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I do it first visit of every other year, I usually say "due to increased costs on the business I will be putting up my costs by £X". (New machinary, wage increase/costs etc) Usually by about 15 to 20%. 80-85% will say ok no problem. If they dont want the price increase I do the garden at the same cost as previously the first visit and then thank them for there business over the years and inform them i wont be coming back ....Then they will ring me back within a week asking me to continue at the new price... but ive usually replaced them as soon as the next phone call comes through, if customers appreciate your work they'll appreciate you need to make a living and most importantly a profit.
Thanks . Since starting out myself I haven't been at this hurdle yet, but it does need addressing 2018/19. And that sounds like a good approach you have there.
Why would it offend them? They expect to receive wage increases/ pension increases each year. They know prices increase on goods, petrol, insurance as they see examples of that themselves all the time.
We send a letter over the winter detailing this years price increase. Normally around 2-3%. We do every year to make it a normal event and keep the increases minimal. Miss a couple of years and it becomes difficult to catch-up.
I didn't mean the price increase would offend them, I meant if they had any questions on it, and not sounding rude with any replies. I guess they increase they own rates or get a pay raise every year themselves. Thanks
I explain when doing the original quote that we always have a price review over winter each end of season to be applied March 1st. They all normally nod their heads as if to say "well that's normal"
Thanks, that's good to know.
It’s a popular subject over the years on LJN - back catalog here -if you fancy some additional reading
if you do it yearly it will be a smaller jump than doing it every 2nd year and a lot will not question it , if any complain about it replace them after all you are there to make a living
Hi all, I’ve struggled with this a little bit as the majority of my customers are regular lawn cuts/maintenance so tend to be £15/£20 per visit.......to increase by 2%/3% each year is what I’d like to do but would equate to a 40p/60p increase which is awkward.
ive tended to wait until I could justify an increase to the next £5.....not what I want to do but can’t think of another way around it.
Any thoughts / advice??
A £1 increase on a £20 job is 5%. Nothing wrong with adding a pound or two at a time.
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