Raising Prices???

[lawnsalonforyou]

Need some advice guys! The first few people I signed up I in a way... low balled. I read on here that the average rate for mowing was $40 so that's what I charged....BUT the first few customers are military and they get 10% off. Bringing there rate to $35. My husband is a Ranger in the US Army so I don't mind giving the discount. Now I have way more clients(most of them with much smaller yard) and none of them pay that little. I start at $45 and up now. Discount or not. Question is....can I raise their prices in the middle of the season? Or should I just stick it out until next year and then raise those folks. All of them are in a annual agreement with us. Their yards take a bit more time than anticipated and I think they should pay more. I don't want to risk losing them, or make them feel like we are not true to our word and change there agreement in the middle of the season. What do you guys think?

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Tianna D

http://www.lawnsalonforyou.com

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I never think it is a good idea to raise prices in the middle of the season. Put yourself in the customers shoes would you want to be told the price is going up in the middle of the season? I would suck it up for this year and do a great job for those customers. Then next season raise them a few bucks but don't shock them unless you don't need them. Hopefully they will be pleased enough with your services that a increase won't bother them. Remember there are a lot of LCO'S and low ballers out there trying to get your accounts!! I only raise prices in the middle of the season for pain in the a-ss clients I don't want. The low ballers can have them. TURF

[Steve]

Tianna,

This is a milestone in your business I hope you are aware of that! You are filling your customer base and you are now looking to get more profit out of them! Congratulations!

I agree I wouldn't raise prices mid season unless they are problem customers. I'd wait until the end of the season. If you start finding you are getting more profitable customers, you could always potentially drop a not so profitable one if they are too far out of the way. Or send them to another lawn care business in the area. Ultimately you want tight routes with high profits.

When you think of the current customers you have that you want to raise their prices are most of them paying $35 and you want to get them to $45? How long does it take to service their yard?

Can you offer any upsells to improve the profit per customer? If so, what are you thinking?

[lawnsalonforyou]

Thanks for all the input guys! I guess this is kinda a mile stone Steve!!!

I'm not going to raise prices until next year. I have been up selling things to them like pressure washing and flower bed design. Only a few bites...but after I think about it...it makes up for the loss! Also those $35 clients have probably sent me the most referrals. So not to much to bitch at after all. It was just one of those days! lol

I hope everybody's biz is rockin!!

[Steve]

Have you thought about making any promotional offers for mothers day coming up? I bet you could come up with a lot of upsell ideas with that!

[lawnsalonforyou]

You know it's funny you said that I'm making flyers as we speak! lol I have so many left over gift certs from that Women's Conference I went to back in March that I'm going to push them in this next flyer. I figure everyone has a mom...knows a mom...lives near a new mom. What better thing to give her than a gift cert for a free mow. I know I'd much rather get that for Mother's Day than the same old flowers!

Any ideas on what else to offer. I was thinking about flower bed design...but its always so different I'm not sure how to offer a special for something that varies so much in cost??

[Steve]

Any ideas on what else to offer. I was thinking about flower bed design...but its always so different I'm not sure how to offer a special for something that varies so much in cost??

What about offering some kind of potted flower display? Instead of having an infinite amount of designs you could make, you could offer 1 or 2 potted displays.

You could give them away with your mowing service or you could use them as an upsell to your mowing service?