What Landscapers Say About Raising Their Prices…
August 23, 2020 By Tony Bass
Our recent article titled, “Are You Afraid to Raise Prices?”, brought us feedback that can help lawn and landscape business owners understand how to deal with this fear and profit greatly.
Here are a few comments, my replies, and proven strategies on the subject of raising prices for lawn and landscape services.
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Commercial Lawn Maintenance Contractor in South Carolina says:
Tony,
I fear both losing and not winning enough new (work).
We are asking for a raise on the lowest 10% of recurring revenue customers that produce less than a 10% net..
We’re hoping to "back door" a raise on the second lowest 10% in the new year.
All new recurring revenue work and one-time work pricing has already increased.
Wes
Tony’s reply: Great job Wes! This is the very best way to raise prices. ONLY RAISE PRICES ON ACCOUNTS THAT DON’T MEET YOUR PROFIT GOALS! This is the fast and easy way to DOUBLE PROFITS while working less.
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Residential Lawn Maintenance Contractor in Georgia says:
Tony,
We are raising prices at ever contract renewal date to the that matches our bid sheet set up. And we have raised the 4 cells that are marked for profit to 15% if they are in the same neighborhood and 20% if not. We signed 3 yesterday.
Now I need the workers. I had a really good crew leader hired but he was afraid of corona and that if he came and freaked out he would lose his unemployment! I was furious!
However, My God will supply all my needs and we will prevail!
Thanks
Hal
Tony’s reply: Great job Hal! Raising prices is the ONLY WAY you’ll be able to afford the higher wage rates that are kicking in. In case you missed it…here’s the link to the article we published titled “The New Minimum Wage for Landscape Workers”.
Yes…your costs are going up! And yes…you now have to compete with the Federal Government for workers. Their FED BONUS to stay home has taken millions of capable workers and parked them on their couch. That policy stinks!
I’m glad you no longer FEAR RAISING PRICES!
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Residential & Commercial Contractor in Ohio says:
Tony,
I raised prices to reflect the increase and pain in ass cost. No fear, just facts. Let a scab pick up who doesn’t like it, it’s better that way.
50.50 landscaping with machines
46.75 mowing residential
42.30 commercial mowing
Specialty work I’m 65 and hour.
2 weeks left and I’ve never made more money than the last 5 months.
Brian
Tony’s Reply: Congratulations on your decision to raise prices Brian. Here’s where I see the PIAC increase.
Finding and keeping workers is a bigger challenge today than it was when unemployment was 3.5%. From non-stop wiping and disinfecting, to being forced to tolerate absenteeism due to painfully slow coronavirus test results, productivity has fallen in many companies (mine included).
We are forced to spend time doing things we didn’t do in the past in the spirit of a “safe work environment”. Plus…we don’t dare allow someone who reports the sniffles or a bellyache to work. So…we try to make do with fewer people many days of the week.
I think we will see a much different business environment after November 4th.
But please…if you got that PPP money this year, don’t count that as INCOME. It’s a loan.
I’ve seen a number of landscapers INCORRECTLY put their PPP money on their income statement. This accounting mistake makes your company look very profitable…but it’s not!
In case you missed it…I warned of the Problems with PPP for Landscapers in this recent article.
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Have you raised your prices in 2020? Are YOU making more money today than anytime in your company history? Are you having trouble finding employees who really want to work?
Or…are you having trouble selling work and finding new customers?
Hit reply and tell me your story.
We might be able to help you.
Thanks for reading.
Tony Bass, founder
The Wealthy Landscaper
If you need help improving profits in your lawn or landscape business...here's 3 ways we can help right now.
1) Raising prices is the fastest way to grow your wealth. If you would like to learn how to raise prices AND keep your best customers, get your copy of the “Double Lawn & Landscape Profits Guide” by clicking here. We teach you who to raise prices on, when to do it, and how to do it in a professional manner.
2) If you want to add a steady stream of high-paying customers and grow your business regardless of what’s going on in the economy, get the “Client Attraction System” by clicking here. This 3-part marketing plan has proven to help you build golden streets and unlock hidden assets often ignored in landscape companies.
3) If you want to talk about your current situation…and see if we should work together on a one-on-one basis, then follow this link and set up a 20-minute strategy session. It’s FREE…
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