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.

Question about gas price increases:


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-01-2011, 09:33 PM
clegger11 clegger11 is offline
Members
 
Join Date: Mar 2008
Location: durham
Posts: 4
Rep Power: 8
clegger11
Default Question about gas price increases:

Just wondering if you all were going to raise your prices this year due to the ever increasing gas prices? I am seriously considering an 18% increase across the board to protect myself. Any thoughts?
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 03-01-2011, 09:42 PM
950thomas 950thomas is offline
Senior Member
 
Join Date: Jan 2011
Posts: 171
Rep Power: 5
950thomas is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I will go up but I will assess each property to see how much to increase
Reply With Quote
  #3  
Old 03-01-2011, 09:53 PM
DillonB92's Avatar
DillonB92 DillonB92 is offline
Senior Member
 
Join Date: Jul 2010
Location: Memphis, TN
Posts: 197
Rep Power: 6
DillonB92 is on a distinguished road
Default

Would it be weird to increase by like 2 or 3 dolllars
Reply With Quote
  #4  
Old 03-01-2011, 10:14 PM
shadrach's Avatar
shadrach shadrach is offline
Senior Member
 
Join Date: Mar 2010
Location: Indiana
Posts: 261
Rep Power: 6
shadrach is on a distinguished road
Default

If gas was 20% of my expenses and the price of gas averaged $1 more this year than last year, then my expenses would be 7% more this year. I can't see raising price 18% and not losing customers. We are going up 5%. Also have a $1.25/trip charge if gas is $4.00/gallon that week. If you tell people you are raising price because of gas they may expect price to go back down if gas goes down.
Reply With Quote
  #5  
Old 03-02-2011, 08:02 AM
wellbiz wellbiz is offline
Senior Member
 
Join Date: Feb 2010
Location: Livonia, Michigan
Posts: 129
Rep Power: 6
wellbiz is on a distinguished road
Default

I dont see raising my rates at this time. Fuel is a pretty small expense for my company. I will keep an eye on prices, and may add some additional money on to bids later in the season, but for now I am fine. I would probably tighten up my route and try to realize other efficiencies before raising prices.

jay
Reply With Quote
  #6  
Old 03-02-2011, 06:57 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,495
Rep Power: 10
Steve has disabled reputation
Default

What's the best way to go about increasing the prices? Should it be mentioned that it is because of gas or no?
__________________
- 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 03-03-2011, 07:23 AM
wellbiz wellbiz is offline
Senior Member
 
Join Date: Feb 2010
Location: Livonia, Michigan
Posts: 129
Rep Power: 6
wellbiz is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
What's the best way to go about increasing the prices? Should it be mentioned that it is because of gas or no?
Steve,

Good question. Here is my take. If you have to raise prices because of the gas price increases I would first look at my pricing structure. Why is a 30cent increase in fuel prices causing such a issue with profitablity? Did I not figure fuel costs correctly when I set up my pricing structure? When you figured out your hourly rate did you take your monthly fuel costs to be based on fuel at 2 bucks a gallon or did you plan and use a cushion number like $4-5.00

Second why are fuel prices such a big part of my overhead? There may be efficiencies to be found by tightening your route. Maybe consider a different vehicle. Do you really need a F350 dually to pull your 10ft trailer with one 36inch mower on it. Are you using oversized or undersized mowers for your client base.

If you need to increase pricing I would not use fuel costs as a reason. When/If costs on fuel come down the first words out of your clients mouth will be to lower your price back down. I would just site nomal increases in the cost of doing business, inflation etc.

My issue is you are going to have a hard sell in a depressed economy, with a saturated market of contractors trying to raise prices by more then a dollar or two depending on the size of the account. If gas continues to rise I may start to bid new accounts 50cents to a dollar higher, but I may just increase costs on my less competative services where a dollar of two wont matter much to end number.
Reply With Quote
  #8  
Old 03-03-2011, 08:49 AM
KartAnimal29 KartAnimal29 is offline
Junior Member
 
Join Date: Aug 2010
Posts: 3
Rep Power: 5
KartAnimal29 is on a distinguished road
Default

I was planing on raising prices this year anyways , but I'm going up 5 to 10 buck a yard.
Reply With Quote
  #9  
Old 03-03-2011, 06:02 PM
hounddog hounddog is offline
Member
 
Join Date: Dec 2009
Location: Milan Mi
Posts: 31
Rep Power: 6
hounddog is on a distinguished road
Default

Quote:
Originally Posted by shadrach View Post
If gas was 20% of my expenses and the price of gas averaged $1 more this year than last year, then my expenses would be 7% more this year. I can't see raising price 18% and not losing customers. We are going up 5%. Also have a $1.25/trip charge if gas is $4.00/gallon that week. If you tell people you are raising price because of gas they may expect price to go back down if gas goes down.
I'm adding a $1 per cut at $4.45 and a $1.75 at $5 per cut trip charge in to my agreements this year
Reply With Quote
  #10  
Old 03-03-2011, 11:31 PM
john.veolia@gmail.com john.veolia@gmail.com is offline
Junior Member
 
Join Date: Jul 2010
Posts: 13
Rep Power: 6
john.veolia@gmail.com is on a distinguished road
Default

it's not just fuel prices going up. all the things we buy are delivered by trucks, that use fuel. the factories that make the things use fuel. the extra cost is passed to the customer.

so the price of everything is going up, why not lawn care prices???
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
Price increases? jasonw Starting a lawn care business. 2 07-14-2009 11:16 AM
Postal Rate Increases tiedeman General Business Discussions 5 04-08-2007 01:30 AM
price question Gopher Software Support Archived Question & Answers - Read Only 3 03-21-2005 02:16 PM
service price question Enviro-Lawns Gopher Software Support Archived Question & Answers - Read Only 5 06-10-2003 09:40 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
Yesterday 06:40 PM
by GreenWorx
17 560
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
Yesterday 06:38 PM
by mattthelawnguy
5 132
how to make customers...
Bradcook21
05-27-2015 05:04 PM
Yesterday 06:08 PM
by GreenWorx
15 2,733
Assessing the Market
NJDB60
Yesterday 03:25 PM
Yesterday 06:00 PM
by GreenWorx
1 49
NewVenture
NJDB60
Yesterday 03:38 PM
Yesterday 03:38 PM
by NJDB60
0 40
Watch out for this -...
rootytalbot
07-22-2015 02:13 PM
Yesterday 11:36 AM
by Steve
4 150
Need your help, Gopher...
Chilehead
07-23-2015 07:02 PM
Yesterday 11:28 AM
by Steve
11 205
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
Yesterday 11:27 AM
by googus
8 403
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 11:22 AM
by Steve
94 10,204
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-25-2015 07:50 AM
by Chilehead
12 2,230
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
07-22-2015 07:31 PM
by Chilehead
14 2,296
Learning as I grow -...
WarriorLandscapingCAN
07-18-2015 07:46 AM
07-21-2015 10:53 AM
by Steve
3 148
Large dirt mound removal
purdue1973
07-09-2015 07:45 PM
07-20-2015 12:55 PM
by Steve
6 249
Hey everyone
Fantasy landscaping
07-09-2015 06:53 AM
07-09-2015 11:47 AM
by Steve
1 169
Quickbooks Online
jscarolina
07-08-2015 07:54 AM
07-08-2015 12:55 PM
by Nate10928
1 179
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
07-07-2015 09:48 PM
by SGL1
16 2,559
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
07-07-2015 02:54 PM
by GreenWorx
13 3,500
Is it too late to do...
markty
06-16-2015 05:28 PM
07-07-2015 01:00 PM
by problem solver
9 2,308
Hi everyone
Mattw
07-06-2015 05:59 PM
07-07-2015 10:18 AM
by Steve
1 196
4th of July parade...
Steve
07-06-2015 10:35 AM
07-06-2015 10:35 AM
by Steve
0 140
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
07-06-2015 10:30 AM
by Steve
4 309
another newish job for me
holymoly
06-07-2015 08:34 AM
07-03-2015 02:06 PM
by American L&T
9 2,315
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 236
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 2,084
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 208
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 1,916
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-29-2015 09:23 PM
by Chilehead
6 2,086
» Popular Tags
accounting ad landscaping advertising aerocore apartment bid apartment complex apartment lawn care estimate applying bark billy goat brushcutter blowout bush collections contract help curb appeal services deliquentaccounts door hangers edging employee problems equipment dealer equipment rental facebook financials flyers foreman free advertising free lawn care google growing a lawn care business hiring how to husqvarna hydro jobs landscape landscape services landscaping lawn aeration lawn care lawn mowing marketing marketing secrets mr dave mulch new business past due per hour charge per hour service plowing profit on employee quickbooks roundup scag secrets to landscaping shell small engine repair snow plowing solo backpack sprayer sq ft square foot swzt tree tree pics walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:43 AM.


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

All times are GMT -5. The time now is 07:43 AM.

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