming or blowing out a bed that gathers lots of leaves and debris during the mowing season. An extra small job here and there will help them accept the increase.

Keith
__________________
Start a profitable lawn care business.
Reply With Quote
  #3  
Old 09-29-2010, 11:02 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
MountainViewGreenskeeper is on a distinguished road
Default

Ouch almost a full day and no one but keith has experience in this or at least one to share. That cant be right....

Has anyone else had success in retaining clients after a rate increase?
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote
  #4  
Old 09-30-2010, 03:01 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

I think this is simply part of the growth process in your business.

When you initially get started, you are not going to have a good grasp on your expenses and what you should charge. The consequence of that is, properties will be underbid.

Now when properties are underbid, customers get used to those prices. They aren't going to want to pay more just because you need more for your business to survive. Even if you add on something extra, there will be plenty of customers that look at the bottom line, which is how much I am paying per month.

When you land underbid jobs, there is also a good chance you are picking up customers that are going to place a premium on cost. This means, their ultimate deciding factor is based on the price.

Furthermore, when you are servicing bi-weekly customers, you can pretty much assume they don't give a hoot about quality. They want price, price, price.

With all that being said, as you gain more experience and find the price you need to charge in order to cover your expenses and make a profit, you will need to correct the prices you charge customers who are underbid. There is a good chance these customers are not going to agree with a price hike and ultimately will need to be replaced with customers willing to pay a higher price and those wanting better quality.

No one likes losing customers, but if you can get rid of an underpaying customer and replace them with one who will pay you what you need, you are growing and should feel good that you are.

You can't make everyone happy and you can't work for free. So continue forwards and keep moving up the customer ladder. Forever looking for better customers who want the skill and quality you can perform at the price you need to survive.

Does this help?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 09-30-2010, 10:09 AM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
MountainViewGreenskeeper is on a distinguished road
Default

Ya it does I has hoping more or less that people on here had some experience to share on the matter.
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote
  #6  
Old 09-30-2010, 10:01 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

As Keith said, I think timing can be a big issue as well. You will probably find more success if you increase your prices at the beginning of the new season versus at some point during the season.

I have a couple of articles on the topic of raising prices, in my blog. They should help you further.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #7  
Old 10-01-2010, 06:50 PM
FloridaBoy's Avatar
FloridaBoy FloridaBoy is offline
FloridaBoy
 
Join Date: Jun 2009
Age: 39
Posts: 154
Rep Power: 5
FloridaBoy is on a distinguished road
Default

I know it may be hard if you dont have a really good client base, but in my personal opinion quality customers, is way better than a quantity of customers. Then the best is a quantity of quality customers, that comes with time and hard work.

in other words, just like Steve mentioned, you cant make everybody happy, if the customer cant except a small increase, they may not be that quality customer your striving for.

Every time i have raised prices, one or two will move on to another company. Thats business, and thats it.

Good luck and dont stress it to much.
__________________
Welcome Advise, Incourage comments, and never stop Cutting. Geoff<img src="http://www.gopherforum.com/attachment.php?attachmentid=1595&d=1253928284">
Reply With Quote
  #8  
Old 10-01-2010, 09:42 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 35,771
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Every time i have raised prices, one or two will move on to another company. Thats business, and thats it.
Do you find that they open a spot in your route that allows you to fill it with customers who are willing to pay a higher price? Ultimately in the end, do you find it worth it?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #9  
Old 10-01-2010, 10:00 PM
MountainViewGreenskeeper's Avatar
MountainViewGreenskeeper MountainViewGreenskeeper is offline
Senior Member
 
Join Date: Jan 2010
Location: Mesa, AZ
Posts: 473
Rep Power: 5
MountainViewGreenskeeper is on a distinguished road
Default

Quote:
Originally Posted by FloridaBoy View Post
in other words, just like Steve mentioned, you cant make everybody happy, if the customer cant except a small increase, they may not be that quality customer your striving for.
Ya that kinda my problem. Im a people pleaser. Im not stressed I just hate losing customers. I stive to be the guy customers use for years and years on end. I just hate seeing them go but like you said its business and life goes on. I just wonder what the success rate was out there.
__________________
Colton
Mountain View Greenskeeper proudly offering yard care in the East Valley of Arizona.
Reply With Quote
  #10  
Old 10-01-2010, 10:56 PM
jklawncare's Avatar
jklawncare jklawncare is offline
Senior Member
 
Join Date: Feb 2010
Location: Indiana
Posts: 577
Rep Power: 5
jklawncare is on a distinguished road
Default

well ill give my insight on this as only kieth and steve has

i had rates increase for 3 of my customers
2 of them were completely fine with it as they loved my service provided they also added when they agreed that if anyone ever needed a customer reccomendation or a job asked for refferances to put there number down.

however the third was not pleased. he even threatened to leave as a customer. He was a grouchy old picky man from the start. the kind that sits on his porch with his dog and drinks 36 cans of beer per day so he has nothing to do but nit pick


Although i was only raising it 10 dollars he was upset and until i explained that..all the other local companies would give you a bid on it for 5-10 more than that he was outraged.

He did get estimates from other companies though.. a couple buddies of mine who work in the area told me that they got estimates from him and we confirmed it was the same guy haha

but..theres always going to be different people.

if you do a good job and you know there happy..its almost guaranteed they wont have an issue as long as its not a ridiculous increase
__________________
Just Kut Lawn and Landscape
"Where Service is Always in Season"
Reach for the stars so if you fall you land on a cloud.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
telling customer your hourly rate sasquatchmonk General Business Discussions 20 08-19-2011 05:19 PM
Increase in irrigation business? Steve Tree Care, Irrigation, Landscaping, Hardscapes 1 06-05-2007 08:11 PM
Increase in sales online? Steve General Talk 3 03-16-2007 05:23 PM
Price increase Gopher Software Support Archived Question & Answers - Read Only 1 01-21-2005 07:35 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Mangwi Landscaping
bondservojc13
Yesterday 09:56 PM
Today 05:41 AM
by Sprinkler Buddy
1 32
Pushy customers
christopherhicks82
04-22-2014 08:22 PM
Today 04:56 AM
by Dan Tanner
6 145
In a bit situation need...
googus
04-22-2014 08:01 AM
Yesterday 10:03 PM
by googus
9 170
Acerage Rake
acrajchel
Yesterday 07:23 PM
Yesterday 07:23 PM
by acrajchel
0 32
2.5 acre mowing
xandrew245x
04-18-2014 06:55 AM
Yesterday 07:11 PM
by acrajchel
15 341
New Trailer
bobwill2009
Yesterday 12:46 PM
Yesterday 06:46 PM
by BelleCityLawn1
2 71
Advertising On...
JacobsLawnMowing
03-17-2014 03:21 PM
Yesterday 06:02 PM
by bobwill2009
13 867
Any greenhouse operators...
GoGreenerKS
04-15-2014 11:21 AM
Yesterday 12:37 PM
by Steve
7 221
Pond...
xandrew245x
04-22-2014 03:29 PM
Yesterday 12:30 PM
by Steve
3 87
Truck, Trailer,...
hawthornelawncare
12-23-2011 12:01 AM
Yesterday 12:17 PM
by bobwill2009
79 25,326
The $20 Mow Job
Dan Tanner
04-21-2014 07:24 PM
Yesterday 12:06 PM
by Steve
5 196
quickbooks users
CDLAWNCARE
04-20-2014 09:03 AM
Yesterday 06:48 AM
by CDLAWNCARE
4 177
Looking for advice on a...
Tekeda1
04-13-2014 09:53 AM
04-22-2014 07:55 PM
by Just for Cuts
23 584
About D@## Time!
TamMik
04-02-2014 08:10 AM
04-22-2014 05:14 PM
by BelleCityLawn1
19 870
Back for this year
xandrew245x
02-21-2014 04:30 PM
04-22-2014 03:36 PM
by xandrew245x
19 1,010
What Was Your Setup When...
superrman77
02-11-2014 10:53 AM
04-22-2014 12:29 AM
by Tony317
22 1,717
Sulky and Turf Tracer
acrajchel
04-07-2014 01:44 PM
04-22-2014 12:07 AM
by Tony317
9 448
danny 2
danny2
04-19-2014 10:19 PM
04-21-2014 12:25 PM
by Steve
3 138
this mower is driving me...
boog
04-17-2014 12:07 PM
04-21-2014 12:10 PM
by kslawn
13 359
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
04-21-2014 12:02 PM
by kslawn
20 607
I Got Taken...,
Dan Tanner
04-19-2014 06:26 AM
04-21-2014 11:49 AM
by Steve
4 233
new to this forum!
mower13126
04-18-2014 07:37 PM
04-21-2014 11:39 AM
by Steve
4 150
REO calling
Dan Tanner
04-16-2014 05:03 PM
04-21-2014 11:33 AM
by Steve
12 349
employee pay
4 seasons maintenance
04-10-2011 09:34 PM
04-20-2014 04:40 PM
by Dan Tanner
20 6,886
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
04-20-2014 11:13 AM
by ExtremeLawncareServices
32 1,216
Lawn Renovation
stevef1201
04-11-2014 12:00 PM
04-20-2014 11:11 AM
by kslawn
10 368
Customers droping like...
goodtimez
04-18-2014 09:53 AM
04-19-2014 08:09 AM
by CDLAWNCARE
7 231
Best Bulk Mulch delivery...
Steven Virgadamo
04-18-2014 09:52 AM
04-18-2014 05:34 PM
by Steve
2 105
Steve Virgadamo,...
Steven Virgadamo
04-18-2014 09:49 AM
04-18-2014 05:08 PM
by Steve
2 88
Instagram
Gerardo_Landscape
04-16-2014 11:28 AM
04-18-2014 04:51 PM
by Steve
3 184
Help with weed liability!
Prolawnofchatt
04-15-2014 09:10 AM
04-18-2014 04:47 PM
by Steve
5 248
Nationwide lawn care...
Billy Goat
04-15-2014 05:21 PM
04-18-2014 04:39 PM
by Steve
9 266
Truck Signage
Dan Tanner
04-16-2014 11:00 PM
04-18-2014 04:04 PM
by stevef1201
10 286
leaf removal
tlf59263
04-15-2014 10:00 PM
04-18-2014 03:59 PM
by stevef1201
6 239
Pay per click advertising
roostertail
02-12-2014 07:26 PM
04-17-2014 07:11 PM
by yardrate
10 640
Accepting credit cards,...
Darksteel
03-17-2014 08:01 PM
04-16-2014 01:02 PM
by jymie
15 806
Trimec
acrajchel
04-15-2014 08:24 PM
04-16-2014 11:10 AM
by Steve
3 151
Gopher Forum Discount!
BlackRain75
04-12-2014 10:44 PM
04-16-2014 10:50 AM
by Steve
9 349
hello
NFrailey
04-15-2014 01:39 PM
04-16-2014 10:48 AM
by Steve
1 132
Pricing a Mulch Job
dmcalpi
04-07-2014 02:16 PM
04-16-2014 09:40 AM
by jymie
21 789
google earth
CDLAWNCARE
04-12-2014 03:24 PM
04-16-2014 09:36 AM
by jymie
8 294
There has to be an...
CDLAWNCARE
04-14-2014 12:59 PM
04-15-2014 04:06 PM
by Dan Tanner
6 235
First Day Back!
BelleCityLawn1
04-09-2014 09:13 PM
04-15-2014 11:16 AM
by Steve
11 371
Mow America
stevegredler
04-13-2014 01:02 PM
04-14-2014 09:53 PM
by kslawn
5 276
Power Broom
acrajchel
04-14-2014 07:46 AM
04-14-2014 12:47 PM
by CDLAWNCARE
2 156
Say Hello !!!
Steve
03-19-2007 11:18 AM
04-14-2014 11:34 AM
by Steve
1,176 286,841
Equipment reviews
Greg'slawnandlandscape
04-09-2014 07:17 AM
04-14-2014 11:27 AM
by Greg'slawnandlandscape
13 533
Aerating Prices?
Dan Tanner
04-08-2014 03:16 PM
04-14-2014 10:31 AM
by Steve
13 540
Estimating help
acrajchel
04-11-2014 06:06 PM
04-14-2014 10:20 AM
by Steve
3 243
Need help bidding church...
GreenRidge Lawn&Landscape
04-07-2014 08:01 PM
04-14-2014 09:49 AM
by Steve
12 501
» Popular Tags
2wd 4x4 34'' ads article marketing blower butterfly gardens care charge christmas light hanging christmas lighting color jet courtesy call craigslist credit card processing customers echo escrow exmark ferris florida flower bed four wheel drive fundraiser gopherhaul grass gravely holiday holiday lighting how much to charge installation labor cost lawn lawn care lawn care business lawn care business book lawn care business show lawn clarksville lawn service clarksville tn leaf leaf removal lighting brass outdoor lights marketing mow mowing mulch mulch price native plants new buisness new business new start oil outdoor environments payday payment podcast property management company redmax requests riding mower scag seo snow social media starting a business stihl upsell walk behind walker yard clarksville
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:49 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 05:49 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy