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How To Increase Cost Of Reg Service.

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Lucky
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How To Increase Cost Of Reg Service.
#1

As most of you know im a noob in my 3rd year and have only just become profitable.

 

How do you go about increasing the cost of a regular service?


Posted 05 April 2016 - 07:13 PM

john22
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How To Increase Cost Of Reg Service.
#2

The good ones put it up for you lol, but I normally send out a nice letter explaining the need for an increase and they never complain. Even in general conversation for those at home I just bring it up and tell them the next time it will be x amount. Nobody has ever told me to pee off yet....


Posted 05 April 2016 - 07:49 PM

Arfa Brayne
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How To Increase Cost Of Reg Service.
#3

The good ones put it up for you lol, but I normally send out a nice letter explaining the need for an increase and they never complain. Even in general conversation for those at home I just bring it up and tell them the next time it will be x amount. Nobody has ever told me to pee off yet....

 x2 

Usually there is a reason why you are putting the price up - extra gardens or obstacles, cost increases, underquoted.

Be honest, be fair, and if there is a problem with increasing the price - look for a way you can decrease your service and tell the client what you will have to "not" do to maintain the current price. 

If they still want the impossible for nothing - walk away and tell them to call you when they have tried some of the opposition and want you back for the increased price.


Posted 05 April 2016 - 07:58 PM

"Can't" is a dirty 4 letter word.
If someone says "Can't" , take the "T" off the end and brew in boiling water.
Sip on your 'T, relax, and take a look at what you've got left to work with.


Iand
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How To Increase Cost Of Reg Service.
#4

only increase 30-50% of clients at a time that way if any do leave,you have time to replace them before the others get their increase,increase clients you don't mind losing the 2nd highest and those you would like to lose the highest :)Preferably don't try to put up prices when the grass isn't growing unless you're also extending the visit time 


Posted 05 April 2016 - 08:34 PM

Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against smile.png


john22
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How To Increase Cost Of Reg Service.
#5

:)I was at a job today, a very good client that I charge $45 the money is in my account the next day. The job takes 25mins so it's well priced, since my last visit she had one of those huge round trampolines erected in the tiny backyard. It was annoying dragging it around and I thought to myself about reading this thread last night. When I finished I said to her we will have to increase to $50 now, the tramp is more work. She laughed and settled on $55, I guess you need to grab any good reason to up the price.


Posted 06 April 2016 - 03:03 PM

Lucky
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How To Increase Cost Of Reg Service.
#6

Nice work John22.

 

I had a quote to do first up this morning. It was on a property that I was mowing whilst it was listed for sale around November-Feb. I was charging the Real Estate $60.

 

New guy had recently bought it and gotten my number from the old duck over his back fence whom ive done a bit of work for over the years.

 

I rock up and the lawn was done not that long ago. I have a chat and find out that VIP had done it last week and he wasnt happy as they had quoted him $40 but then charged him $45.

 

So maybe my prices dont need adjusting just yet....


Posted 06 April 2016 - 04:01 PM

john22
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How To Increase Cost Of Reg Service.
#7

Sounds like your doing well, I'm in close contact with four other contractors in my area. We help each other out if one has a holiday or someone gets sick. One of them is sneaky and I'll share it not that I approve, but every so often he gets friends and clients to ring around from the local paper and the net ect for quotes. I always know if my prices are fair, but I still have some clients left from when I started in Feb 98. Then they were $25 now 18 years later $40-$45, probably not enough of an increase in time given the cost of living, but after all these years I aint got the heart to put it up. Just like the two old dears in their 90's and still paying $25-$30, I feel good helping them even though I am running at a loss if you know what I mean.


Posted 06 April 2016 - 06:22 PM

Rob the Lawn Man
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How To Increase Cost Of Reg Service.
#8

Do you think that you need to give the client a reason for a price rise?

Would you admit that you under quoted?
Would you use rising costs as an excuse?
Any other good reasons?

Do you tell them face to face, letter, text.
Do you bring it up in conversation that prices will probably go up next spring to see there reaction?

I already have about a third of my customers earmarked for price rises in Spring.
I based this on number crunching and a bit of feel. That is, once I've determined the hourly rate I'm getting, how is my mood while doing the lawn. Happy- no price rise. Neutral - small rise. Annoyed by my under quoting- large rise.

If your run is full or close to full this is going to be easier to raise prices. But for those who are not in this position, it would be daunting.
Posted 07 April 2016 - 09:37 AM

drewebb
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How To Increase Cost Of Reg Service.
#9

3% per annum works ok for clients who pay by direct deposit but for cash that,s a bit awkward ie $40 becomes $41.2


Posted 07 April 2016 - 12:22 PM

john22
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How To Increase Cost Of Reg Service.
#10

I put one up today, it's been $40 for years. They put in some gardens and laid Sir Walter turf that grows much faster. The job now takes 10 mins longer so I put it up to $50. No complaints


Posted 07 April 2016 - 01:44 PM

crocster
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How To Increase Cost Of Reg Service.
#11

Related to this topic I'm wondering what average price do others charge - I've been in business about 6 months, based in suburban Brisbane, have about 35 regulars and the average price would be $45-50 for a regular cut - most jobs take 45-60mins - I have a few big ones at $55-$60 (take me over an hour) but I've noticed definite resistance once I quote over $55 - don't get many when I say $60. What is your experience? What's your "sweet spot" for quote pricing?

 

Reason I'm asking is I don't want to put prices up next spring to uncompetitive levels and lose too many - I'm thinking around $5 per customer - maybe better to focus on being more efficient on the job - self-propelled mower with wider cut - more efficient collection of clippings as I cut - get faster on the whipper etc. I'm going to do this anyway but I'm wondering how I'm priced at the moment?


Posted 07 April 2016 - 06:00 PM

Lucky
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How To Increase Cost Of Reg Service.
#12

I try to work on $1 a minute for mowing. Smallest job i have is a nature strip that is about 4 m long and 1m wide and i charge $10. And $2 a minute (or more) for hedge and chainsaw work with a min charge of $50 to pick up the chainsaw. I do tend to charge more than $2 a min for these.

 

Most expensive private regular mow i have are two at $70. Both take an hr and 1/2.

 

Most expensive Unit complex i have is $300 a month. Takes me 2-2/12 hrs but depending on the grow i sometimes mow once a fortnight or once a month. Its a monthly maintenance quote. (I love these and have three, its a good point of difference when quoting to).

 

Most profitable mow is one thats every 3 weeks, takes me 30min and i charge $60. (and the grass is never long, it is a fiddly job though). 

 

I rarely catch.

 

I dont do hourly rates, i only do quotes

 

As a new first time self propelled mower owner, they are faster and easier on the body. (once ur leg muscles get used to moving faster!)

 

Rubbish removals are normally $60 for the first load and $50 after that. Knock $10 off those for regular mow customers. 

 

 

Always interesting to see what others charge.


Posted 07 April 2016 - 07:01 PM

john22
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How To Increase Cost Of Reg Service.
#13

In response to Croc it all depends of the area in Brisbane you work, your prices seem good. I work in Albany Creek and Bridgeman Downs, as you would have read my prices are a tad above average. However a mate that works in Clayfield and Ascot works on $100 an hour and he gets it all day long the lucky bugger.....


Posted 07 April 2016 - 07:22 PM

Lucky
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How To Increase Cost Of Reg Service.
#14

quoting over hourly rate 


Posted 07 April 2016 - 07:23 PM

crocster
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How To Increase Cost Of Reg Service.
#15

Hi Lucky, I do hourly rates in certain circumstances - first cut on an overgrown lawn - "regular" client who blows me off more than 2 weeks over regular cut (when it really does need cutting) - $60/hr. So far it's working well for me. I've got 3 next week on this basis - I reckon 1 1/2 hours each - no stress for me - what it takes is what they get charged.


Posted 07 April 2016 - 07:34 PM

crocster
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How To Increase Cost Of Reg Service.
#16

Thanks John,

I bought my ute from a guy with a property maintenance business in Norman Park/Bulimba - we got talking about business and he said "Mate you gotta be charging 80-100 an hour" - I said "They just won't pay it" - he said "Where do you live?" - I said "Sunnybank Hills" - he said " Yeah, you're right - you need to pick another suburb" :angry:

 

It's something I'm toying with - advertising or buying a starter run in an area with less resistance to paying for services.

 

Cheers


Posted 07 April 2016 - 07:55 PM

drewebb
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How To Increase Cost Of Reg Service.
#17

Someone once said Charge More Work Less. I guess it really makes you look at how to define  " work less''  :)


Posted 07 April 2016 - 08:10 PM

crocster
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How To Increase Cost Of Reg Service.
#18

If my gastroenterologist can relieve me of $250 for a 10 minute chat about gallbladders I should be able to relieve him of $90 to manicure his tiff dwarf - just need to find out where he lives :lol:


Posted 07 April 2016 - 08:29 PM

Chris
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How To Increase Cost Of Reg Service.
#19

How you word it makes a big difference. 'In light of rising costs I need to charge x amount now' vs 'Is it ok if I charge you a little bit more now to cover costs?' 'I need' is quite powerful. Assert your needs confidently. If you use a method similar to the second example you give them an opening to negotiate and make it so much easier for them to oppose the increase.

Don't negotiate with them and don't negotiate with yourself. You need to charge x amount, they need to pay x amount. But by all means be polite about it, use an example of how rising costs are affecting others too, like fuel for example. This will help them accept it as being just like many other price increases and not just you trying to squeeze a few more dollars out of them.


Posted 08 April 2016 - 07:48 PM

wogarl
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How To Increase Cost Of Reg Service.
#20

Hi Guys , do you have a standard letter to send to customer re price increase.  I though there was one but have been unable to find it 


Posted 13 October 2016 - 10:03 PM




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